Real Asset News: Dubai Launches Real Estate Tokenization Pilot, Predicts $16B Market by 2033

Dubai to launch real estate tokenization pilot, expecting market to reach $16 billion by 2033

The Dubai Land Department's initiative aims to expand access to real estate investment and improve transparency using blockchain technology.

Christian Sandor | Edited by Sheldon Rebeck on 19 Mar 2025 17:07 UTC

Key points:

• The Dubai Land Department (DLD) has launched a pilot project to tokenize real estate, using blockchain technology to document property ownership.
• The Virtual Asset Regulatory Organization was also involved in the development of this initiative.
• DLD estimates that by 2033, tokenized real estate could account for 7% of total real estate transactions in the city, with its value approaching AED 60 billion (US$16 billion).

The Dubai Land Department (DLD), the government body responsible for real estate, has announced the launch of a pilot program to tokenize real estate, marking the first time the registration authority in the Middle East has adopted blockchain technology for the processing of property titles.

The initiative was developed in collaboration with the Virtual Assets Regulatory Authority (VARA) and the Dubai Future Foundation (DFF). The project is in line with Dubai’s Real Estate Vision 2033 and broader efforts to strengthen its position as a global tech hub.

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The department estimates that by 2033, tokenized real estate could account for 7% of the city's total real estate transactions, reaching Dh60 billion (US$16 billion).

Dubai's move to tokenize real estate reflects a growing trend of integrating blockchain technology into traditional markets, bringing real-world assets (RWAs) such as bonds, funds and loans into the crypto space.

Versions of RWA digital tokens can be partially owned and transferred via blockchain, lowering barriers to entry for investors and increasing market liquidity. Unlike crowdfunding, which pools investors’ funds to purchase real estate, tokenization offers a more structured ownership model. However, a McKinsey report on tokenization published last year identified real estate as one of the asset classes that could see slower growth in tokenization adoption due to operational challenges.

DLD Director General Marwan Ahmed bin Ghalita said the initiative would “simplify and improve the processes of buying, selling and investing” in local real estate, adding that the department was working with technology companies to refine the project before scaling it up.

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