What Happened?
Dubai’s real estate market reached a historic high of $18.2 billion in May, with a transaction volume of 18,700 deals, representing a 44% year-on-year increase. Notably, transactions for new developments surged by 314%, indicating a strong confidence and active participation from investors in Dubai’s real estate sector.
The CEO of the real asset tokenization platform Tokinvest stated that Dubai, with its high liquidity and market scale, is an ideal environment for achieving real estate tokenization, and it is expected that tokenization will become a growth momentum in the future.
The Dubai government is actively laying out Web3 infrastructure, launching the Prypco Mint platform to promote property tokenization, which is anticipated to account for 7% of the real estate transaction volume by 2033, creating an inclusive real estate market accessible to all.
Dubai Real Estate Market Hits $18.2 Billion in May
Dubai’s real estate market set a historical high of $18.2 billion in May. According to data from the real estate platform Property Finder provided to foreign media Cointelegraph, the Dubai real estate market completed a total of 18,700 transactions in May, with a total value of 66.8 billion AED (approximately $18.2 billion), a 44% increase compared to the same period in 2024, with transaction volume also growing by 6%.
Moreover, the value of transactions in the primary market (i.e., new developments) skyrocketed by 314%, reflecting the high interest from investors in Dubai’s new projects.
“This signifies that Dubai is not only one of the most active real estate markets globally but also a market ready to embrace innovative models,” said Scott Thiel, CEO of the real asset tokenization platform Tokinvest, in an interview with foreign media. He pointed out that the high liquidity and scale of the real estate market make it an ideal candidate for tokenization.
Thiel explained that real estate tokenization is not a future concept but a trend that is currently happening. By fragmenting real estate into fractional ownership, it not only allows more local and global investors to participate but could also potentially drive the next wave of growth in the real estate market.
Dubai Actively Promotes “Real Estate Tokenization” to Stimulate the Market
Foreign media analysis indicates that the vibrant activity in Dubai’s real estate market is also related to the local government’s proactive layout of Web3 real estate infrastructure.
Recently, Dubai’s financial giant MultiBank Group, real estate developer MAG, and blockchain company Mavryk signed a $3 billion agreement for the tokenization of physical assets, planning to put high-end real estate projects on the blockchain and enter the regulated real-world asset trading market.
In addition, the Dubai Virtual Assets Regulatory Authority (VARA) has officially incorporated tokenization regulations, providing clearer regulations for token issuers and trading platforms.
Moreover, the Dubai Land Department has recently launched the first officially supported real estate tokenization platform, Prypco Mint. This platform, developed by fintech company Prypco, operates on the XRP Ledger blockchain and is supported by Zand digital bank for financial services.
Currently, the platform is limited to users holding UAE identification, but officials have announced plans to open it to global investors in the future. The minimum investment threshold is set at 2,000 AED (approximately $540), significantly lowering the barrier to real estate investment. Prypco Mint is also integrated with Dubai’s government real estate system, ensuring that all transaction data is synchronously recorded in the blockchain and official land registry database, guaranteeing transparency and legal validity.
PRYPCO Mint is LIVE!
Dubai’s first tokenized real estate platform is here. Own a piece of the city from just AED 2,000. Backed by @Land_Department & licensed by @varadubai
Start investing todayhttps://t.co/aBQx00aLuv #PRYPCOMint #Tokenised #Property #Dubai #RealEstate
According to estimates from the Dubai government, by 2033, real estate tokenization will account for 7% of the total transaction volume in the city, equivalent to approximately $16 billion. Under the guidance of the government, industry collaboration, and the promotion of new technologies, Dubai is transforming the act of “buying a house” from a privilege of a few into an investment opportunity accessible to all asset classes. With the tokenization strategy in place, the Dubai real estate market is poised to reach the next peak, which may just be a matter of time.
Source: Cointelegraph, CoinDesk