Dubai: DLD, VARA ink key agreement to integrate property tokenisation
The Dubai Land Department (
The agreement, the first of its kind globally, will incorporate a governance system that ties Dubai's property registry with property tokenisation.
This will not only streamline real estate transactions but also provide a framework for regulatory clarity and safeguard investor rights in the evolving digital landscape.
DLD-VARA collab to strengthen Dubai's global real estate position
The collaboration follows the successful launch of the pilot phase of the 'Real Estate Tokenisation Project' by DLD, part of the broader 'REES Real Estate Innovation Initiative'.
The agreement aims to bolster the legal framework and regulations in real estate transactions, ensuring investor protection while fostering a more inclusive investment environment.
Marwan bin Ghalita, director general of the Dubai Land Department, said: 'This partnership is a strategic step toward empowering the real estate sector by leveraging technological advancements. It aligns with the Dubai Real Estate Strategy 2033 and the Dubai Economic Agenda (D33), aiming to enhance Dubai's global leadership in real estate innovation.'
The integration of virtual assets into real estate transactions is expected to improve liquidity and offer new investment opportunities, particularly for smaller investors, while contributing to the sector's sustainability.
Support for Dubai's strategic vision
The collaboration is set to play a pivotal role in achieving the objectives of Dubai's D33 economic agenda, which aims to double the city's GDP by 2033.
The agreement aligns with D33's goal of reaching Dhs1tn in real estate transactions, with the sector growing by 70 per cent in value.
Helal Al Marri, director general of the Dubai Department of Economy and Tourism (DET) and Dubai World Trade Centre Authority (DWTCA), remarked: 'This partnership embodies Dubai's future-focused innovation. By linking real estate and virtual assets, DLD and VARA will help shape the next generation of economic growth, ensuring that Dubai remains a global leader in both sectors.'
The initiative will also serve as a framework for pilot projects, assessing and managing risks while fostering the integration of virtual assets into the real estate sector to maximise economic benefits.
It aims to create new opportunities for fractionalised ownership and enhance investor participation.
Image courtesy: Dubai Media Office
Advancing digital infrastructure
The agreement places a strong emphasis on enhancing Dubai's digital infrastructure, addressing investor needs, and aligning with global best practices for consumer protection and investment security.
It also encourages collaboration with technology companies looking to contribute to the sector's advancement.
'This collaboration reinforces Dubai's commitment to fostering a diverse and advanced investment ecosystem,' Al Marri added. 'It sets the stage for the future economy, where real estate and virtual assets coexist, driving sustainable growth and making Dubai a knowledge-driven, technology-based leader.'
The DLD and VARA's partnership is poised to establish a regulatory model for integrating virtual assets with real-world assets, opening new doors for innovation in the
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Kalpesh Kinariwala founder, Pantheon Development Tokenisation is a seismic shift in the luxury real estate landscape. Over the next five to ten years, this technology will lower investment barriers and enable fractional ownership of high-value assets. By leveraging blockchain's security and transparency, tokenisation will democratise access to premium properties, attract new classes of investors, and create a more liquid, globally connected market. We are confident that tokenisation will become mainstream in the UAE, thanks to the region's forward-thinking regulatory initiatives and robust appetite for technological innovation. Our advanced R&D investments affirm our commitment to supporting and shaping this evolution into a secure, scalable investment ecosystem. Today, Dubai has become a hotbed for fractional ownership of high-end properties. The Dubai Land Department, in partnership with the Virtual Assets Regulatory Authority and Dubai Future Foundation, launched a regulated tokenisation pilot this year — opening access to premium properties in areas like Palm Jumeirah, Downtown, and Emirates Hills. According to a 2025 report by Dubai's Department of Economy and Tourism, tokenised residential assets are forecast to represent Dhs60bn in transactions by 2033, accounting for approximately 7 per cent of the emirate's real estate market. This growth is being driven by both local and foreign retail investors entering with as little as Dhs 500, gaining exposure to assets previously reserved for the ultra-wealthy. Commercial and mixed-use properties are also steadily gaining traction in the tokenisation ecosystem. Office buildings, retail strips, and multi-purpose developments are being fractionalised primarily for their predictable rental yields and long-term tenant contracts. Developers are leveraging tokenisation not only as a sales tool, but also as a financing mechanism — avoiding traditional debt structures. Shabana Farooq , m anaging partner and COO, URBAN Properties Innovation has always been at the heart of the real estate industry, from how we list and market properties to how we close deals and build client relationships. Tokenisation is the next evolution in that journey. We're constantly seeking smarter, faster, and more transparent ways to connect buyers with the right opportunities — and this technology allows us to do just that. It opens the door to a wider investor