Articles by ValuStrat

Tokenisation is a structural shift that’s democratising property investment, lowering entry barriers, and redefining affordability across the region.

Fractional ownership of prime real estate is no longer a theoretical innovation; it’s a live, regulated investment channel. For institutional investors and corporate finance leaders, this shift represents more than a new product; it signals a structural evolution in asset allocation and liquidity management.

Dubai’s real estate market has a history of transformation, from freehold ownership in 2002 to REITs and crowdfunding. Over the past several years, fractional ownership platforms in the UAE have risen, enabling retail investors to access apartments and villas with very low entry points. These models, however, remain limited in scope as they function as closed funds; investors can only exit through the platform and cannot trade publicly.

Tokenisation takes this concept to the next level. Leveraging blockchain enables fractional ownership, instant trade execution, and global accessibility. This is not a retail gimmick; it’s a structural innovation that reduces transaction friction, enhances liquidity, and democratises exposure to high-value assets.

Regulatory alignment is not optional; it is the foundation for successful implementation, and Dubai is ahead of the curve in building that framework. The Dubai Land Department and VARA are implementing measures to ensure tokenised property is legally recognised, secure, and transparent. Importantly, the Dubai Land Department is actively working to register individual token purchases, potentially linking them to title deeds and is eager to create the ecosystem for a fully tokenised market. Licensed platforms such as Prypco Mint allow entry at AED 2,000, with tokens linked to official title deeds and traded in a regulated environment. Early adoption metrics are compelling: an AED 1.75 million villa sold out in under five minutes to 169 investors across 40 countries. Another project closed in 118 seconds. Major developers, Emaar, Binghatti, and DAMAC, are actively exploring tokenisation alongside crypto payment acceptance.

This innovation coincides with strong fundamentals. According to ValuStrat, Dubai’s residential sector posted 23.9% annual growth in Q2 2025, with off-plan transactions driving a 32.3% surge in value compared to the same period last year. The Dubai Land Department projects tokenised real estate could reach AED 60 billion by 2033, a structural shift, not a short-term trend.
Saudi Arabia is moving in parallel. Its Real Estate General Authority has launched a national tokenisation framework and completed its first transaction. Developers like Dar Global are piloting tokenised hospitality assets, aligning with Vision 2030’s digital economy objectives.

Risks remain, valuation complexity, cybersecurity, and regulatory harmonisation, but the trajectory is clear. Tokenisation introduces liquidity to an illiquid asset class, expands investor reach, and accelerates capital recycling. For real estate developers, the question is no longer ‘if’ this will scale, but ‘how’ to leverage it for project funding, faster sales cycles, and global investor access. Beyond residential, there are limitless opportunities to sell sophisticated commercial real estate on this basis, with tokens traded on publicly listed, regulated platforms, effectively creating an experience equivalent to selling shares on a stock exchange.