Dubai has long been synonymous with innovation, especially when it comes to real estate. Now, the emirate is once again setting the pace globally with the Dubai Land Department’s (DLD) introduction of the Real Estate Tokenisation Project. This groundbreaking initiative is the first in the Middle East, leveraging blockchain technology to enhance how properties are bought, owned, and sold.
Understanding Real Estate Tokenisation
Real estate tokenisation is the digitalization of property ownership, where real estate assets are converted into digital tokens on a blockchain. Each token represents fractional ownership, allowing multiple investors to collectively own a single property. Compared to traditional property investment methods, tokenisation offers several distinct advantages:
- Enhanced Liquidity: Easier and quicker to buy or sell property shares.
- Greater Transparency: Blockchain records every transaction securely and transparently.
- Simplified Transactions: The entire process from investment to sale is streamlined digitally.
Inside the DLD’s Innovative Approach
The DLD’s pilot project, launched in March 2025, is a collaboration involving the Dubai Virtual Assets Regulatory Authority (VARA) and the Dubai Future Foundation (DFF), executed through SandBox Real Estate. The aim of this initiative is clear—to democratize property investment by making it accessible to more people through fractional ownership.
DLD predicts tokenisation will significantly influence Dubai’s property market. By 2033, tokenised real estate is expected to represent about 7% of Dubai’s property transactions, amounting to a market value of AED 60 billion (approximately $16 billion).
Industry Perspective
Rakan Alalami, CEO of Unwind Properties, emphasizes the transformative potential of this initiative:
“This initiative addresses the long-standing issue with traditional fractional ownership—specifically, the difficulty of cashing out. Currently, exiting from such crowdfunded investments is not a seamless process. I believe this move will compel crowdfunding companies to abandon their traditional models and adopt tokenisation instead.
Moreover, it will create new opportunities for insolvent property owners to raise capital and allow developers to attract a wider pool of small investors for their unsold properties.”
Exploring Opportunities and Challenges
Benefits for Investors and Developers
- Accessible Investment: Investors can start with lower amounts, expanding the investor base.
- Liquidity and Flexibility: Easier to enter and exit property investments.
- Cost Efficiency: Reduced transaction costs thanks to blockchain technology.
Challenges to Overcome
- Regulatory Clarity: Clear regulations are essential to ensure market stability and investor protection.
- Awareness and Education: Stakeholders must understand tokenisation fully to adopt it widely.
- Technological Security: Ensuring robust blockchain platforms is critical for secure and seamless transactions.
Conclusion: The Future is Here
The DLD’s Real Estate Tokenisation Project signals Dubai’s firm commitment to leading the global real estate market through innovation. By adopting blockchain technology, Dubai is enhancing investment accessibility, operational transparency, and market liquidity. This initiative not only positions Dubai as a pioneer in fintech and real estate innovation but also sets a new standard globally.
Interested in exploring tokenised real estate investments further? Reach out to us or explore our offerings at Unwind Properties.
Share Your Thoughts
How do you see tokenisation shaping the future of real estate investment in Dubai? Let us know your thoughts below.
