Dubai’s real estate tokenisation plan will enable small investors to access high-value properties without requiring significant capital, according to industry executives.
On Wednesday, the Dubai Land Department (DLD) initiated the pilot phase of the ‘Real Estate Tokenisation Project’ to integrate tokenisation into property title deeds.
“This allows investors to enter the high-value property market without substantial capital, making real estate more accessible. It will attract a larger pool of investors, including international buyers, enhancing market liquidity and driving growth. Additionally, blockchain technology ensures secure transactions while minimising risks,” said Wissam Breidy, CEO of HRE Development.
“Although luxury and high-end properties may lead in tokenisation, the benefits will extend across all segments. Affordable housing and commercial properties can also adopt this model, broadening access to real estate investments,” Breidy added.
How Real Estate Tokenisation Works
Real estate tokenisation converts property assets into digital tokens using blockchain technology. Each property is divided into shares based on an investor’s financial strategy, allowing fractional ownership.
This enables investors to acquire a portion of a property without purchasing it in full, leveraging blockchain technology. Unlike crowdfunding, which provides access to real estate through digital platforms with small investments, tokenisation offers a structured and regulated investment model.
The DLD stated that the initiative aims to diversify property ownership by enabling multiple investors to co-own a single property through tokenised assets.
Breidy also noted that converting real estate into digital tokens enhances market transparency.
Short-Term Rentals & Branded Residences
Rohit Bachani, co-founder of Merlin Real Estate, highlighted that tokenisation offers broad advantages across Dubai’s property market.
“Luxury properties, including branded residences, villas, and waterfront homes, will likely see strong demand for tokenised investments. However, this innovation also benefits other segments, such as short-term rentals and residential properties in emerging areas. Tokenisation makes it easier for investors to explore options like villas, townhouses, and high-yield properties in prime locations such as Meydan,” said Bachani.
He added that flexible payment plans and attractive returns on investment make tokenisation beneficial for investors across various segments, fostering a stronger and more sustainable market.
Benefits for Large-Scale Projects
Industry experts believe large-scale real estate projects in Dubai will gain from tokenisation.
“Commercial properties, particularly office buildings and retail spaces, present strong tokenisation opportunities due to their stable income potential. For developers, tokenisation offers alternative financing options beyond traditional banking, potentially speeding up project completion,” said Yogesh Bulchandani, CEO of Sunrise Capital.
He further noted that luxury residential properties could benefit immediately from fractional ownership, helping ease inventory pressures in the high-end market.
Farooq Syed, CEO of Springfield Properties, stated that while all real estate segments will benefit, high-value and commercial properties will experience the most significant impact, as large capital requirements have traditionally limited investor participation.
“Luxury and high-end developments can now attract a wider range of investors, while commercial real estate could see increased liquidity as businesses and investors gain easier access to fractional ownership,” Syed concluded.