pool, fractional ownership models, and quicker transactions. Ultimately, it's about making real estate more accessible and engaging for today's digital-first customer. It won't replace the human element, but it will definitely enhance how we sell, communicate, and deliver value. Rakesh Mirchandani co-founder of RRS International Development and partner at RRS Capital ManagementProperties With Dubai leading as the first emirate to regulate real estate tokenisation, we're entering a new era of property investment. It offers a more accessible, hassle-free way to own and manage real estate — perfect for Gen Z, Gen Alpha and all those who prefer digital, blockchain-enabled solutions. Investors can start from just Dhs2,000 (approx. $545) and still proudly hold real estate while diversifying across other asset classes. While the concept is still new and comes with a learning curve, the benefits for both sides— greater transparency, global liquidity, and ease of ownership — make it an exciting and strong option, even for cautious investors and those who are traditionally risk averse. As this ecosystem grows we will educate ourselves to invest better. Captain Pradeep Singh , founder, Karma Developers Tokenisation will democratise real estate by enabling fractional ownership, increasing liquidity, and opening access to global investors. Given the right regulatory framework, we can expect it to evolve from a niche innovation to a mainstream investment vehicle — much like how REITs reshaped real estate decades ago. The UAE is already laying the groundwork, from the Dubai Land Department's pilot tokenisation project to VARA's regulatory frameworks. For tokenisation to scale, continued enhancements in regulatory clarity will further accelerate adoption, along with robust secondary markets and greater education among traditional stakeholders. So far, high-value residential and hospitality assets are leading the charge. There's growing interest in branded residences and lifestyle-led developments for tokenisation, particularly among younger, tech-savvy investors. However, as tokenisation becomes more mainstream than novelty, efficiencies would result in assets with good rental returns having higher trading volumes. For developers, tokenisation unlocks faster access to capital and broadens the investor base. For investors, it offers lower entry points, enhanced liquidity, and real-time transparency. We are still in the process of evaluating and understanding the advantages and challenges of smart contracts. Globally, one of the key challenges remains the lack of universal legal recognition — many jurisdictions don't treat them as fully enforceable contracts. Traditional agreements benefit from established legal frameworks, while smart contracts rely solely on code, which can be prone to errors with significant consequences. That said, smart contracts in Dubai's real estate sector offer significant potential for automation, transparency, and cost efficiency. However, as mentioned, adoption is in early stages and largely concentrated in tech-forward projects. Widespread implementation will depend on regulatory updates, increased stakeholder awareness, and seamless integration with DLD and other official platforms. The Gulf — and Dubai in particular — is leading the region in embracing tokenisation. Initiatives like the DLD's Real Estate Evolution Space and Riz Ahmed CEO, SmartCrowd In the next five to 10 years, real estate will exist as on-chain tokens backed by income-generating assets — programmable, tradable, and transparent. At SmartCrowd, we laid the foundation for this transformation through fractional ownership. Tokenisation builds on that, embedding real estate into blockchain to create digital assets that can be traded in real time, with smart contracts automating governance, compliance, and distribution. Unlike traditional platforms, settlement can now happen in minutes, not months. Dubai is no longer experimenting—it's implementing. With the Dubai Land Department issuing Tokenisation Certificates and VARA regulating virtual assets, the infrastructure is validated and government-backed. This is not just a tech innovation; it's an institutional-grade investment channel. Tokenisation will go mainstream not because it's trendy, but because it's better, merging the transparency of blockchain, the flexibility of fintech, and the legal robustness of traditional real estate. That said, education is key. Many still confuse tokenised real estate with crypto speculation. In reality, it's underpinned by tangible, income-producing assets with regulatory oversight. The idea that it's unregulated or untested couldn't be further from the truth — platforms like ours have proven the model works. Secondary residential properties are currently the most viable asset class due to title clarity, income track record, and regulatory ease. The biggest draw for developers is liquidity — tokenisation unlocks faster access to capital and reduces reliance on institutional buyers. For investors, it offers lower entry points, transparency, and the potential for real-time exits. What's needed next is deeper integration with mainstream finance apps, broader institutional participation, and continued regulatory collaboration. The UAE is setting the global playbook for tokenised real estate, and we're proud to help drive that change from the ground up. Looking ahead As the UAE cements its position as a global innovator in tokenised real estate, the road ahead lies in scaling adoption through education, regulation, and trust. With the right framework, what began as a tech-forward experiment could soon redefine the core of property ownership, investment, and access — not just in Dubai, but worldwide.
