The Dubai Land Department (DLD) and the Dubai Virtual Asset Regulatory Authority (VARA) joined forces to integrate digital assets into the real estate sector.
DLD signed an agreement with VARA aimed at creating a regulatory framework and infrastructure for real estate tokenization. The collaboration will establish a legal and technological ecosystem that uses blockchain technologies to issue property ownership rights as tokens on decentralized networks.
This partnership between DLD and VARA will streamline payment processing, reduce operational costs, and expand investment access to the real estate market, including fractional ownership. The initiative is also focused on creating a transparent regulatory environment for digital asset operations in real estate, which will boost investor confidence and ensure compliance with international standards.
Besides, tokenizing property registry data will enhance market liquidity and improve the efficiency of property management companies.
According to Marwan Ahmed bin Ghalita, Director General of DLD, the agreement will open up new opportunities for the real estate sector. He added that by strengthening collaboration with technology companies, DLD aims to position Dubai as a global leader in real estate innovation.
This initiative is a logical extension of the real estate tokenization pilot project launched in March this year in collaboration with the Dubai Future Foundation (DFF). According to preliminary estimates by DLD, by 2033, tokenized real estate transactions could account for approximately 7% of the total market transaction volume, reaching 60 billion dirhams (~$16.3 billion).
