- Dubai’s $399M in tokenized real estate sales highlights rising investor interest and growing traction for fractional property ownership.
- A 314% surge in primary sales and $18.2B in total deals show Dubai’s real estate is primed for blockchain-powered expansion.
- Strong regulatory support and major RWA deals are accelerating Dubai’s transformation into a global tokenized real estate hub.
As per Cointelegraph X, Dubai’s real estate market surged in May, hitting 66.8 billion dirhams ($18.2 billion) in total sales. The market recorded 18,700 transactions, marking a 44% year-on-year rise in transaction value. Moreover, property tokenization reached a milestone, accounting for $399 million or 17.4% of all sales. These numbers reflect increased investor confidence and readiness for digital asset integration. Significantly, primary market activity soared 314% in value compared to May 2024. Meanwhile, secondary sales grew 21%, underscoring robust market momentum on both fronts.
Tokenization Gathers Pace in Dubai
Besides traditional sales, tokenization is shaping Dubai’s property landscape. Investors are now leaning into fractional ownership as a viable model. Consequently, smaller capital holders can access real estate through affordable digital shares. This shift not only democratizes access but also injects more liquidity into the market.
Scott Thiel, CEO of Tokinvest, said the boom signals Dubai’s position as a global leader in real estate innovation. He added that tokenization is no longer futuristic. It is actively reshaping investment structures and ownership models. Hence, Dubai’s monthly transaction value highlights readiness for advanced real estate strategies.
Moreover, Thiel noted that tokenization will not merely follow market growth. Instead, it will drive the next wave of expansion. The growing trend is already unlocking new channels for both local and international investors.
Regulatory Backing Fuels Adoption
Regulatory support also plays a vital role. On May 1, MAG, MultiBank Group, and Mavryk signed a $3 billion RWA deal. This partnership aims to tokenize MAG’s luxury real estate through a compliant blockchain-based marketplace. Additionally, Dubai’s crypto regulator, VARA, updated its guidelines on May 19 to support RWA tokenization.
Furthermore, on May 25, key institutions launched a new platform for tokenized property shares. The Dubai Land Department, Central Bank of the UAE, and Dubai Future Foundation backed the initiative. This platform enables investors to purchase shares in ready-to-own properties.
