Dubai Real Estate Tokenization: How to Invest from Just $545

Through real estate tokenization, properties are converted into digital tokens, enabling faster, more flexible, and more accessible investment opportunities—all within a secure, regulated blockchain ecosystem.

But how does it work, and what does it mean for investors? Here’s everything you need to know.

How Tokenized Real Estate Works in Dubai

Dubai’s tokenized property system operates through platforms licensed by the Virtual Assets Regulatory Authority (VARA).

Who Can Invest?

• UAE residents aged 18+ with a valid Emirates ID

• Investors must complete KYC (Know Your Customer) verification

The Investment Process

1. Access the Platform: Visit an approved portal like 

2. Browse Properties: Explore detailed listings, including pricing, risk factors, and minimum investment requirements

3. Make an Investment: Start with as little as AED 2,000 ($545)

4. Complete the Transaction: Payments are made in UAE Dirhams (AED) during the pilot phase (no cryptocurrency required)

5. Receive Tokens: Ownership is recorded on the XRP Ledger blockchain, integrated with Dubai’s official land registry

Each property is divided into digital tokens, with legal ownership backed by Property Token Ownership Certificates issued by the Dubai Land Department (DLD).

“Buyers hold their tokens in digital wallets provided by the licensed platform. The DLD ensures ownership is both digitally secure and legally recognized,” says Zacky Sajjad, Director of Business Development at Cavendish Maxwell.

Why Dubai Launched Real Estate Tokenization

Developed by VARA, DLD, the UAE Central Bank, and the Dubai Future Foundation, this initiative is more than just a tech experiment—it’s a complete reimagining of real estate investment.

Key Benefits

Fractional Ownership: Invest in high-value properties with minimal capital
Increased Liquidity: Tokens can be traded on secondary markets
Lower Entry Costs: From AED 2,000 vs. traditional property purchases
Faster Transactions: Smart contracts reduce paperwork and intermediaries
Enhanced Security: Blockchain ensures transparency and fraud prevention

“This model democratizes real estate, allowing middle-class investors to own fractions of premium properties,” explains P.P. Varghese, Head of Professional Services at Cushman & Wakefield Core.

Costs & Fees

Investing in tokenized property comes with structured fees:

• 2% investment fee

• 1% exit fee when selling

• 0.5% annual management fee

• Up to 15% capital appreciation fee (if the property value increases)

• Reduced DLD fee (2% vs. traditional 4%)

Future of Tokenized Real Estate in Dubai

Dubai’s real estate market remains strong, with AED 66.8 billion in sales in May 2025 alone. The DLD predicts that 7% of the market (AED 60 billion) could be tokenized by 2033.

Potential Challenges

⚠ Limited Secondary Market Liquidity (early platforms may face low trading volumes)
⚠ Shared Decision-Making (majority votes determine sales or changes)
⚠ Current Fiat-Based System (crypto payments may be introduced later)

Despite these hurdles, Dubai’s strategic position, regulatory support, and tech-forward approach position it as a leader in real estate innovation.

“Dubai is at the forefront of blockchain integration in real estate. In the future, most transactions could occur on secure blockchain systems,” says Adela Mues, Partner at Reed Smith.

The Bottom Line

Dubai’s real estate tokenization is a game-changer, making high-value property investment accessible to a broader audience. While still in its early stages, the model has immense potential to reshape the market—both in Dubai and globally.

Interested in investing? Stay tuned for updates as this revolutionary model evolves

Source from ArabianBusiness