Dubai real estate records $399 million in tokenised property sales in May

Dubai’s real estate market is witnessing a transformation as tokenisation gains traction, with more than $399 million in property sales processed through blockchain-based platforms in May alone.

The figure represents 17.4% of total real estate transactions for the month, highlighting a growing shift toward digitised ownership models.

These developments are underpinned by new regulatory guidance and government-backed infrastructure that support tokenised real-world assets (RWAs), setting the stage for deeper institutional participation.

VARA adds RWA token rules

The Virtual Asset Regulatory Authority (VARA), Dubai’s main crypto regulator, has formally integrated real-world asset tokenisation into its oversight structure.

On 19 May, VARA updated its framework to accommodate tokenised RWAs, giving legal clarity to projects that fractionalise physical assets like real estate via blockchain.

The regulatory update ensures that tokenised property platforms must now adhere to the same compliance and disclosure standards as other virtual asset services operating in Dubai.

This is expected to reduce regulatory uncertainty for market participants and may encourage further investment from institutional players looking to diversify their portfolios with fractionalised property assets.

Dubai launches RWA platform

On 25 May, the Dubai Land Department (DLD), in partnership with the Central Bank of the UAE and the Dubai Future Foundation, unveiled a dedicated platform for tokenised property sales.

The initiative provides access to secondary-market real estate through blockchain-based tokens that represent fractional ownership, enabling retail and institutional investors to enter the market with significantly lower capital requirements.

The launch of the platform is part of Dubai’s broader digital asset strategy, which seeks to position the city as a regional hub for tokenised finance.

The platform aims to enhance transparency in property transactions, reduce administrative costs, and increase liquidity in a traditionally illiquid market segment.

$18.2B in May sales

According to Cointelegraph, Dubai’s total real estate sales in May amounted to 66.8 billion dirhams, or roughly $18.2 billion, across 18,700 transactions.

Tokenised property sales alone accounted for 17.4% of these deals, with a cumulative value of $399 million.

This level of activity highlights the growing appeal of digital ownership structures in one of the world’s most active real estate markets.

The demand is being driven by several factors, including growing familiarity with digital assets, increased regulatory clarity, and the appeal of fractionalised entry points for high-value properties.

Analysts suggest that the rising adoption of tokenised property models could improve market liquidity and facilitate more dynamic pricing in the long run.

Institutional demand grows

Institutional players are increasingly showing interest in tokenised real estate as part of their RWA investment strategies.

Dubai’s clear regulatory stance and the integration of blockchain into government-led initiatives make it an attractive environment for asset managers, fintech firms, and sovereign wealth funds exploring tokenisation.

The underlying technology has also matured. Platforms now offer enhanced security features, verified ownership trails, and compliance automation that make tokenised property investment feasible at scale.

As a result, Dubai’s tokenised property segment is evolving beyond experimental pilots and is rapidly becoming a mainstream investment category.

While tokenisation still faces challenges related to cross-border legal recognition and liquidity management, Dubai’s approach signals an intent to lead in shaping the future of real estate finance.

With clear policies and state-sponsored infrastructure in place, Dubai is positioning itself as a model for cities looking to merge traditional real estate with emerging digital asset frameworks.

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