Dubai Moves To Widen Property Access Through Tokenised Ownership

(MENAFN- The Arabian Post) Arabian Post Staff -Dubai

Dubai has begun opening its high-value property market to smaller global investors by allowing completed homes to be bought and sold in fractional digital shares through blockchain-based platforms, a move that could reshape how international capital enters the emirate's real estate sector.

The approach, known as real-estate tokenisation, allows a finished apartment or villa to be divided into hundreds of digital units, each representing a proportionate ownership stake. Individual tokens have been offered at prices as low as about $545, sharply reducing the entry barrier in a city where full residential units frequently change hands for millions of dirhams.

Pilot transactions have already taken place through PRYPCO MINT, a tokenised property platform developed in partnership with the Dubai Land Department. The department, which oversees property registration and regulation in the emirate, has described the initiative as part of a broader effort to modernise market infrastructure while widening participation.

Fractional property ownership gains ground

Under the tokenisation model, the legal title of a completed property remains registered with the authorities, while economic ownership is represented by blockchain-based tokens that can be traded on approved platforms. Investors receive income distributions and capital gains in proportion to their holdings, while day-to-day property management is handled by appointed operators.

Officials involved in the pilot say the structure is designed to preserve regulatory oversight while introducing flexibility more commonly associated with financial markets. Transactions are recorded on distributed ledgers, allowing near-instant settlement and detailed audit trails. Supporters argue this could increase liquidity in a traditionally illiquid asset class, particularly for investors seeking exposure without committing large sums or taking on the operational burden of ownership.

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The initiative also aligns with Dubai's long-standing strategy of positioning itself as a hub for financial innovation. Over the past decade, the emirate has promoted regulatory sandboxes, digital asset frameworks and property reforms aimed at attracting overseas capital. Tokenisation is being presented as an extension of that trajectory rather than a departure from existing rules.

Regulatory guardrails and cautious rollout

Authorities have stressed that the model is being rolled out gradually. Only completed and income-generating properties are being considered in the early phase, reducing construction and delivery risks for investors. Platforms involved must comply with existing property laws, anti-money laundering standards and know-your-customer requirements, and tokens cannot be marketed or traded outside approved channels.

The Dubai Land Department has indicated that the pilot phase is intended to test demand, pricing behaviour and secondary market activity before any wider expansion. Industry participants say this cautious approach reflects lessons drawn from more volatile segments of the digital asset market, where rapid innovation has sometimes outpaced regulation.

Legal experts note that fractional ownership is not new in real estate, but blockchain-based implementation introduces additional considerations around custody, investor rights and dispute resolution. Clear documentation and enforceable contracts will be essential if tokenised assets are to gain the confidence of institutional as well as retail participants.

Appeal to global retail investors

For smaller investors, the attraction lies in access and diversification. Instead of committing capital to a single property, tokenisation allows exposure to multiple assets across locations and price points. This may be particularly appealing to expatriates and overseas buyers who have traditionally viewed Dubai property as attractive but out of reach.

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Developers and brokers involved in the pilot argue that tokenisation could also broaden the buyer base during market cycles when demand for high-ticket units softens. By tapping a wider pool of investors, they say, the model could provide an additional channel of liquidity without undermining price discovery in the primary market.

Sceptics, however, caution that secondary trading volumes remain untested and that pricing transparency will be critical. If tokens trade at significant premiums or discounts to underlying property values, confidence in the model could be undermined. Others point to the need for robust investor education to ensure participants understand both the benefits and risks of fractional ownership.

Implications for Dubai's property market

Dubai's real estate sector has long been characterised by its openness to foreign buyers and its willingness to adopt new structures, from freehold zones to long-term residency-linked ownership incentives. Tokenisation adds another layer to that framework, potentially integrating property more closely with digital finance.

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