Dubai has taken a major step toward the future of property investment by enabling a secondary market for tokenised real estate, allowing investors to resell digital property tokens within a regulated framework.

The initiative is being rolled out by the Dubai Land Department as part of Phase II of its Real Estate Tokenisation Project, marking a shift from pilot testing to real market application.

What Is Tokenised Real Estate?

Tokenised real estate allows property ownership to be digitally divided into smaller units, or tokens, which are backed by official title deeds. These tokens can be bought, sold, and transferred securely using approved digital platforms, making real estate investment more accessible and liquid.

With the introduction of a secondary market, investors are no longer limited to holding tokens until project maturity. Instead, they can resell their holdings, creating flexibility similar to traditional financial markets.

Secondary Market Launch and Scope

Phase II of the initiative will allow the resale of millions of real estate tokens under a controlled pilot framework. The goal is to test market efficiency, operational readiness, and transaction integrity while maintaining strong investor protection standards.

The rollout follows a gradual, data-driven approach to ensure compliance with existing legal and regulatory frameworks and to support long-term scalability.

Dubai is the first real estate registration authority in the region to formally introduce tokenised property transactions under regulation, reinforcing its leadership in real estate innovation.

Regulatory Oversight and Market Confidence

The project is being developed in coordination with the Virtual Assets Regulatory Authority, ensuring that tokenised property transactions align with Dubai’s broader digital asset regulations.

This structured oversight is designed to:

• Improve transparency in property ownership
• Strengthen investor confidence
• Enhance governance and data accuracy
• Safeguard transaction security

By integrating real estate with regulated digital asset frameworks, Dubai is creating a secure environment for next-generation property investment.

Strategic Impact on Dubai’s Real Estate Market

The tokenisation initiative supports the Dubai Real Estate Sector Strategy 2033, which aims to increase the sector’s contribution to GDP, enhance market balance, and adopt advanced technologies across the value chain.

In the long term, tokenised real estate is expected to:

• Lower entry barriers for investors
• Increase market liquidity
• Enable fractional ownership of high-value assets
• Attract global capital through regulated digital access

This move aligns with Dubai’s vision to position itself as a global hub for innovation-driven real estate investment.

What This Means for Investors

For investors, the introduction of a secondary market represents a shift toward greater flexibility and liquidity in property ownership. The ability to enter and exit positions more efficiently could reshape how real estate portfolios are structured in the UAE.

As the pilot expands and data is evaluated, tokenised real estate may become a permanent and scalable component of Dubai’s property ecosystem.