DLD launches pilot phase of the ‘Real Estate Tokenisation Project'
Gulf Today
As part of its ongoing efforts to strengthen Dubai's position as a global leader in property technology, and in line with the Dubai Real Estate Sector Strategy 2033, 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. 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 groundbreaking initiative will drive significant growth in the real estate tokenisation sector, with its market value projected to reach Dhs 60 billion by 2033, representing 7% of Dubai's total real estate transactions.
As part of this initiative, DLD organised a specialised 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, said:
'Amid rapid technological advancements and the increasing reliance on digital solutions, real estate tokenisation emerges as a revolutionary tool driving fundamental change in the real estate sector. By converting real estate assets into digital tokens recorded on blockchain technology, tokenisation simplifies and enhances buying, selling, and investment processes. This aligns perfectly with Dubai Land Department's vision to achieve global leadership in real estate investment, leverage technology to develop innovative real estate products, and foster an ecosystem that supports real estate innovation.'
He added: 'This pioneering project is part of the recently launched 'REES' Real Estate Innovation Initiative, designed to attract diverse technology firms. It aligns with our strategy to unlock new opportunities for innovative real estate products, enhance property sector innovation, promote transparency and governance, and enable a wider pool of investors to participate in large-scale real estate projects in Dubai.
We are pleased to collaborate with partners from both the public and private sectors to advance the real estate industry's digital ecosystem and enhance our operations' efficiency and effectiveness. 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.'
The Real Estate Tokenisation Project aims to attract global technology firms and open new investment opportunities for the investor market. It seeks 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. It also promotes investment awareness in virtual asset services and products, encourages real estate innovation, and supports the development of cutting-edge solutions in the sector. Furthermore, the initiative contributes to attracting investments and virtual asset companies to establish their operations in Dubai while ensuring the necessary regulatory frameworks are in place to protect investors and stakeholders.
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. This innovative 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.
Dubai Land Department continues its commitment to achieving the objectives of the Dubai Economic Agenda D33, which prioritises adopting digital solutions. Dubai is shaping a smart and advanced economy built on leadership, sustainability, and growth driven by knowledge, innovation, and future technologies. This reinforces the emirate's global competitiveness and solidifies its position as a leading hub for the world's most thriving digital economy.
Meanwhile Dubai Land Department (DLD) and REACH, a globally recognised real estate technology accelerator backed by the National Association of REALTORS (NAR), have recently signed a landmark partnership to launch REACH Middle East. The pioneering initiative aims to attract emerging proptech companies to Dubai and the region while driving innovation in the real estate sector.
Staff Reporter, Gulf Today
As part of its ongoing efforts to strengthen Dubai's position as a global leader in property technology, and in line with the Dubai Real Estate Sector Strategy 2033, 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. 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 groundbreaking initiative will drive significant growth in the real estate tokenisation sector, with its market value projected to reach Dhs 60 billion by 2033, representing 7% of Dubai's total real estate transactions.
As part of this initiative, DLD organised a specialised 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, said:
'Amid rapid technological advancements and the increasing reliance on digital solutions, real estate tokenisation emerges as a revolutionary tool driving fundamental change in the real estate sector. By converting real estate assets into digital tokens recorded on blockchain technology, tokenisation simplifies and enhances buying, selling, and investment processes. This aligns perfectly with Dubai Land Department's vision to achieve global leadership in real estate investment, leverage technology to develop innovative real estate products, and foster an ecosystem that supports real estate innovation.'
He added: 'This pioneering project is part of the recently launched 'REES' Real Estate Innovation Initiative, designed to attract diverse technology firms. It aligns with our strategy to unlock new opportunities for innovative real estate products, enhance property sector innovation, promote transparency and governance, and enable a wider pool of investors to participate in large-scale real estate projects in Dubai.
We are pleased to collaborate with partners from both the public and private sectors to advance the real estate industry's digital ecosystem and enhance our operations' efficiency and effectiveness. 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.'
The Real Estate Tokenisation Project aims to attract global technology firms and open new investment opportunities for the investor market. It seeks 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. It also promotes investment awareness in virtual asset services and products, encourages real estate innovation, and supports the development of cutting-edge solutions in the sector. Furthermore, the initiative contributes to attracting investments and virtual asset companies to establish their operations in Dubai while ensuring the necessary regulatory frameworks are in place to protect investors and stakeholders.
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. This innovative 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.
Dubai Land Department continues its commitment to achieving the objectives of the Dubai Economic Agenda D33, which prioritises adopting digital solutions. Dubai is shaping a smart and advanced economy built on leadership, sustainability, and growth driven by knowledge, innovation, and future technologies. This reinforces the emirate's global competitiveness and solidifies its position as a leading hub for the world's most thriving digital economy.
Meanwhile Dubai Land Department (DLD) and REACH, a globally recognised real estate technology accelerator backed by the National Association of REALTORS (NAR), have recently signed a landmark partnership to launch REACH Middle East. The pioneering initiative aims to attract emerging proptech companies to Dubai and the region while driving innovation in the real estate sector.
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