Dubai Land Department Begins Real Estate Tokenization Pilot
This initiative makes Dubai Land Department the Middle East’s first real estate registry to tokenize property title deeds.
Dubai Land Department (DLD), a Dubai government entity responsible for the registration, organization, and promotion of real-estate investments, has launched the pilot phase of its real estate tokenization project, marking a significant step in integrating blockchain technology into the property sector.
The project, which is part of DLD's Real Estate Evolution Space (REES) innovation initiative, positions it as the first real estate registration entity in the Middle East to apply tokenization to property title deeds.
Tokenization digitizes real estate assets by converting them into digital tokens recorded on blockchain technology. In this case, it enables fractional ownership, allowing investors to hold shares in properties without full purchase commitments. This approach expands access to the real estate market, while maintaining a structured investment framework distinct from crowdfunding.
Developed in collaboration with the Dubai Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF) through the SandBox Dubai program, the project aligns with the Dubai Real Estate Sector Strategy for 2033. DLD expects real estate tokenization to reach AED60 billion (US$16.34 billion) in market value by 2033, representing seven percent of Dubai’s total real estate transactions.
In a statement, HE Marwan Ahmed Bin Ghalita, Director General of DLD, said, “Amid rapid technological advancements and the increasing reliance on digital solutions, real estate tokenization 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, tokenization 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.”
HE Marwan Ahmed Bin Ghalita Director General of Dubai Land Department (DLD). Image courtesy DLD.
He added, “This pioneering project is part of the recently launched REES innovation initiative, designed to attract diverse technology firms. It aligns with our strategy to unlock new opportunities for innovative real estate products, enhance property sector innovation, promote transparency and governance, and enable a wider pool of investors to participate in large-scale real estate projects in Dubai.”
By promoting investment awareness and fostering innovation, the initiative strengthens Dubai’s position as a leading global hub for virtual assets. It also encourages investment in the sector while ensuring regulatory protections for stakeholders.
Earlier this year, MANTRA, a purpose-built layer 1 blockchain for tokenized real-world assets (RWAs), signed a US$1 billion agreement with the Dubai-headquartered investment conglomerate DAMAC Group to tokenize assets across the latter's portfolio, which includes real estate, hospitality, data centers, and other sectors.
The collaboration will enable token-based financing for DAMAC’s assets, which are valued at a minimum of $1 billion. These tokenized assets will be available exclusively on the MANTRA Chain in early 2025, thereby offering increased transparency, security, and accessibility to investors.
