Dubai’s real estate market is undergoing a significant transformation, with tokenisation gaining traction. In May alone, property sales processed through blockchain-based platforms exceeded $399 million, which represents 17.4% of the total real estate transactions for the month. This shift towards digitised ownership models highlights a growing trend in the market.

The developments in Dubai’s real estate are supported by new regulatory guidance along with government-backed infrastructure that promotes tokenised real-world assets (RWAs). This regulatory framework is paving the way for deeper institutional participation in the market.

On 19 May, the Virtual Assets Regulatory Authority (VARA) updated its framework to include tokenised RWAs, providing legal clarity to projects that fractionalise physical assets, such as real estate, using blockchain technology. The update mandates that tokenised property platforms comply with the same standards for compliance and disclosure as other virtual asset services operating in Dubai. This move is expected to reduce regulatory uncertainty and may attract further investments from institutional players looking to diversify their portfolios with fractionalised property assets.

On 25 May, the Dubai Land Department (DLD), in collaboration with the Central Bank of the UAE and the Dubai Future Foundation, launched a dedicated platform for tokenised property sales. This initiative allows access to secondary-market real estate through blockchain-based tokens that represent fractional ownership. It enables both retail and institutional investors to participate in the market with significantly lower capital requirements.

The launch of this platform is part of Dubai’s broader digital asset strategy, aimed at establishing the city as a leading regional hub for tokenised finance. The platform is designed to enhance transparency in property transactions, reduce administrative costs, and increase liquidity in a traditionally illiquid market segment.

According to Cointelegraph, Dubai’s total real estate sales in May reached 66.8 billion dirhams, equivalent to approximately $18.2 billion, across 18,700 transactions. Tokenised property sales accounted for 17.4% of these deals, with a total value of $399 million. This level of activity underscores the increasing appeal of digital ownership structures in one of the world’s most active real estate markets.

Demand for tokenised properties is being driven by various factors, including growing familiarity with digital assets, increased regulatory clarity, and the allure of fractionalised investment opportunities in high-value properties. Analysts believe that the rising adoption of tokenised property models could enhance market liquidity and enable more dynamic pricing over time.

Institutional interest in tokenised real estate investments is also on the rise, as asset managers, fintech firms, and sovereign wealth funds explore these opportunities in Dubai’s clear regulatory landscape. The integration of blockchain technology into government-led initiatives creates an attractive environment for investment.

The underlying technology supporting tokenisation has matured, with platforms now offering enhanced security features, verified ownership trails, and compliance automation. This evolution indicates that tokenised property investment is becoming feasible at scale. Although challenges related to cross-border legal recognition and liquidity management remain, Dubai’s proactive approach signifies its intention to lead in shaping the future of real estate finance. With established policies and state-sponsored infrastructure, Dubai is positioning itself as a model for other cities aiming to combine traditional real estate with emerging digital asset frameworks.