Tokenization is the process of turning physical property ownership into digital tokens on the blockchain. Each token represents a share of an asset that can be bought, sold, or held as an investment. This ensures:
• fractional ownership of objects,
• lower entry threshold,
• increased liquidity,
• fast and transparent trading thanks to blockchain technology.

How tokenization is officially implemented in Dubai

Dubai Land Department (DLD) is a government agency that launched a real estate tokenization pilot in 2025 as part of the Real Estate Innovation Initiative (REES).

The project is being implemented in collaboration with:
• Virtual Assets Regulatory Authority (VARA) — regulates digital assets, including tokens;
• Dubai Future Foundation — supports innovative PropTech projects.

In 2026, DLD also launched the second phase, which introduces the ability to resell tokens on the secondary market (i.e., the market after the initial sale).

Step-by-step tokenization process

1. Asset structuring — a legal structure (usually an SPV or fund) is created in which the object is located.
2. Legal approval — obtaining permits from DLD/VARA.
3. Token issuance — digital tokens are created, each representing a share of ownership.
4. Buy/sell tokens through the platform — investors register on the platform, go through KYC/AML, select shares and buy tokens.

The entire process usually goes through regulated platforms, so it's important to choose only licensed services.

Where to find tokenized objects

Specific platforms and projects are already operating in Dubai:

Main platforms
• PRYPCO Mint is the first licensed real estate tokenization platform approved by the DLD. The minimum entry is about AED 2,000 (approximately ~550 USD).
Tokenized apartments and villas have already been sold through this platform — sometimes offers sold out in minutes.
• SmartCrowd/Stake are fractional investment platforms that are expanding their offer to tokenized shares.

The list will be expanded in the future: large developers are working on tokenizing their own portfolios (for example, DAMAC Group and other major developers through partnerships with blockchain platforms).

How to invest (practical guide)

1. Create a digital wallet — used to store tokens.
2. Sign up for a platform (e.g. PRYPCO Mint).
3. Complete KYC/AML verification — you usually need a passport/Emirates ID and proof of identity.
4. Choose an object or share” — study lots on the platform, analyze profitability/location.
5. Pay for tokens — via bank transfer or card (in some cases, crypto, if the platform supports it).
6. Manage tokens — hold them for revenue/growth, or resell them on the secondary market when available.

Important rules and restrictions

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• Until the current pilot phase, in most cases, participation is limited to UAE residents (Emirates ID) — rules may be expanded in the future.
• Investing in tokenized real estate is a risky investment. Taking into account the volatility of digital assets, it is necessary to analyze projects and their economies.
• Regulation is developing: the legal framework changes as the project scales up.

Why it's beneficial

• a lower entry threshold than when buying a property normally;
• liquidity — tokens can be sold faster than real estate itself;
• availability for global investors (as it expands);
• transparency and security thanks to blockchain.