Why This Matters: Affordability, Liquidity & Access
Democratizing Luxury Real Estate
Young and first-time investors are particularly drawn to tokenization because it breaks down the traditional barriers to entry. As stated by Joseph Thomas, co-founder of Ellington Properties, fractional ownership “democratises access to high value real estate by significantly lowering the entry barrier.” Investors can now participate in luxury projects with accessible capital starting from AED 2,000 instead of requiring millions upfront.
Portfolio Diversification & Risk Management
Fractional ownership allows small-cap investors to spread capital across multiple properties, diversifying their portfolios while sharing operational costs like maintenance. This approach also lowers exposure risk compared to full-property ownership.
Liquidity & Operational Efficiency
Tokenization overcomes the illiquidity challenge traditionally associated with real estate. Secondary trading becomes possible on peer-to-peer platforms, and open-ended token funds offer 24/7 subscriptions and redemptions—enabled by smart contract automation and reduced intermediaries.
The Regulatory Foundation in Dubai
Dubai’s regulatory bodies—the Dubai Land Department (DLD) and the Virtual Assets Regulatory Authority (VARA)—have created a robust framework for safe and compliant tokenization. They integrated the property registry with on-chain tokens and launched sandbox initiatives under the Real Estate Evolution Space (REES) program. With XRP Ledger selected as the technical backbone, produced by Ctrl Alt in collaboration with PRYPCO, tokens now sync with official title records, providing legal and technological certainty.
Market confidence in this innovation is reinforced by several major deals. A $3 billion tokenization deal involving MAG Properties, MultiBank Group, and Mavryk was announced, and DAMAC Group signed a $1 billion partnership with MANTRA to tokenize parts of its real estate portfolio.
What This Means for fäm Properties & Dubai Real Estate
As someone actively working at the intersection of Dubai’s luxury, off-plan, and exclusive projects, I see real estate tokenization bringing immediate and long-term strategic relevance to our operations.
Lower Capital Barrier, Broader Investor Reach
Tokenization dramatically lowers the financial threshold for property investment. Exclusive projects represented by fäm—such as AYAAN Heights 1 (Meydan Horizon), TORI by IGO (Al Furjan), and The Roof Residence (Meydan)—can now attract investors who were previously priced out of these high-value developments. Entry-level commitments as low as AED 2,000 convert previously inaccessible projects into investable assets, opening up opportunities for younger buyers, international investors, and those seeking fractional exposure to luxury real estate. This not only broadens our investor base but also creates new streams of demand that supplement traditional full-unit sales.
New Sales Channels & Marketing Strategies
Tokenization allows developers and agents to integrate co-ownership models alongside traditional sales, enabling multiple buyers to invest in the same unit or community. This opens access to global capital pools, including retail investors who may not have previously engaged with Dubai’s high-end market. For fäm Properties, this translates to more flexible marketing campaigns, innovative investment packages, and the ability to showcase developments in a digitally native, tech-forward way that resonates with modern investors.
Enhanced Liquidity = Greater Asset Value
One of the most transformative aspects of tokenized real estate is enhanced liquidity. Investors can trade tokens on secondary markets, creating an exit strategy that was previously difficult to achieve in traditional property markets. This liquidity can increase a property’s perceived value, potentially supporting higher pricing for both off-plan and secondary market units. For fäm Properties, it strengthens our ability to position projects as investment-grade assets, attracting both local and international clients looking for secure, transparent, and liquid property opportunities.
Data, Transparency & Trust
Tokenization platforms sync property ownership on-chain with the official DLD registry, ensuring transparency, auditability, and tamper-proof records. Combined with tools like DXB Interact and fäm’s proprietary market dashboards, this empowers agents and investors alike with real-time insights. Buyers gain confidence knowing their fractional ownership is legally recognized, professionally managed, and backed by a secure blockchain infrastructure—further reinforcing Dubai’s reputation as a trusted global real estate hub.
The Road Ahead
Tokenization represents more than a technological step—it’s a paradigm shift in how real estate is owned and perceived in Dubai. It democratizes access, enhances liquidity, cuts costs, and aligns with our city’s broader ambition under the Dubai Economic Agenda D33 and Real Estate Sector Strategy 2033.
At fäm Properties, we are monitoring this evolution closely, exploring token integration for selected exclusive off-plan projects, and preparing to guide clients through this next frontier. From fractional ownership in ultra-lux developments to crowd-backed access to capital-appreciating assets, tokenization offers a new chapter for real estate in Dubai.
“Tokenization is not just innovation; it’s the invitation for anyone—especially younger or international investors—to participate in one of the world’s most dynamic property markets with clarity, compliance and confidence.”