Digital Expansion, Tokenisation Frenzy, and Supply Surge Define Dubai’s Real Estate Landscape

Dubai’s property market continues its rapid transformation, bolstered by digital innovation, investor confidence, and an aggressive expansion pipeline. Over the past two weeks, the city’s real estate sector has witnessed major developments, from blockchain-driven tokenisation to a surge in upcoming housing supply that may test market resilience.

Ejari Now Available on WhatsApp

In a move aimed at simplifying regulatory processes, the Dubai Land Department (DLD) has enabled Ejari rental contract registration via WhatsApp. Tenants and landlords can now complete registrations through the AQARI platform by messaging 6005AQARI, eliminating paperwork and enabling faster turnarounds.

The initiative is part of the government’s broader digital transformation strategy, streamlining public services and reducing dependency on in-person visits.

Tokenised Properties Sell Out in Minutes

The DLD’s real estate tokenisation pilot has gained significant momentum. The second phase of tokenised offerings sold out in just 1 minute and 58 seconds, attracting 149 investors from 35 countries. Over 10,000 individuals were on the waitlist, indicating strong appetite for blockchain-based fractional property ownership.

Authorities now target a AED 60 billion tokenised portfolio by 2033, positioning Dubai as a global leader in real estate digitalisation.

May Sales Reach AED 54.5 Billion

Dubai’s residential market recorded 17,504 transactions worth AED 54.48 billion in May 2025, according to Betterhomes. This marks a 15% increase in activity month-on-month and an 18% rise in total sales value.

Off-plan sales dominated with a 57% share of transactions, while rental activity grew by 15.3%. Popular areas included Dubai Hills Estate, JVC, Dubai Creek Harbour, and Business Bay.

Metro Projects Fuel Emerging Property Zones

Infrastructure remains a key driver of demand. The under-construction Blue Line metro, part of the Roads and Transport Authority’s expansion, is attracting attention from investors and developers alike. Areas situated near future metro stations are experiencing increased interest, with developers prioritising master communities along transit corridors.

Fitch: Property Prices Could Drop by 15%

Despite current strength, global credit rating agency Fitch has warned of a possible 15% correction in Dubai property prices as early as late 2025. The caution comes amid projections of more than 210,000 new residential units entering the market over the next 18 months.

Fitch notes that while demand remains high, the rapid supply growth—especially in mid-market segments—could outpace absorption rates. Nevertheless, it asserts that local banks and developers remain financially equipped to manage the risk.

73,000 New Homes Expected in 2025

According to property consultancy Cavendish Maxwell, approximately 73,000 new units are expected to be delivered this year. This forms part of Dubai’s broader development roadmap, aiming to deliver 300,000 new units by 2028.

The Q1 2025 performance was particularly strong, with over 42,000 sales recorded and property prices per square foot rising by 16% year-on-year.

Outlook: Innovation Amid Oversupply Concerns

Analysts say the city is undergoing a rare phase where technological innovation, high investor confidence, and infrastructure growth are converging. However, the same forces driving growth may also accelerate risks.

“Dubai’s real estate sector is entering a delicate phase where smart technologies and tokenisation are expanding access, but supply-side pressures could trigger a short-term price correction,” said a market analyst at Sand Stone Properties.

For now, Dubai continues to attract global attention—and capital. But as the pace of development accelerates, market watchers are urging caution and selective investment strategies.

This article is part of Sand Stone Properties’ Weekly Market Bulletin, bringing you the latest updates from Dubai’s real estate sector.