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Dubai advances towards immediate real estate transactions with a $16 billion tokenization initiative.
Dubai Land Department and Ctrl Alt advance to the next stage of their real estate tokenization initiative, facilitating the resale of property tokens.
Dubai, UAE (Pexels, Pixabay modified by CoinDesk)
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- More than $5 million in tokenized Dubai real estate is now available for trading on a regulated secondary market.
- The tokens, based on the XRP Ledger, are secured by property title deeds, with transactions recorded in Dubai’s land registry and facilitated by Ripple Custody.
- This initiative is part of Dubai’s larger objective to tokenize $16 billion worth of real estate by 2033.
The Dubai Land Department (DLD) and the tokenization company Ctrl Alt announced the launch of a secondary market for real estate-backed tokens, allowing the resale of $5 million in fractional property ownership on Friday.
This initiative forms part of Dubai’s ambitious strategy to establish itself as a global center for real estate tokenization, converting property ownership into tradable tokens on blockchain technology. Advocates maintain that blockchain technology can enhance the efficiency of ownership records and settlements. Nonetheless, inconsistent regulation poses a challenge, and limited secondary trading can restrict liquidity, as highlighted by a report from EY.
The market for tokenized real estate remains a small segment of the global property market but is anticipated to expand significantly in the coming decade. A report by Deloitte last year estimated that $4 trillion worth of real estate will be tokenized by 2035, growing at a rate of 27% annually.
Dubai’s $16 billion strategy
The DLD, a governmental body overseeing the real estate sector, outlined a strategy last year to tokenize 7% — approximately $16 billion — of Dubai’s real estate market by 2033. The initial milestone of this plan was the development of a platform in collaboration with Prypco and Ctrl Alt to tokenize property deeds on the XRP Ledger (XRP) blockchain.
Trading on the secondary market with these tokens constitutes the second phase of this pilot program, which aims to evaluate market infrastructure, investor safeguards, and compliance with current property regulations. Ctrl Alt, the infrastructure partner for the project, has integrated directly with the DLD system to issue and oversee title deed tokens on-chain.
The tokens are also associated with an additional layer — Asset-Referenced Virtual Assets (ARVAs) — that govern who may trade them and the conditions under which trading occurs. This arrangement guarantees that all transactions are compliant and accurately recorded in Dubai’s official property registry.
Read more: Real estate billionaire Barry Sternlicht is ready to tokenize assets, but says U.S. regulation blocks it
