Co-ownership of property in Dubai: New project to offer real estate through tokenisation

Day launched the first pilot phase of the Real Estate TokenizationProject.  The aim is to tokenize 

In a major real estate development,  DLD or the Dubai Land Department on Wednesday. The aim is to allow for fractional ownership of properties and this will open up avenues for smaller investors. Also, it will allow larger investors to diversify their holdings and to spread out the risk. 

You will be able to own a small piece of property along with several other owners. It works on the same principles of blockchain on which things like crypto are based. These holding stakes will be digital tokens.  

For small-time investors who want to invest in fractional ownership but without the uncertainty of crypto,this is a huge boon. There are already companies that are helping customers with the new system,  Nouba Real Estate. 

Buyers will now have more autonomy and flexibility. If you are a small investor,then this is the right thing for you. 

Greater liquidity

Sheikh Imran Saleem, CEO of Nouba Real Estate, said this would revolutionize the Dubai property market by allowing for greater liquidity, accessibility, and efficiency.

“By converting property assets into digital tokens on a blockchain, investors can buy and sell fractional ownership in real estate, significantly lowering the capital required to participate in the market. This will also enable a more seamless and transparent transaction process, reducing paperwork and intermediaries,” he said.

“Additionally, blockchain technology ensures secure, immutable records, enhancing trust and reducing fraud risks in property transactions.”

He added that tokenisation will expand the number of potential buyers in Dubai and increase access to Dubai’s real estate market. “Smaller investors will now be able to buy properties and we will see a more diversified buyer base, bringing more stability. More participants will mean more liquidity, faster deals,and possibly higher volumes of transactions which will further quicken the development of Dubai’s real estate market,” he told Nouba News.

Wissam Breidy, CEO of HRE Development, said tokenisation lets smaller investors buy into high-value real estate projects. This “inclusivity will diversify the investor base and create a more dynamic market.”

Wissam Breidy

Yogesh Bulchandani, CEO of Sunrise Capital, said tokenisation lowers barriers to entry, making real estate accessible to a wider pool.

Rohit Bachani

“Investors can now diversify their portfolios with ease and benefit from enhanced liquidity through tokenised transactions. It’s an innovative way to bridge the gap between traditional real estate investment and the evolving tech-driven market, aligning with our mission to bring the finest luxury real estate experiences to lifestyle enthusiasts,” he said.

Bachani went on to say that he expected more smaller investors to plough their funds into smaller projects at a breakneck pace “This opens up the market to a wider range of investors, ultimately enriching the ecosystem with more depth and diversity while enhancing the investment opportunities across various segments.”

Dh60-billion market

The Emirati real estate market is already massive and expanding. The project will improve Dubai’s position as a local and global hub for digital assets, enhancing its competitiveness on both the Arab World and international levels.

In less than a decade it is expected that this market will expand to be a 60 billion Dirham market.

“By converting real estate assets into digital tokens recorded on blockchain technology, tokenisation simplifies and enhances buying, selling, and investment processes,” said Marwan Ahmed Bin Ghalita, Director General of Dubai Land Department.

“Following this year’s pilot launch, we will thoroughly assess the outcomes and leverage key insights to refine the project ahead of its full-scale implementation.”

Marwan Ahmed Bin Ghalita

He went on to say that this project is a component of the recently launched ‘REES’ Real Estate Innovation Initiative to become a magnet for diverse technology firms.

The project is being rolled out in collaboration with the Dubai Virtual Assets Regulatory Authority (VARA) along with Dubai Future Foundation (DFF) through local partner agencies.

It is widely expected that the expats who are living in Dubai are going to be major buyers as they seek to put their savings to good use by buying into the market. 

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Last month, Dubai saw a total of 16,999 sales in the real estate sector. This is a massive jump of 35.5 percent. In fact it is among the, if not the best month ever recorded in Dubai real estate. 

Villa sales in fact doubled to 3679 compared to the same month from last year. The sector got off to a great start to the year, with sales hitting 51.1 billion AED. Also, when it comes to value the growth is even more impressive than just the raw volume. In terms of value, they are up a massive 40 percent compared to the same month last year. 

“The data once again highlights the robust nature of Dubai’s real estate market and the steady growth it has experienced over the past few years. This reinforces Dubai’s position as a safe and reliable hub for real estate investment, further boosting investor trust and attracting attention from local, regional and global markets,” said Firas Al Msaddi, CEO of a leading UAE real estate firm.

Villa sales Increase 99.7 percent

Villa sales, which are up 99.7 percent, to be exact, to 3679 in comparison to the preceding year. Also, when it comes to land sales they are up to 9.6 billion dirhams, and a total of 608 were sold, or 74.7 percent, over the last year. At Nouba, we are super excited at what this could mean for our investors in terms of long-term profits. 

Also, sales of apartments are also up by over a fifth or about 21.3 percent, in terms of raw numbers to 11,364. Also, commercial property is not to be left behind, and 447 properties changed ownership last month. These were worth a total of 1.2 billion dirhams. That is a huge 40.1 percent jump compared to the same time last year. Also, per square foot prices are going up, and commercial space hit 1551 dirhams per square foot on average, or a 3.4 percent increase. 

If you are an international investor looking to invest in the UAE,this is the best time to invest in UAE properties with Nouba Real Estate.

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