TL;DR
- The Dubai Land Department (DLD) has launched the pilot phase of an ambitious project to convert properties into digital tokens on blockchain.
- Real estate tokenization is expected to reach a value of 16 billion dollars by 2033, representing 7% of total real estate transactions in Dubai.
- This development will remove barriers for international investors, enabling the buying and selling of real estate in a safer, faster, and more accessible way.
The Dubai Land Department (DLD) has taken a historic step in adopting blockchain technology by launching a pilot project for real estate tokenization. This initiative, developed in collaboration with the Dubai Future Foundation (DFF) and the Virtual Assets Regulatory Authority (VARA), aims to transform the real estate market by converting properties into blockchain-based digital assets. With this move, Dubai becomes the first real estate market in the United Arab Emirates to integrate this technology directly into official property records.
According to official estimates, real estate tokenization could reach 16 billion dollars by 2033, representing 7% of all real estate transactions in the city. This growth is part of a more ambitious plan, as Dubai expects the tokenized real estate sector to reach a total value of 60 billion dollars by that date. Additionally, this model will democratize real estate investment by lowering entry costs and improving market liquidity, allowing more individuals and businesses to participate in the sector.
Tokenization: The Real Estate Revolution
The director general of the DLD, Marwan Ahmed Bin Ghalita, emphasized that tokenization not only simplifies the buying and selling process of properties but also drives real estate investment toward a more efficient and accessible model. By digitizing property titles on blockchain, transactions will become faster, more secure, and more transparent, reducing administrative costs and opening opportunities for small investors who previously could not enter the Dubai market. The increased accessibility could also attract new institutional investors, further boosting the city’s position as a top real estate hub.
Scott Thiel, CEO of Tokinvest, described this step as a “transformative moment” for the sector. According to the executive, tokenization is no longer a futuristic concept but a concrete reality that will turn Dubai into a global hub for real estate investment.
Dubai’s government vision has been key to this progress. Unlike other jurisdictions that impose ambiguous regulations, the United Arab Emirates has actively worked to establish a clear legal framework for real-world asset (RWA) tokenization. This approach has made Dubai a magnet for crypto and blockchain investment, solidifying its status as a global leader in financial innovation and asset digitization.
