Dubai started the real estate tokenization pilot, the $ 16B market forecasts by 2033
The Dubai Land Department (DLD), a government agency for the real estate real estate industry, said it started a real estate tokenization pilot program, claiming the first authority to register in the Middle East to use blockchain technology for the works of the title.
The initiative was developed with the Digital Assets Watchdog Virtual Asset Regulatory Authority (VARA) and Dubai Future Foundation (DFF). The project aligned with the 2033 approach to Dubai’s real estate and greater efforts to strengthen its position as a global technology hub.
The department hoped that tokenized real estate could account for 7% of total city -owned transactions, reaching 60 billion Dirham ($ 16 billion) by 2033.
Dubai’s pushing into real estate tokenization reflects a growing course of blockchain integration in traditional markets, putting real-world assets (RWA) such as bonds, funds and credits on crypto metals.
Digital versions of the RWA token can be fractionally owned and transferred to blockchain, lowering entry barriers for investors and increasing liquidity in the market. Unlike Crowdfunding, which is a pool of investor funds for property purchases, the tokenization provides a more structured model of owner. However, a McKinsey Tokenization Report Last year real estate was listed as one of the classes that could face a slower adoption of growth tokenization due to operational barriers.
Marwan Ahmed Bin Ghalita, director of the DLD Director, said the initiative would “simplify and enhance the processes of purchase, sale and investment” in local real estate, and the department is interacting with technology companies to refine the project before it is scanning.
