Dubai’s Real Estate Boom Signals Readiness for Tokenization
Dubai’s property market is making headlines with record-breaking sales figures and a growing push toward real estate tokenization. In May 2025, the city’s real estate sector achieved a staggering $18.2 billion in sales across 18,700 transactions, marking a 44% year-on-year increase in transaction value. This surge reflects investor confidence and highlights Dubai’s readiness for blockchain-based property innovation.
Scott Thiel, co-founder and CEO of Tokinvest, emphasized the significance of these developments, stating, “Dubai is becoming one of the most active and attractive real estate markets globally. When you see 60 billion dirhams in transactions in a single month, it’s a strong signal that the market is liquid, dynamic, and ready for innovation.”
Real estate tokenization, which involves dividing properties into smaller, more affordable shares, is gaining traction as a way to democratize property ownership and attract international investors. Thiel added, “Tokenization won’t just accompany the next record; we believe it will help drive it.”
Regulatory Momentum and Blockchain Deals in Dubai
Dubai’s regulatory landscape is evolving to support real estate tokenization. On May 19, the Virtual Asset Regulatory Authority (VARA) updated its guidelines to provide clarity for issuers and exchanges launching tokenized real estate assets. Additionally, the Dubai Land Department (DLD) partnered with the Central Bank of the UAE and the Dubai Future Foundation to unveil a platform enabling investors to purchase tokenized shares in ready-to-own properties.
A landmark $3 billion blockchain deal was also signed between Dubai’s MultiBank Group, MAG, and Mavryk, bringing luxury real estate projects onto a regulated RWA marketplace. These developments underscore Dubai’s ambition to lead the global tokenized property market.
Saudi Arabia’s First Tokenized Real Estate Transaction
Saudi Arabia is following suit with its first-ever tokenized real estate transaction, led by droppRWA and RAFAL Real Estate. This initiative aims to introduce fractional ownership of high-value properties, allowing citizens to invest with amounts as low as single-digit Riyals. The project aligns with Vision 2030’s goals of financial inclusion and digital transformation.
Faisal Al Monai, co-founder of droppRWA, described the transaction as a “paradigm shift,” stating, “Around the world, we are witnessing the greatest digital transformation of the 21st century—the transformation of capital itself. Starting at just 1 Riyal, you can own a piece of Vision 2030.”
RAFAL CEO Elias Abousamra added, “This partnership is about democratizing real estate investment and creating a global platform for foreign direct investment into the promising Saudi market. For the first time, a young Saudi can own a piece of a premium development with just a few Riyals.”
Why Real Estate Tokenization Matters
Real estate tokenization is poised to revolutionize the property market by addressing inefficiencies, reducing administrative costs, and expanding access to retail investors. Deloitte predicts that $4 trillion worth of real estate will be tokenized by 2035, growing from less than $0.3 trillion in 2024.
Tokenization enables fractional ownership, allowing investors to diversify their portfolios and access previously inaccessible markets. It also facilitates real-time data reporting, enhanced liquidity, and cost savings in tasks like origination and securitization. For example, Figure Technologies estimates savings of $850 per $100,000 mortgage through blockchain-based processes.
The Road Ahead for Tokenized Real Estate
As blockchain technology advances, tokenized marketplaces are emerging to provide real-time visibility into asset performance. Platforms like World Property Exchange, Redswan, and Securitize are paving the way for seamless trading and investment in tokenized assets.
However, challenges remain, including regulatory uncertainty and the need for interconnected blockchain ecosystems. Early adopters must test the waters and establish frameworks for compliance and risk management.
Real estate tokenization represents a transformative opportunity for investors and asset managers alike. As Dubai and Saudi Arabia lead the charge, the global property market is set to embrace blockchain innovation, reshaping the future of real estate investment.
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