Dubai Land Department launches pilot phase of ‘Real Estate Token Project’

Dubai Land Department (DLD) has started the pilot phase of its ‘Real Estate Tokenisation Project.’ This makes DLD the first real estate registration body in the Middle East to use tokenisation for property ownership. The project is part of DLD’s larger ‘REES’ Real Estate Innovation Initiative, which aims to bring new technology into the property sector.

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The project is being done in partnership with the Dubai Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF) through SandBox Real Estate. This team-up brings together experts from both the public and private sectors to create a new way of owning and investing in property. The goal is to make Dubai a leader in real estate technology.

DLD expects this project to increase the value of tokenised real estate deals. By 2033, tokenised property transactions in Dubai could reach AED 60 billion. This would be around 7% of the city’s total real estate market. The project aims to make property investment easier, faster, and open to more people.

As part of this pilot phase, DLD hosted a workshop on ‘Real Estate Tokenisation.’ The event brought together experts and property technology companies from around the world. The workshop explored how tokenised property can change the real estate market.

Eng. Marwan Ahmed Bin Ghalita, Director-General of DLD, said that this project will bring big changes to the property sector. He explained that real estate tokenisation turns property into digital tokens using blockchain technology. This allows property to be divided into smaller, tradable digital shares. It makes buying, selling, and investing easier and faster.

Bin Ghalita said the project matches DLD’s goal of making Dubai a global leader in real estate investment. He added that the project will attract tech companies and create new property products.

He also explained that tokenisation will improve trust and safety in real estate deals. Property ownership records will be stored on a blockchain, making them secure and easy to check. Smaller investors will also be able to own shares in large real estate projects through digital tokens.

The project is also expected to boost Dubai’s role as a key player in virtual assets. It will promote more investment in virtual property services and products. It will also support the growth of real estate technology startups and bring new solutions to the market.

After the pilot phase, DLD will review the results and use the feedback to improve the project. The goal is to fully launch the project, creating a safe, fast, and simple way to buy and sell real estate through digital tokens.