Dubai: Dubai Land Department (DLD) launched the pilot phase of the 'Real Estate Tokenisation Project.' This initiative, introduced under the Real Estate Innovation Initiative 'REES,' establishes DLD as the first real estate registration entity in the Middle East to implement tokenisation on property title deeds.
According to Emirates News Agency, the project is being implemented in collaboration with the Dubai Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF) through SandBox Real Estate. DLD anticipates that this initiative will drive significant growth in the real estate tokenisation sector, with its market value projected to reach AED 60 billion by 2033, representing 7% of Dubai's total real estate transactions.
As part of this initiative, DLD organised a workshop on 'Real Estate Tokenization,' bringing together leading proptech companies, including top global firms specialising in real estate asset tokenisation. Eng. Marwan Ahmed Bin Ghalita, Director-General of Dubai Land Department, remarked that real estate tokenisation emerges as a tool driving change in the real estate sector by converting assets into digital tokens recorded on blockchain technology. This simplifies and enhances buying, selling, and investment processes.
The project is part of the 'REES' Real Estate Innovation Initiative, designed to attract technology firms and unlock new opportunities for innovative real estate products. It aims to promote transparency and governance and enable a wider pool of investors to participate in large-scale real estate projects in Dubai.
The Real Estate Tokenisation Project seeks to attract global technology firms and open new investment opportunities for the investor market. It aims to diversify property ownership by allowing multiple investors to co-own a single property through tokenised real estate assets. Additionally, the project strengthens Dubai's position as a regional and global hub for virtual assets, enhancing its competitiveness on both local and international levels.