Dubai Allows Resale of Property Stakes as Real Estate Tokenisation Enters Phase II
Dubai has taken a significant step toward integrating digital assets into its property market, with the Dubai Land Department (DLD) officially launching Phase II of its Real Estate Tokenisation Project. Beginning February 20, secondary market trading of tokenised property shares will be permitted under a regulated framework, marking the transition from pilot testing to real-world operational execution.
This development signals Dubai’s continued push toward a technology-driven, transparent, and regulated real estate ecosystem while maintaining investor protection and oversight.
From Pilot to Operational Market
The tokenisation initiative was first introduced in March under the REES Real Estate Innovation Initiative. During the pilot phase, authorities tested the regulatory, legislative, and technical foundations required to tokenise real estate assets directly on official title deeds.
The pilot was conducted in collaboration with the Virtual Assets Regulatory Authority (VARA) and selected strategic partners. Authorities evaluated how digital property shares could function within Dubai’s existing land registration and ownership systems.
Following the pilot’s success, Dubai now positions itself as the first real estate registration authority in the region to implement tokenisation within a formally regulated environment.
What Real Estate Tokenisation Means
Real estate tokenisation allows property assets to be divided into digital tokens, each representing fractional ownership of a property. These tokens are digitally recorded and legally linked to official title deeds.
Investors can buy, sell, or transfer these ownership shares through approved platforms, subject to regulatory controls and governance standards.
This approach lowers capital barriers, increases flexibility, and introduces liquidity into a traditionally illiquid asset class.
Secondary Market Trading Begins February 20
Phase II focuses on enabling resale activity. Approximately 7.8 million real estate tokens will be made available for trading in the secondary market under a controlled pilot framework.
The objective of this controlled rollout is to:
- Assess market efficiency under real trading conditions
- Monitor pricing, liquidity, and investor demand
- Ensure transparency and governance compliance
- Protect investor rights
Dubai Land Department emphasized that implementation will remain cautious and data-driven, ensuring transaction integrity and minimizing systemic risk.
Data-Based Expansion Strategy
The transition to Phase II follows a structured and measured approach. Expansion decisions will be based on operational data and regulatory alignment rather than fixed timelines.
DLD confirmed that future development of the tokenisation framework will depend on performance reviews, market behavior, and coordination with VARA and other regulatory bodies.
This approach is designed to strengthen confidence among both local and international investors.
Alignment with Dubai’s Long-Term Vision
The Real Estate Tokenisation Project directly supports several major strategic frameworks:
- Dubai Real Estate Sector Strategy 2033 – Focused on market balance, transparency, digital enablement, and enhanced investor experience.
- UAE Vision 2071 – Aims to strengthen global competitiveness and build a diversified, innovation-driven economy.
- Dubai Urban Plan 2040 – Prioritizes smart growth, sustainable land use, and quality of life improvements.
Authorities believe tokenisation can broaden access to real estate investment, enhance transparency, and increase the sector’s contribution to GDP while supporting better urban planning through improved data availability.
Why This Matters for Investors
Secondary trading introduces liquidity — a feature traditionally absent from property investment. Previously, investors had to wait for full asset sales or project completion to exit their positions.
With resale now permitted, investors can:
- Rebalance portfolios
- Access capital earlier
- Adjust exposure to market movements
Importantly, this is not an unregulated crypto initiative. All trading will occur through approved platforms under regulatory supervision, with investor protection mechanisms embedded within Dubai’s land registration framework.
Next Phase Under Review
Dubai Land Department continues to collaborate with VARA and operational partners to refine regulatory and technical standards for future phases. Authorities are also evaluating the onboarding of additional platforms, subject to regulatory approval and current phase performance outcomes.
The long-term objective remains clear: to create an integrated digital real estate ecosystem that enhances efficiency, transparency, and investor confidence while positioning Dubai as a global testing ground for advanced property technologies.
Conclusion
Dubai’s move to allow resale of tokenised property stakes marks a structural evolution in how real estate can be accessed and traded. While the rollout remains controlled and data-driven, the direction is clear: greater liquidity, broader investor participation, and deeper digital integration within a regulated framework.
For investors, this represents not disruption — but modernization — of one of the world’s most active property markets.
