Dubai is transforming real estate investment through a government-backed tokenization initiative, introducing a new model of ownership built on blockchain technology and regulatory oversight.
With a minimum investment of just AED 2,000, individuals can gain fractional ownership in one of the world’s most competitive property markets marking a significant shift toward greater accessibility and legal transparency.
Supported by the Dubai Land Department, the Virtual Assets Regulatory Authority and the UAE Central Bank, this initiative introduces fractional property ownership through digital tokens. It marks a fundamental shift in the region’s real estate landscape broadening access to investment and redefining traditional ownership structures.
How Property Tokenization Works
Dubai’s tokenized real estate framework is facilitated through platforms licensed by the Virtual Assets Regulatory Authority, operating under a robust regulatory structure that prioritizes transparency, security, and legal validity.
To participate, eligible investors UAE residents aged 18 or older holding a valid Emirates ID are required to complete Know Your Customer verification. Once verified, they can access platforms such as mint.prypco.com to review a diverse portfolio of properties, accompanied by comprehensive details including pricing, risk assessments, and technical specifications.
Upon making an investment starting from as little as AED 2,000 the transaction is executed in UAE Dirhams. The property is subsequently fractionalized into digital tokens recorded on the XRP Ledger blockchain. Each token is formally connected to the Dubai Land Department’s official registry through a Property Token Ownership Certificate, providing legal recognition and enforceability under UAE law.
Ownership is structured across two layers: digital wallets on the blockchain managed by the licensed platform, and formal documentation issued by the Dubai Land Department. This dual system ensures that investors gain the advantages of blockchain’s efficiency and transparency, while retaining the legal security associated with conventional title deeds.
Why This Model Was Introduced
Tokenization aims to do more than digitize assets; it seeks to redefine the investment landscape altogether. In a market where the average villa is valued at approximately AED 6 million, this model significantly reduces the entry threshold. With a minimum investment of just AED 2,000 reflecting a 99.97% decrease in entry cost it enables broader access to premium real estate for middle-income and retail investors.
This broadened access is reinforced by a comprehensive regulatory framework. Platforms licensed under the system are required to implement stringent Know Your Customer and Anti-Money Laundering protocols, with all transactions subject to thorough monitoring and documentation. Furthermore, these entities must retain transaction records for a minimum of eight years, ensuring sustained transparency and oversight.
To promote equitable ownership and mitigate concentration risk, individual investment in any single property is limited to a maximum of 20%.
Key Advantages of Tokenized Investment
Tokenization overcomes several inherent limitations of conventional real estate investment, with enhanced liquidity being one of its key benefits. By breaking down properties into fractional units, it facilitates secondary market trading, offering investors greater flexibility and ease of exit compared to traditional property transactions.
The reduced capital requirement allows younger generations to access property ownership more easily. Meanwhile, smart contracts and automated systems simplify the transaction process by eliminating intermediaries, leading to quicker, more efficient, and cost-effective deals.
Another key advantage lies in the enhanced security of the system. Every transaction is permanently recorded on an immutable blockchain ledger, creating a transparent and tamper-resistant ownership record. This structure strengthens investor confidence and substantially lowers the risk of fraudulent activity.
Investment Costs and Market Potential
Investments in tokenized real estate are subject to certain fees, including a 2% entry fee, a 1% exit fee, and an annual management charge of 0.5%. In cases where the property’s value increases, a capital appreciation fee of up to 15% may apply. Notably, these transactions benefit from a reduced Dubai Land Department fee of 2%, compared to the standard 4% applied to conventional real estate deals.
These operational efficiencies align with broader market dynamics. In May 2025, Dubai’s real estate sector recorded AED 66.8 billion in sales, underscoring sustained investor confidence. Projections suggest that by 2033, tokenized assets could represent as much as 7% of the overall property market amounting to approximately AED 60 billion.
The Future of Real Estate Investment
Dubai’s pilot initiative represents more than just a technological advancement; it offers a forward-looking vision for the future of real estate. As regulatory frameworks develop and smart contracts achieve formal legal recognition, tokenized platforms are poised to become a standard feature of the property market rather than an emerging alternative.
One Investments is committed to advancing initiatives that enhance Dubai’s standing as a world-class destination. With a strategic emphasis on sustained capital growth, we connect clients to premium properties that offer both refined living and long-term value.
