FM newsroom – real estate investments, trends. Tokenisation is reshaping the future of real estate, bridging the gap between traditional finance and blockchain innovation. Dubai’s launch of the region’s first tokenised property platform is a clear signal that this trend is gaining real-world traction.
Tokenisation: A New Era for Real Assets
Tokenisation—the process of converting real-world assets into digital tokens on a blockchain—is becoming one of the most transformative forces in the crypto and real estate sectors. Alongside Bitcoin and Ethereum, it is now one of the most frequently mentioned concepts in the world of digital assets. The global market for tokenised real estate is expected to grow from less than $300 billion in 2024 to a staggering $4 trillion by 2035, economx writes with reference to the 2025 Financial Services Industry Predictions by Deloitte,
A key concept here is Real World Assets (RWA)—the tokenisation of tangible assets such as real estate, commodities, or bonds. By converting these assets into blockchain-based digital tokens, they become tradeable 24/7, offering enhanced accessibility, efficiency, and transparency compared to traditional finance (TradFi).
These innovations promise to redefine how property is traded, owned, and financed. As seen in the Dubai example, tokenised real estate opens up new investment pathways and marks one of the fastest-growing sectors at the intersection of blockchain and finance.
Dubai’s Bold Step into Tokenised Real Estate
Dubai has taken a major leap by launching MENA’s first tokenised real estate project via the Prypco Mint platform under the oversight of the Dubai Land Department (DLD). According to the official announcement, this initiative is part of the Real Estate Sandbox, with key partners including the UAE Central Bank, VARA, and the Dubai Future Foundation providing support.
The pilot phase allows UAE residents to invest in real estate using AED, with tokenised shares starting from just AED 2,000. All transactions are conducted in local currency, excluding cryptocurrencies, to ensure stability and compliance during initial implementation.
The platform offers transparency through comprehensive property details, including pricing, risks, and specifications, giving investors the information they need to make informed decisions. Future phases will expand access globally, further cementing Dubai’s leadership in digital real estate transformation.
Global Institutions Are Paying Attention
The significance of tokenised real estate has caught the attention of major financial institutions. One notable example is BlackRock, which launched its BUIDL (Institutional Digital Liquidity Fund) in 2023. This was more than just a technological experiment—it demonstrated that blockchain can deliver real, tangible value to the institutional finance sector.
BlackRock’s move helped restore trust and credibility in blockchain ecosystems, which had suffered from major fraud cases in recent years. While it’s crucial to distinguish between blockchain infrastructure and volatile crypto projects built on it, the signal from the world’s largest asset manager was clear: tokenisation is no longer fringe—it’s foundational.
Challenges Ahead for Tokenised Real Estate
Despite the excitement, tokenisation is still in its early stages and faces several significant challenges, particularly in terms of regulation and technology. Three primary hurdles stand out:
Technological Risk – Issues such as vulnerabilities in smart contracts or leaks of private keys can pose serious risks to users and platforms.
Infrastructure Readiness – Many organisations are still not prepared to manage public and private keys or to implement secure user access management systems for blockchain-based services.
Compliance with KYC/AML Standards – Adhering to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations is critical. These rules require service providers to verify customer identities and monitor financial activity, ensuring protection against illicit transactions.
A Promising Yet Complex Future
As Dubai sets a regional precedent and global players like BlackRock validate the model, tokenised real estate is poised to become a powerful force in property investment. It offers the promise of accessibility, transparency, and liquidity—but also demands robust infrastructure and regulatory oversight.
Facility managers, investors, and innovators alike should closely monitor this space. Tokenisation is not a passing trend—it’s a foundational shift in how assets are owned, managed, and exchanged in the digital economy.
