Dubai has enhanced the amount of investment that flows into its real-estate market with its new tokenization project. During a statement, Dr. Mahmoud AlBurai, Senior Director of Real Estate Policies and Innovation at Dubai Land Department, indicated that 68 percent of the 1,025 investors who joined funding the five tokenized properties were first-time buyers of real-estate.
This number emphasizes the ability of property tokenization to yield new investors, as the market becomes democratized, and the process of participation becomes easier and less costly.
Five Dubai properties were sold in a very short time
AlBurai posted on LinkedIn, saying that recent investments in two new tokensized properties were a great success today when funding was experienced in two luxurious properties. He further stated that, cumulatively through the five tokenized properties so far, 1,025 investors comprising of 69 nationalities had invested an average of US$2,432 on average, out of which 685 were first-time buyers.
A Fitch rating report released in May 2025 showed Dubai real-estate prices increased by 60 percent between 2022 and the first quarter of 2025. Fitch also foresees a mild price correction of up to 15 percent in the second half of 2025 and 2026 due to an overload in deliveries of 210,000 units in 2025 and 2026, compared with the last three years.
Dubai has long been a leader in the digitalization of government services and was one of the first to publish its blockchain strategy, and the UAE became the first country in the MENA region to announce its strategy in the digital economy as part of the Dubai Economic Agenda D33. The emirate has now proceeded with this agenda by introducing extensive virtual asset regulations, stable coin regulations, and lastly, a tokenization of real estate assets.
Dubai Land Department (DLD) initiated the pilot phase of the Real Estate Tokenization Project in May 2023. DLD is collaborating with Dubai regulatory authority VARA and Dubai Future Foundation. The aim is to make the property deeds digital tokens.
In May, DLD has already financed five real estate projects with its PRYPCO Mint platform, which is driven by the XRP Ledger and facilitated by Ctrl Alt.
DLD anticipates that the tokenization of real estate business will reach a market size of 16 billion dollars by the year 2033, which is roughly 7 percent of the overall real estate transactions in Dubai.
The market of tokenized real estate is expanding rapidly worldwide. According to ScienceSoft, the industry is projected to grow to 3 trillion dollars in 2039 (or 15 % of total global real estate under management).
In a report, EY asserts that tokenized real estate is important since it enables worldwide investors to access it easily and safely, increases the investor base, and facilitates cross-border investments. According to EY, the global real estate market will be valued at $280 trillion and the assets under management will be around 3.7 trillion in 2039. According to EY, tokenization will open a substantial share of this market to foreign investors.
Dubai seems to be heading somewhere big: the digitalization of the economy and the liberalization of its real estate market to invite more international investors and first-time buyers.
News Source – https://www.cryptopolitan.com/68-dubai-tokenized-real-estate-first-buyers/
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