Key Highlights:

• Ellington Properties tokenized a Kensington Waters apartment, being the second blockchain-supported real estate project in Dubai.
• All digital property shares were completely sold out within a minute, reflecting strong investor demand.

Key Facts:

• The apartment is situated in Kensington Waters at Mohammed Bin Rashid City in Dubai.
• Fractional ownership began at only AED 2,000, making property more affordable.
• The entire offering was taken up in 60 seconds of coming on the market.

Key Background

Dubai is fast emerging as a global leader in tokenising real estate, opening new avenues for investment through blockchain technology. In a pioneering move, Ellington Properties has emerged as the second developer in the city to tokenise a residential property. The apartment, which is part of the Mohammed Bin Rashid City’s Kensington Waters community, was divided into digital tokens that represented partial ownership. Each share was as low as AED 2,000, placing the Dubai property market within reach of small and technologically savvy investors.

The sale was a huge success. All shares were subscribed within 60 seconds of being placed on sale. This reflects growing demand for innovative, tech-powered investment products, especially in real estate, which traditionally has been a high-barrier market. Tokenization guarantees every share is recorded and authenticated on an immutable blockchain ledger so that investors feel confident with transparency and security.

This initiative is part of Dubai’s larger goal to tokenize AED 60 billion worth of property assets by 2033, with official support from the Dubai Land Department and other regulatory bodies. Through this model, investors not only gain access to real estate at lower entry points but also benefit from fast, low-cost transactions. Legal ownership is fully recognized and certified, ensuring the investor’s rights are protected.

The success of this second tokenized property further proves that Dubai’s real estate market is ready for blockchain integration. It reflects a broader transformation driven by the city’s forward-thinking strategy. Tokenization is also aligned with Dubai’s D33 and 2040 urban development plans, which aim to make the city a global hub for innovation and technology.

Ellington Properties’ Co-Founder has noted that tokenization is revolutionizing the manner in which people engage with and invest in property. By limiting points of entry and dematerializing ownership, it is creating a more inclusive, dynamic investment universe. With robust demand already witnessed, there are bound to be further tokenized schemes on the cards, possibly transforming the manner in which real estate investing occurs in the UAE and elsewhere.