Dubai Land Department Announces Real Estate Tokenisation

In a first for the Middle East, the Dubai Land Department (DLD) has announced the start of tokenisation on all property title deeds in the city. The pilot phase of the Real Estate Tokenisation Project, which is in line with the Dubai Real Estate Sector Strategy 2033, was launched last week and provides a notable boost to co-ownership (also called fractional ownership). 

This is a revolutionary step. Rather than purchasing an entire property outright, tokenisation will allow an investor to acquire a small portion of it. The threshold to buy high-end real estate has, therefore, been reduced overnight. In essence, a far greater number of investors can now access and participate in the real estate market. 

It is also a significant buffer against any fears of a real estate slowdown. The Dubai property market has been enjoying record-breaking numbers since the pandemic, with 2024 witnessing AED 522.5 billion (~ US$142.24 billion) in sales transactions — the highest ever. Now, fractional ownership via tokenisation provides a visible and sustainable influx of funds into the market. This will go a long way in countering any threats of a city-wide slowdown or bursting of the so-called Dubai real estate bubble. In fact, according to DLD projections, the real estate tokenisation sector is expected to reach AED 60 billion (~ US$16.34 billion) by 2033, which will be 7% of Dubai’s total property transactions. While experts predict the luxury market will capitalise most quickly, the benefits of tokenisation should extend to all sectors, areas, property types and budgets. 

Importantly, the process uses advanced blockchain technology to divide properties into recognisable shares per investor. This makes for far more transparent and secure buying and selling processes than alternative methods like crowdfunding. The presence of more fixed records also decreases the chances of fraud or theft. Especially of note is the fact that the DLD is the first registration entity in the Middle East to adopt blockchain technology. The initiative is being implemented in collaboration with the Dubai Virtual Assets Regulatory Authority (VARA) and the Dubai Future Foundation. It is a project that positions the city as a leading light in real estate technology globally. 

His Excellency Eng. Marwan Ahmed bin Ghalita, Director General of DLD, said: 

“Amid rapid technological advancements and the increasing reliance on digital solutions, real estate tokenisation emerges as a revolutionary tool driving fundamental change in the real estate sector. By converting real estate assets into digital tokens recorded on blockchain technology, tokenisation simplifies and enhances buying, selling, and investment processes. This aligns perfectly with Dubai Land Department’s vision to achieve global leadership in real estate investment, leverage technology to develop innovative real estate products, and foster an ecosystem that supports real estate innovation.”