Dubai Land Department Activates Secondary Market for Tokenized Property Resale

Dubai Pioneers Secondary Market for Tokenized Real Estate

The Dubai Land Department (DLD) has officially announced the commencement of Phase II of its groundbreaking Real Estate Tokenisation Project. This significant development will enable the resale of tokenized property shares in the secondary market, effective February 20, 2026. The move marks a strategic transition from a pilot phase to a more advanced operational stage, establishing a regulated framework for digital real estate transactions in the United Arab Emirates.

Approximately 7.8 million real estate tokens are set to become available for resale under this controlled pilot framework. The initiative is a collaborative effort between the DLD and the Virtual Assets Regulatory Authority (VARA), alongside other strategic partners.

Enhancing Market Efficiency and Investor Access

Phase II of the project is designed to rigorously assess market efficiency, test operational readiness, and bolster transparency and governance within Dubai's real estate sector. A primary objective is to safeguard investor rights while ensuring the integrity of all transactions.

The tokenization model allows for fractional ownership of properties, making real estate investment more accessible to a broader range of investors, including those with smaller capital. Minimum investments can start from as low as approximately AED 2,000. These tokens represent fractional stakes in registered properties and are denominated in UAE dirhams, rather than cryptocurrencies, integrating them within the conventional financial system while leveraging distributed-ledger technology.

From Pilot to Operational Framework

The foundation for this advanced phase was laid during the pilot stage, launched in March 2025 under the 'REES Real Estate Innovation Initiative'. This initial phase focused on testing the regulatory, legislative, and technical frameworks required for tokenizing real estate directly onto property title deeds. Dubai's pioneering efforts in this area positioned it as the first real estate registration authority in the region to adopt such a model within a formal regulatory environment.

Key platforms like PRYPCO Mint and Ctrl Alt are among the initial licensed entities facilitating these tokenized transactions. PRYPCO Mint, for instance, facilitated the region's first tokenized property transaction in May 2025.

Strategic Vision for Dubai's Real Estate Future

The Real Estate Tokenisation Project is a cornerstone of Dubai's broader economic and urban development strategies. It aligns with the objectives of the Dubai Real Estate Sector Strategy 2033, which aims to double the sector's contribution to Dubai's GDP to AED 73 billion and increase total transaction values to AED 1 trillion. The DLD anticipates that tokenized assets could represent up to 7% of Dubai's real estate market by 2033, equivalent to approximately $16 billion.

Furthermore, the initiative supports the UAE Vision 2071, which focuses on building a sustainable, innovation-driven economy, and the Dubai Urban Plan 2040, emphasizing smart and sustainable urban development. The DLD continues to collaborate with VARA and technical partners to develop standards for future phases, with expansion plans subject to regulatory approvals and performance evaluations.