Dubai has taken a major step toward digitalizing its property sector. The Dubai Land Department (DLD) announced the launch of Phase II of its Real Estate Tokenization Project, allowing resale of property tokens in the secondary market starting February 20. The move shifts the initiative from pilot testing to live market execution.
DLD said the new phase strengthens Dubai’s transition toward a regulated, technology-driven real estate ecosystem. The project aims to introduce advanced digital solutions while ensuring transparency, oversight, and investor protection.
Phase II follows the pilot stage launched in March under the REES Real Estate Innovation Initiative. During that stage, authorities tested the legal, regulatory, and technical systems required to tokenize property assets directly on title deeds.
The pilot was conducted in partnership with the Virtual Assets Regulatory Authority (VARA) and other strategic stakeholders. Officials examined how tokenized property ownership could integrate with existing registration frameworks.
DLD confirmed that the pilot demonstrated the viability of tokenization within a regulated structure. With this rollout, Dubai becomes the first real estate registration authority in the region to implement tokenization under formal regulatory supervision.
Tokenization divides property assets into digital tokens representing ownership shares. Investors can buy, sell, or transfer these tokens through approved platforms, subject to regulatory controls.
Phase II focuses on enabling resale activity. Around 7.8 million real estate tokens will enter the secondary market under a controlled pilot framework. Authorities will evaluate trading efficiency, operational readiness, governance standards, and investor safeguards during this phase.
DLD stated that the expansion follows a cautious and data-driven approach. Officials will base future decisions on operational performance and regulatory assessments rather than fixed timelines. This strategy aims to reduce systemic risks while strengthening investor confidence.
The Real Estate Tokenization Project supports the Dubai Real Estate Sector Strategy 2033, which prioritises transparency, digital transformation, and market sustainability. Authorities expect tokenisation to broaden access to property investment and increase the sector’s contribution to GDP.
The initiative also aligns with UAE Vision 2071 and the Dubai Urban Plan 2040. Officials believe digital tools such as tokenisation will support smarter urban planning, efficient land use, and sustainable growth.
DLD continues to work with VARA and technical partners to refine regulatory and operational standards. Authorities are also reviewing the potential expansion of participation to additional platforms, subject to regulatory approval and performance outcomes.
Dubai views real estate tokenisation as a long-term strategy. The goal is to build a fully integrated digital property ecosystem that enhances market efficiency, strengthens investor confidence, and reinforces Dubai’s role as a global leader in real estate innovation.
