Tokenization of Real Estate in UAE: Low Entry, High Potential

Jun 19, 2025

Real estate business in the UAE, particularly in hot spots such as Dubai, Abu Dhabi, and Sharjah, has always been of interest to international investors. It is not hard to understand why, with its modern infrastructure, tax-friendly environment, and high rental yields.

But what we are saying is that now you do not need millions to have a share in this exploding market? The obstacles to entry have been reduced to a minimum, thanks to real estate tokenisation, but the potential is through the roof.

Two Major Developments

First Tokenised Listing: DAMAC - Mantra

In January 2025, DAMAC Group announced a collaboration with blockchain platform Mantra to tokenise real-world assets, such as real estate and data centres, valued at US$ 1 billion in value. Launched in early 2025, this project saw DAMAC among the largest developers among the first to tokenise property assets in Dubai.

Second Tokenised Listing – Dubai Land Department Pilot

The Dubai Land Department (DLD) ran its pilot on March 19, 2025, as part of the "Real Estate Tokenisation Project"- within its Real Estate Innovation Initiative (REES). The DLD is the first land registry in the Middle East to tokenise property title deeds in this revolutionary step.

Why Tokenisation Makes Sense in the UAE?

1. Low Entry Point

In the traditional methods of investing in the UAE property, the investor needed huge sums of money-in millions of dirhams. With tokenisation, the investment minimums are turned upside down, with investment minimums as low as AED 1,000. This opens up the market to young investors, NRIs, and even crypto-savvy millennials.

2. High Rental Yields

Dubai and Abu Dhabi have one of the best rental yields in the world, at 6 9%. It is a passive income opportunity because token holders get a fair share of such returns.

3. Global Access and Diversification

Through tokenised assets, investors in any part of the world, be it in Mumbai, London, or Singapore, can invest in the UAE real estate without being there physically or going through lengthy legal procedures. It also enables investors to diversify portfolios across several properties and several sectors (residential, commercial, hospitality).

4. Liquidity and Ease of Exit

Traditional real estate can take months to sell, whereas with tokenised property, it is possible to buy/sell quickly on compatible platforms. Investors have the ability to withdraw partially or fully, depending on the performance in the market or individual financial requirements.

5. Transparency & Security

Blockchain makes each transaction traceable, transparent, and immutable. Investors are able to confirm ownership, rental income, and past transactions in real time, which minimises fraud and conflict.

What to Keep in Mind

The potential is huge, but tokenisation is currently in its development:

The regulatory environment is becoming clear, but it depends on the emirate.
Select regulated platforms which fall under the financial jurisdiction of the UAE (e.g. DFSA, ADGM).
Learn the terms of smart contracts and token rights as an investor.

Final Thoughts: A Smart Move for the Future

Tokenisation is not a mere technology trend but a change in the paradigm of real estate investing. The UAE is a land of innovation and opportunity, and tokenised real estate is offering everyday investors the chance to access high-value assets, previously solely available to the elite.

It has low entry points, high returns, and international access, making it a golden opportunity for investors seeking to diversify, grow, and future-proof their investment portfolio.