Co-Ownership Of Property In Dubai: New Project To Offer Real Estate Through Tokenisation

2025-03-19 04:41:54

(MENAFN- Khaleej Times)

Dubai Land Department (DLD) on Wednesday said it launched the pilot phase of the 'Real Estate Tokenisation Project' to implement tokenisation on property title deeds to open new investment opportunities for investors.

DLD said it seeks to diversify property ownership by allowing multiple investors to co-own a single property through tokenised Real estate assets.

Real estate tokenisation transforms real estate assets into digital tokens using blockchain technology. Each asset is divided into shares based on an investor's budget and financial strategy, enabling fractional property ownership.

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This approach marks a significant shift by allowing investors to acquire a portion of a property without fully purchasing it, leveraging advanced technology. Unlike crowdfunding, which grants investors access to the real estate market with small investments through digital platforms, tokenisation offers a distinct and more structured model for real estate investment.

Dh60-billion market

The project will strengthen Dubai's position as a regional and global hub for virtual assets, enhancing its competitiveness on both local and international levels.

DLD anticipated that this groundbreaking initiative would drive significant growth in the real estate tokenisation sector, with its market value projected to reach Dh60 billion by 2033, representing seven per cent of Dubai's total real estate transactions.

“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.

“Following this year's pilot launch, we will thoroughly assess the outcomes and leverage key insights to refine the project ahead of its full-scale implementation.”

He added that this project is part of the recently launched 'REES' Real Estate Innovation Initiative to attract diverse technology firms.

The project is being implemented in collaboration with the Dubai Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF) through SandBox Real Estate.

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