Tokenization Launches Dubai’s Real Estate Market to $18B in May 2025
In May of this year, Dubai experienced a remarkable surge in its real estate trading market, achieving an unprecedented sales volume and record-high transaction values, showcasing increased crypto holder confidence in the city’s property sector.
According to a report from a publication dated 8 May 2025, the property trading market in Dubai reached a significant milestone with 18,700 transactions, amounting to around 66.8 billion dirhams (roughly $18.2 billion).
The figures indicate that the trading market experienced a 44% year-on-year increase in transaction value and a 6% rise in overall sales volume.
Dubai just announced a $16B real estate tokenization.
They’re transforming luxury properties into digital shares accessible to all.
It’s the largest tokenization initiative ever.
Here’s what this means for your opportunity to own premium Dubai real estate:
pic.twitter.com/cCY0fEuqni
— BeByDay (@BeAlterEgos) May 2, 2025
The rise in both primary and secondary sales contributed to this increase, with primary sales appreciating in value by 314% compared to 2024, while secondary sales increased by 21%. This enhanced performance is largely attributed to the push for tokenization within Dubai’s real estate sector.
The advent of tokenization in real estate has enabled investors to acquire fractional shares of properties, making ownership more attainable. This shift has also led to a re-evaluation and modification of the traditional crypto market dynamics.
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Current Transaction Volume in Dubai’s Real Estate Crypto market Sets the Stage for Tokenization
Experts in the industry view this growth as indicative of the city’s advancement in real estate innovation. Scott Theil, co-founder and CEO of Tokinvest, a network focused on real-world asset (RWA) tokenization, believes the market’s market fluidity creates an ideal environment for real estate tokenization to thrive.
He remarked, “Dubai is establishing itself as one of the world’s most vibrant and appealing real estate markets. When you observe over 60 billion dirhams in transactions in a single month, it strongly signifies that the trading market is ready for innovative financial frameworks.”
Theil elaborated that real estate tokenization has transitioned from theoretical discussions to active development, gaining momentum swiftly.
He noted that the present transaction volume constitutes a prime launching point for fractional property investments that meet the needs of both global and local investors.
“Tokenization will not only follow this growth but will also help propel it,” he concluded.
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Regulatory Backing for Tokenized Real Estate in Dubai
The surge in Dubai’s real estate sector aligns with specific regulatory measures taken by authorities to enhance and modernize property transactions.
Just last month, on 1 May 2025, Dubai’s MultiBank Group, the real estate titan MAG, and blockchain service provider Mavryk forged a partnership valued at $3 billion aimed at bringing MAG’s luxury properties online.
This agreement seeks to facilitate the listing of MAG’s properties on a regulated RWA marketplace supported by distributed database technology.
Furthermore, on 19 May 2025, Dubai’s Virtual Asset Regulatory Authority (VARA) updated its directives to encompass guidelines for real-world asset tokenization, providing crucial clarity for issuers and exchanges involved in trading tokenized properties.
Additionally, on 25 May 2025, the Dubai Land Department (DLD), the UAE’s Central Bank, and the Dubai Future Foundation introduced Prypco Mint, a protocol for tokenized real estate.
This pilot initiative will enable holders of valid Emirates IDs to invest in fractional shares of ready-to-own properties throughout Dubai, starting from Dh 2000 (about $545).
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Key Takeaways
- The UAE property trading market recorded 18,700 transactions in May with a total value of approximately $18.2 billion
- Primary sales increased by 321% while secondary sales rose by 21%
- The market noted a 44% year-on-year growth in transaction value and a 6% increase in total sales volume
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