Real Estate Tokenization in Dubai | Step By Step Guide

Real estate tokenization is the word everyone keeps repeating, but few comprehend the real concept of it. One can state that it is a black hole kind of thing, as in, the more you go deeper, the more confused you feel. However, if you break it down step by step, then it becomes easier to understand. 

Let’s read an easy guide that helps you clear the concept of real estate tokenization in the UAE.  

Real estate tokenization in Dubai can be the best revolution by Real Estate Evolution Space (REES), as well as the Dubai Land Department's Virtual Asset Regulatory Authority and many other government bodies. They all come together and change the way Dubai real estate works. They integrated blockchain technology into real estate and revolutionized the market. 

First, let’s get a clear notion of what a token and tokenization are. You may haveblockchain technology an idea about a token and you might think of it as a coin. Well, in the end, it is a coin. Let’s understand it from an example. If you visit a museum and lock your mobile phone in a locker, you get a token. That token gives you the right to that particular locker. The same way real estate tokens work. 

As you have got the basic idea about a token, let’s combine it with a blockchain-based real estate tokenization ecosystem. In real estate tokenization, first, your physical property gets tokenized, and then it becomes available on a real estate tokenization platform. Then people can buy a fraction of that property and become the owners of that portion. Leveraging these tokens, multiple owners can own a single property due to fractional ownership. As real estate tokenization is based on blockchain technology, it ensures the utmost security, transparency, and efficiency in every transaction. 

The difference between real estate tokenization and real estate crowdfunding. 

Real estate tokenization and real estate crowdfunding both have the core idea of fractional ownership. However, the only difference is that real estate tokenization leverages blockchain technology, whereas real estate crowdfunding is just a simple model that grants investors access to funding through digital platforms.

The real estate tokenization works solely on blockchain technology and enhances the security and transparency of the investment. This ensures a blockchain-based real estate tokenization ecosystem with more users and more real estate properties converting into digital real estate assets. 

Let’s find out how investors get benefits from real estate tokenization.

• Real estate tokenization opens up the real estate market for global investment! You may be living in India, but you can still own a part of the property in Dubai. Fascinating, right!!

• With real estate tokenization, there is no need for you to buy an entire property; you can own a piece of property as per the capital you have, due to fractional ownership. 

• It may happen that your real estate property might take some time to get sold, but real estate tokenization eliminates this time-consuming process. Real estate tokenization is an easier and faster process when it comes to buying and selling assets or parts of assets.

• All the tokens bought or sold of real estate are stored securely with blockchain technology. Hence, it offers the benefit of enhanced security and transparency, as it is next to impossible to alter the data stored in blockchain. 

• The real estate tokenization process works with smart contracts that ensure the automation of the process, distribution of funds and rental incomes, and many more. 

Related blog: Dubai Real Estate Tokenization the new Era of Property Investment

How does it change Dubai’s market?

Real estate tokenization in the UAE received an enormous welcome from Dubai’s community. As real estate tokenization projects offer the benefit of global accessibility, now anyone can own a luxurious property in Dubai, UAE. Additionally, tokenized real estate projects include commercial properties, small houses and rental houses too. 

Real estate tokenization projects are on their way to changing the way people invest in Dubai. With its unique advantages, it attracts investors around the globe and makes it flexible for everyone to invest.

Future of Real Estate Tokenization in Dubai

You may have guessed that the future of real estate tokenization is bright in Dubai. As the government has launched the pilot phase, it has received an immense response. As well as Dubai has always been a country where innovation is accepted with open arms. 

Conclusion

Dubai, being an ultimate hub of innovation, always welcomes new things with open arms and a hope of success. This notion applies to real estate tokenization as well. If you have a physical asset that you want to tokenize or want a platform that lists your tokenized assets, Digitalrooar Softlabs assists you at every step. Our real estate tokenization developers have a strong grip and can lead you through the journey. And if you want to save time and don’t want to build a platform from scratch, you can contact us and our White Label real estate tokenization development team can offer you a readymade real estate tokenization platform. Reach out to us at +971 52 419 7728 with your queries and let us assist you with your real estate tokenization development projects.