Dubai advances $16bn property token push

The Dubai Land Department has confirmed that the next phase of its real estate tokenisation initiative, developed with technology firm Ctrl Alt, will allow investors to trade property tokens after initial issuance. The move is designed to create liquidity in what has traditionally been an illiquid asset class, while reinforcing the emirate’s ambition to position itself as a global centre for digital assets.

Under the framework, physical properties are represented as digital tokens on a blockchain, with each token reflecting fractional ownership. Investors can buy and hold these tokens, gaining exposure to rental income and potential capital appreciation. With the introduction of secondary trading, holders will be able to resell their stakes without requiring the full transfer of a property title in the conventional sense.

Officials have described the initiative as part of a broader strategy to modernise land registration and integrate distributed ledger technology into government services. The Dubai Land Department has been working to align the tokenisation model with existing property laws, ensuring that digital records correspond to legally recognised ownership structures.

Ctrl Alt, which specialises in tokenisation infrastructure, has provided the technology layer underpinning the project. The firm’s platform is intended to ensure compliance, investor onboarding and the secure issuance and transfer of tokens. Executives involved in the project have said the aim is to reduce settlement times and lower administrative costs, while maintaining regulatory safeguards.

Dubai’s property market has experienced strong activity over the past two years, driven by an influx of foreign buyers, population growth and sustained demand in the luxury segment. Transaction values have climbed to record levels, according to official data, and developers have accelerated project launches to meet appetite from international investors.

Against this backdrop, tokenisation is being presented as a way to broaden participation. By lowering the minimum investment threshold, fractional ownership could allow smaller investors to enter a market that has historically required significant capital outlay. Proponents argue that digital tokens can make it easier to diversify across multiple properties, rather than committing funds to a single asset.

Regulatory clarity has been central to the rollout. The Dubai Land Department has coordinated with other authorities overseeing digital assets to ensure that tokenised property offerings comply with anti-money laundering standards and investor protection rules. Market participants say such coordination is critical if tokenised real estate is to attract institutional capital as well as retail investors.

Analysts caution, however, that liquidity in secondary markets will depend on sustained demand and transparent pricing. Real estate values can fluctuate, and token prices must reflect underlying asset performance. There are also operational risks linked to technology platforms and custody arrangements, which require robust oversight.

Dubai has pursued an assertive digital asset agenda, introducing frameworks for virtual asset service providers and licensing exchanges. The emirate’s leadership has publicly backed blockchain adoption across sectors, from finance to logistics. Real estate tokenisation is seen as a logical extension of these ambitions, given the scale of the property sector in the local economy.

Globally, tokenised real estate remains in an early stage of development. Pilot projects have emerged in parts of Europe, North America and Asia, but large-scale secondary trading of property tokens is still limited. Industry reports suggest that regulatory uncertainty and fragmented standards have slowed adoption in some jurisdictions.

Supporters of Dubai’s approach argue that government involvement provides credibility and may accelerate uptake. By embedding tokenisation within official land registry processes, authorities aim to bridge the gap between traditional property law and blockchain-based ownership records.

Market participants say the ability to resell tokens could prove decisive. Without a functioning secondary market, fractional ownership models risk locking investors into long holding periods. Enabling trading may help price discovery and improve confidence, particularly if transparent data on rental yields and occupancy rates is made available.

Developers are also watching closely. Tokenisation could open new channels for project financing, allowing them to raise capital from a broader pool of investors. Structured correctly, digital offerings might complement conventional bank lending and off-plan sales.

Critics note that enthusiasm around digital assets has at times outpaced practical implementation. Volatility in cryptocurrency markets over the past few years has underscored the importance of separating speculative trading from asset-backed structures. Officials involved in the Dubai initiative have emphasised that property tokens are linked to tangible real estate, rather than standalone digital coins.