One year after the Dubai Land Department launched the landmark pilot on real estate tokenization, Dubai’s property market is set to face its moment of truth in the future that seems as close as a year. This week, the DLD announced the launch of the second phase of this tokenization pilot — focussed on testing the operational readiness to roll out tokenization services commercially by 2027.
Afterall, as the world watches, the Dubai authorities have emerged as the first-time experimenters of this niche technology.
At the recently held PropTech Connect 2026 conference, players from the industry conversations appeared shifted from hype to reality, questioning if tokenization can actually get real estate to trade like stocks — with as much ease and liquidity.
Coin Headlines sat for a conversation with Abhishek Jalan, the CEO of boutique real estate firm Grovy Developers along the sidelines of the PropTech conference. Jalan, during the conversation, said developers in Dubai presently are both, curious and pragmatic about the results of DLD’s ongoing tokenization tests. The sentiment of euphoria, however, remains on the backseat for now.
In the course of our conversation, Jalan shared insights on an array of topics ranging from market sentiment around blockchain integration to understanding how funds tied to tokenization would be available for use. Lets dive into it.
Coin Headlines: What, from an insider’s perspective, is the sentiment around tokenization in UAE’s real estate community
Jalan: From a developer’s perspective, sentiment is better described as being both curious and pragmatic than it is being euphoric. There appear to be three distinct camps forming.
Innovation-driven developers and institutional investors are experimenting with tokenization as a way to raise capital that will increase access to liquidity and expand global reach to potential investors.
Traditional developers want to explore the opportunities presented by tokenizing development and potentially engage with the growing number of traditional developers to develop partnerships that can enable them to participate fully in the digital economy. However, traditional developers will not engage with the digital economy until they have regulatory clarity, assurances regarding integration with land registry systems, protections for investors, and appropriate ways for them to exit investments via secondary market transactions.
Traditional capital providers remain skeptical about pursuing any investments in the digital economy until governance structures are in place, transparency of value can be demonstrated, and reputational risks are mitigated.
Overall, although high expectation exists, transactional structures and liquidity rails are still developing.
Coin Headlines: What are the top two foreseeable pros and cons on being the first market to dabble in tokenization for UAE’s real estate sector
Jalan: Tokenization democratizes real estate investment by lowering capital barriers and broadening access beyond traditional debt or equity. Additionally, this innovation allows the UAE to lead the world of international finance and technological development.
However, one disadvantage of using tokens is that while they represent digital assets, there is uncertainty regarding how easily and quickly they will be sold. Tokenized assets present operational challenges in terms of compliance, governance and transparency — this is not an issue that exists with traditional real estate development.
Coin Headlines: DLD’s approach with the ongoing pilots – what’s hits the bull’s eye and what can be amended?
Jalan: A responsible, gradual experimentation framework has established credibility. By anchoring pilot programs to governmental land records frameworks and prioritizing investor protection, these pilot programs signal credibility to institutional participants.
The next phase of development to enhance these programs will focus efforts on secondary market clarification, investor rights standardization, retail education, transparent performance reporting, and improved platform interoperability.
In order for these pilot programs to transition from proofs-of-concept into scalable marketplaces, it is critical that all aspects be addressed.
Coin Headlines: How will tokenization work? If I, for example, have AED 2,000 to invest, am I actually buying a piece of the building or just a ‘digital ticket’ that says I’m owed money?
Jalan: Most of the models used to invest in real estate do not include the actual title ownership of a piece of property. You are actually buying a fractional interest, usually through an entity that legally owns the property, and that interest is being held digitally.
As a result of owning this fractional interest, you might receive rental income, see your investment appreciate in value, or receive your proportionate share of any proceeds when the property is sold or refinanced.
As such, your exposure is via securities as opposed to actual property; therefore, how well your rights are secured will depend on how well your digital investment is structured legally, governed on the platforms, and regulated by governments; therefore, understanding how this works from an educational standpoint is also critical.
Coin Headlines: If I suddenly need my money back next month, can I sell my tokens immediately, or do I have to wait for the whole building to be sold?
Jala: Liquidity has a direct relationship to the market. Execution will always depend upon participants who actively trade, the trading platform they are using and the regulatory framework for trading. Therefore, you should currently think of tokens as long-term capital commitments. As liquidity infrastructure develops, broader adoption will follow over time.
Coin Headlines: What is your estimate on the sector participation rate in real estate tokenization and capital concentration?
Jalan: For the next three-five years, it is likely that the majority of tokenized real estate transactions will occur in small portions, typically low single-digit percentage, and that investment will be focused primarily on institutional-grade sponsors and prime assets.
Over the longer term, as regulatory clarity and liquidity improve, tokenization has the potential to serve as a funding source that complements (rather than substitutes) traditional financing methods.
While the economic fundamentals of real estate (location, quality, governance, and discipline) will remain the same, tokenization opens new avenues for access and flexibility in terms of investing in real estate. Therefore, its economic impact will be limited to how those new ways of accessing real estate will create opportunities.
Status of tokenization trials
DLD tested deeds and technical frameworks around tokenized real world assets between march 2025 and February 2026.
Moving on in the second phase, DLD plans to test the resale activity of tokenized assets in secondary markets — starting February 20.
A recent report by consulting firm Kearney and tokenization firm Ctrl Alt said that the Gulf Cooperation Council (GCC) could fetch around $500 billion from the on-chain real world assets market.
As part of its initiative, the DLD has reportedly been organizing workshops to educate real estate players on how tokenized assets would work.