Will ‘real estate tokenization’ create an investment wave of its own?

For budget-conscious investors, real estate tokenization in Dubai presents an exciting opportunity to participate in the city’s booming property market. Instead of purchasing entire properties, investors can now own fractional shares, making it easier to access high-value assets with lower capital.

Dubai: Are you investing in Dubai’s thriving property market? Or trading on the Dubai Financial Market? Now, a powerful third avenue is emerging—one that combines the strengths of both sectors.

Welcome to the era of real estate tokenization.
This innovative model allows investors to buy fractional ownership in high-value properties, rather than purchasing entire assets. These property tokens are securely recorded on the blockchain and can be traded much like stocks—bringing liquidity, transparency, and accessibility to the real estate sector.

By bridging the gap between traditional real estate and modern financial markets, tokenization is set to unlock new growth opportunities for both investors and the wider industry.

These tokenized property assets are backed by official title deeds, ensuring investor confidence and legal security.

One of the UAE’s leading developers, MAG, has already embraced this innovation by committing $3 billion worth of projects to tokenization through MultiBank Group’s upcoming $MBG platform. Among the flagship developments set to feature on the platform are The Ritz-Carlton Residences, Dubai, Creekside, and Keturah Reserve, marking a significant step toward integrating blockchain with premium real estate.

Other major developers are also entering the tokenization space, recognizing its potential to reshape the real estate landscape. Even beyond property, innovation is gaining momentum—in Ras Al Khaimah, the emirate’s tourism authority is exploring blockchain-powered travel rewards to enhance visitor engagement.

When it comes to Dubai’s dynamic property market, the impact is even more profound.

“Tokenization introduces real-time pricing, enhanced liquidity, and greater transparency—factors that firmly position Dubai as a global leader in real estate innovation,” said Zana Jablan Musa, Operations Director at the specialist consultancy Sovereign PPG.

The integration of the Digital Dirham into real estate opens the door for direct settlements between buyers and sellers, on-chain transfer of ownership, audit trails and title registrations – which will be overseen by government issued currencies and contracts.

Zana Jablan MusaOperations Director at Sovereign PPG

Fractional ownership – multiple investors buying into an asset – had been allowed in Dubai property market for some time. But it had never caught on that much – this is where tokenization and Blockchain entries come into play. And targeting a new cohort of investors.

Dubai Land Department sets it rolling

It was as recently as March last that Dubai Land Department announced it was doing a pilot test that would create opportunities for tokenizing real estate assets in Dubai.

“By converting real estate assets into digital tokens recorded on Blockchain technology, tokenisation simplifies and enhances buying, selling, and investment processes,” said Marwan Ahmed Bin Ghalita, Director-General of Dubai Land Department.

Stripped down to its basics, that’s all there is to it – a chance for investors looking to Dubai property market to get in but on more accessible price points.

“This isn’t about complicated structures or costly legal workarounds,” said Scott Thiel, CEO and co-founder of Tokinvest, had said recently. 

“It’s about making it simple, secure, and affordable for more people to invest in the kinds of property assets that were once reserved for the ultra-wealthy. Investors around the world should be watching closely—because this is what the future of real estate looks like.”

How will Dubai’s real estate tokenization be regulated?

• The actual tokenization is regulated by VARA, Dubai’s dedicated virtual asset authority. The enforcement aspect and asset registration will be integrated through the DLD ‘which creates clear accountability and compliance requirements, making regulation and integration Dubai’s top priority when it comes to the use of digital assets’, said Musa.
• In DIFC, entities dealing with digital assets, including those facilitating tokenized real estate transactions, are required to obtain Dubai Financial Services Authority (DFSA) authorisation. They must adhere to stringent compliance measures, including anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.

On whether multiple firms can offer such ‘real world assets’, Musa said: “Yes, but only within a regulated framework.

“Tokenization services related to real estate in Dubai can be offered by licensed entities registered under VARA and/or DIFC and recognised by Dubai Land Department. This ensures that only firms with proper compliance and technical standards can participate.

“It’s an open ecosystem that encourages innovation while ensuring investor protection and asset legitimacy.”