Dubai Real Estate Hits $18.2B in Sales Amid Tokenization Push

Dubais real estate market performance signals tokenization readiness

Scott Thiel, the co-founder and CEO of the real-world asset (RWA) tokenization platform Tokinvest, told Cointelegraph that the record-breaking performance of Dubais real estate market signals the citys readiness for real estate innovation like tokenization.

“It reinforces what we already knew, Dubai is becoming one of the most active and attractive real estate markets globally,” Thiel told Cointelegraph. “When you see 60 billion dirhams in transactions in a single month, its a strong signal that the market is liquid, dynamic and ready for innovation.”

The executive added that real estate tokenization is no longer a futuristic concept but an active development gaining steam. Thiel added that the volume presents a perfect launchpad for fractionalization — dividing properties in smaller, more affordable shares — to meet investor demand locally and internationally.

Thiel added that tokenization will not just follow market growth but will help accelerate it. “Tokenisation wont just accompany the next record, we believe, it will help drive it,” he said.

Regulators back tokenized assets

Dubais real estate boom in May coincided with major regulatory and industry developments to modernize how properties are sold and bought.

On May 1, Dubai‘s MultiBank Group, real-estate giant MAG and blockchain provider Mavryk signed a $3 billion RWA agreement. The deal will bring MAG’s luxury real-estate projects into the blockchain using a regulated RWA marketplace.

On May 19, the Virtual Asset Regulatory Authority (VARA), Dubais crypto regulator, updated its guidelines to include provisions for real-world asset (RWA) tokenization. Lawyer Irina Heaver told Cointelegraph these rules give issuers and exchanges a clear path to launch and trade tokenized real estate assets.

On May 25, the Dubai Land Department (DLD), the Central Bank of the United Arab Emirates, and the Dubai Future Foundation launched a tokenized real estate project in the Middle East and North Africa region. The government institutions launched a platform that allows investors to buy tokenized shares in “ready-to-own properties in Dubai.”