Dubai’s real estate market surged in May, posting record sales volumes and transaction values that signal growing investor confidence and potential readiness for property tokenization.
According to data shared in a press release with Cointelegraph by real estate platform Property Finder, Dubai’s real estate sector reached a total sales value of 66.8 billion dirhams (about $18.2 billion) across 18,700 transactions in May. The figures indicate a 44% year-on-year surge in transaction value and a 6% rise in sales volume.
The growth was driven by both primary and secondary market activity. Primary sales saw a 314% spike in value compared to May 2024, while secondary sales rose 21% in value.
The performance comes amid an accelerating push into real estate tokenization, which opens up the market to more investors and reshapes the dynamics of property ownership.
Dubai’s real estate market performance signals tokenization readiness
Scott Thiel, the co-founder and CEO of the real-world asset (RWA) tokenization platform Tokinvest, told Cointelegraph that the record-breaking performance of Dubai’s real estate market signals the city’s readiness for real estate innovation like tokenization.
“It reinforces what we already knew, Dubai is becoming one of the most active and attractive real estate markets globally,” Thiel told Cointelegraph. “When you see 60 billion dirhams in transactions in a single month, it’s a strong signal that the market is liquid, dynamic and ready for innovation.”
The executive added that real estate tokenization is no longer a futuristic concept but an active development gaining steam. Thiel added that the volume presents a perfect launchpad for fractionalization — dividing properties in smaller, more affordable shares — to meet investor demand locally and internationally.
Thiel added that tokenization will not just follow market growth but will help accelerate it. “Tokenisation won’t just accompany the next record, we believe, it will help drive it,” he said.
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Regulators back tokenized assets
Dubai’s real estate boom in May coincided with major regulatory and industry developments to modernize how properties are sold and bought.
On May 1, Dubai’s MultiBank Group, real-estate giant MAG and blockchain provider Mavryk signed a $3 billion RWA agreement. The deal will bring MAG’s luxury real-estate projects into the blockchain using a regulated RWA marketplace.
On May 19, the Virtual Asset Regulatory Authority (VARA), Dubai’s crypto regulator, updated its guidelines to include provisions for real-world asset (RWA) tokenization. Lawyer Irina Heaver told Cointelegraph these rules give issuers and exchanges a clear path to launch and trade tokenized real estate assets.
On May 25, the Dubai Land Department (DLD), the Central Bank of the United Arab Emirates, and the Dubai Future Foundation launched a tokenized real estate project in the Middle East and North Africa region. The government institutions launched a platform that allows investors to buy tokenized shares in “ready-to-own properties in Dubai.”
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