Secondary market trading to begin on February 20 under regulated framework
Dubai: Dubai has moved closer to integrating digital assets into its property market after the Dubai Land Department announced the launch of Phase II of its Real Estate Tokenisation Project. The new phase enables resale activity in the secondary market, starting 20 February, marking a shift from pilot testing to operational execution.
The department said the move reflects the project’s progression toward a regulated, technology-driven real estate model. The initiative aims to prepare the market for wider adoption of advanced digital solutions while maintaining oversight, transparency, and investor protection.
Phase II follows the pilot stage launched in March under the REES Real Estate Innovation Initiative. That phase focused on testing the regulatory, legislative, and technical foundations required to tokenise real estate assets directly on title deeds.
Pilot phase laid groundwork
The pilot was carried out in collaboration with the Virtual Assets Regulatory Authority and a group of strategic partners. During this period, authorities assessed how tokenised real estate could operate within existing registration and ownership systems.
Dubai Land Department said the pilot confirmed the feasibility of applying tokenisation within a regulated environment. The emirate now positions itself as the first real estate registration authority in the region to adopt this model under formal regulatory oversight.
Tokenisation allows real estate assets to be divided into digital tokens that represent ownership shares. These tokens can then be bought, sold, or transferred through approved platforms, subject to regulatory controls.
Secondary market trading
Phase II centres on enabling resale activity. Around 7.8 million real estate tokens will be made available for trading in the secondary market as part of a controlled pilot framework.
According to the department, the goal is to assess market efficiency and operational readiness under real trading conditions. Authorities will also monitor transparency, governance standards, and the protection of investor rights.
The controlled rollout is designed to ensure transaction integrity while gathering data on pricing, liquidity, and demand. This information will inform future decisions on whether and how the project is expanded.
Data-based expansion
Dubai Land Department said the transition to Phase II follows a gradual and cautious approach. Implementation will be guided by practical evaluation of outcomes and close coordination with relevant regulatory bodies.
Officials said decisions on future expansion will be based on clear operational data rather than timelines alone. This method is intended to ensure alignment with existing laws and regulations while strengthening confidence among local and international investors.
The department said the measured approach also reduces systemic risk as new technology is introduced into the property market.
Long-term strategies
The Real Estate Tokenisation Project supports the goals of the Dubai Real Estate Sector Strategy 2033. That strategy focuses on market balance, transparency, digital enablement, and improving the overall investor experience.
Authorities expect tokenisation to help broaden access to real estate investment and increase the sector’s contribution to Dubai’s gross domestic product. The project also supports efforts to reinforce Dubai’s position as a global hub for real estate investment.
The initiative aligns with the UAE Vision 2071, which aims to strengthen global competitiveness and build a diversified, sustainable future economy driven by innovation and technology.
Urban planning goals
The project is also linked to the Dubai Urban Plan 2040, which prioritises quality of life, smart growth, and efficient land use.
Officials said digital tools such as tokenisation can support better management of urban expansion and future population growth. By improving transparency and data availability, authorities aim to enhance long-term planning and sustainability outcomes.
Next steps under review
Dubai Land Department said work is ongoing with VARA and technical and operational partners to develop regulatory and technical standards for future phases of the project.
Authorities are also studying the possibility of expanding participation and onboarding additional platforms, subject to regulatory approval and performance reviews from the current phase.
The department said real estate tokenisation remains a long-term strategic initiative. The objective is to build an integrated digital real estate ecosystem that supports market efficiency, investor confidence, and Dubai’s position as a testing ground for advanced real estate technologies.
