What Happened?
Dubai’s real estate market reached a new high of $18.2 billion in May, with a total of 18,700 transactions, marking a 44% year-on-year increase. Notably, transactions for new developments surged by 314%, reflecting investors’ strong confidence and active participation in Dubai’s real estate.
The CEO of tokenization platform Tokinvest stated that Dubai, with its high liquidity and market scale, is an ideal environment for real estate tokenization, and it is expected that tokenization will become a driving force for future growth.
The Dubai government is actively laying out Web3 infrastructure, launching the Prypco Mint platform to promote real estate tokenization, which is projected to account for 7% of the market transaction volume by 2033, creating a new landscape for public participation in real estate.
Dubai’s Real Estate Market Reaches New Heights in May
In May, Dubai’s real estate market hit a historic high of $18.2 billion. According to data provided by the real estate platform Property Finder to foreign media outlet Cointelegraph, a total of 18,700 transactions were completed in May, with a total value of 66.8 billion AED (approximately $18.2 billion), representing a 44% increase compared to the same period in 2024, while transaction volume also grew by 6%.
Moreover, the primary market (i.e., new developments) saw transaction values skyrocket by 314%, indicating high investor interest 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 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 trend but a current reality. By fragmenting real estate into fractional ownership, it not only allows more local and global investors to participate but may also 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 active Dubai real estate market is also related to the local government’s aggressive deployment of Web3 real estate infrastructure.
Recently, Dubai 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 bring high-end real estate projects onto the blockchain and into the regulated real-world asset trading market.
Additionally, the Dubai Virtual Assets Regulatory Authority (VARA) has officially incorporated tokenization regulations, providing clearer rules for token issuers and trading platforms.
Furthermore, 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; however, officials have announced plans to open it to global investors in the future. Each minimum investment threshold is set at 2,000 AED (approximately $540), significantly lowering the barrier for real estate investment. Prypco Mint is also integrated with the Dubai government’s real estate system, ensuring that all transaction data is simultaneously recorded on the blockchain and the official land registry, guaranteeing transparency and legal validity.
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According to the Dubai government’s estimates, by 2033, real estate tokenization will account for 7% of the total transaction volume in the city, equivalent to approximately $16 billion. With government leadership, industry collaboration, and new technology driving this initiative, Dubai is transforming “buying a house” from a privilege of the few into an investment opportunity for all asset classes. Under the tokenization strategy, Dubai’s real estate market is on its way to the next peak, which may only be a matter of time.
Source: Cointelegraph, CoinDesk