Tokenisation enables real estate assets, including commercial properties such as offices for sale in Dubai, to be divided into digital tokens, allowing multiple investors to acquire fractional ownership stakes that would otherwise be inaccessible through traditional direct transactions. For retail investors, this provides a more accessible entry point into Dubai’s real estate market. For developers, it introduces new capital-raising models that complement existing financing structures.
While tokenisation opens the door to broader participation, industry experts continue to stress that it does not alter the core fundamentals that drive long-term real estate value — including location, asset quality, tenant profile, and management. This is especially relevant in Dubai’s thriving commercial sector, where demand for offices remains high. Tokenisation simply changes the mechanics of access and ownership, while maintaining the commercial discipline required for sustained asset performance.
Costs and valuation risks also remain key considerations. Although often marketed as a more efficient investment model, tokenisation can introduce a complex fee structure that includes platform charges, blockchain-related fees, legal and compliance costs, and operational overheads, particularly when servicing large numbers of smaller investors. Additionally, the presence of real-time token trading may introduce valuation volatility that does not necessarily reflect underlying property performance, creating further pricing risk for institutional capital.
In Dubai’s market — where income-generating assets, such as office towers and mixed-use developments, are often controlled by master developers and sovereign-backed platforms — tokenisation may evolve most rapidly. These large-scale entities have both the regulatory relationships and operational capabilities to structure institutional-grade tokenised products that could appeal to global capital.
PP Varghese, Head of Professional Services at Cushman & Wakefield Core, commented: "Dubai’s leadership in tokenisation reflects its ability to combine regulatory innovation with strong market fundamentals. As institutional investors assess emerging models, the long-term opportunity lies in delivering professionally managed, transparent platforms that meet both governance standards and global capital expectations."
The Dubai Land Department’s pilot platform is an early but important signal of potential regulatory acceptance that may help shape institutional perspectives on tokenisation. As platforms demonstrate their ability to enhance transparency, automate compliance, and maintain professional asset oversight, tokenised models may begin to integrate more directly with conventional real estate structures.
While meaningful hurdles remain — including market depth, regulatory frameworks, and platform maturity — the longer-term opportunity may not sit in tokenisation replacing traditional real estate investment, but rather in hybrid structures that combine the operational strength of established platforms with the transparency and accessibility of blockchain technology. As global capital increasingly prioritises transparency, governance, and operational efficiency, Dubai’s early adoption of tokenisation places it in a strong position to shape how real estate investment models evolve.
