Dubai Opens Secondary Market for Tokenised Property Stakes Under Regulated

Dubai has taken another step toward modernising its property market with the launch of Phase II of the Real Estate Tokenisation Project, allowing investors to resell digital property stakes in a regulated secondary market from February 20. The move signals a transition from controlled pilot testing to real-world execution, reinforcing the emirate’s ambition to blend real estate with advanced financial technology.

Announced by the Dubai Land Department, the new phase enables resale of tokenised ownership units that represent fractional stakes in property assets. These digital tokens, linked directly to title deeds, can be traded on approved platforms under regulatory oversight, ensuring transparency, investor protection and transaction integrity.

The project builds on groundwork laid during the pilot phase launched in March under the REES Real Estate Innovation Initiative. During that stage, authorities worked closely with the Virtual Assets Regulatory Authority and selected partners to test the legal, technical and operational feasibility of tokenising real estate within Dubai’s existing registration systems. Officials say the pilot confirmed that tokenisation can function effectively within a regulated environment, positioning Dubai as a regional first-mover in this space.

Phase II focuses specifically on secondary market activity. Around 7.8 million real estate tokens will be made available for trading as part of a controlled rollout. Regulators will closely monitor pricing behaviour, liquidity patterns, governance standards and investor safeguards, using real transaction data to guide decisions on future expansion.

Officials emphasised that the transition is being handled cautiously. Rather than scaling up rapidly, authorities plan to rely on operational evidence and coordination with regulators before broadening participation or onboarding additional platforms. This data-driven approach is intended to minimise systemic risk while building confidence among both local and international investors.

The tokenisation initiative aligns with long-term policy goals, including the Dubai Real Estate Sector Strategy 2033 and UAE Vision 2071, both of which prioritise transparency, digital enablement and sustainable economic growth. By lowering entry barriers and enabling fractional ownership, tokenisation is expected to broaden access to property investment and enhance the sector’s contribution to the economy.

Industry observers note that such regulatory clarity also strengthens Dubai’s appeal for entrepreneurs and global investors exploring business setup in dubai, as a transparent and tech-enabled property ecosystem is increasingly seen as a key factor in long-term investment decisions.

As Phase II unfolds, Dubai Land Department said work continues with regulatory and technical partners to refine standards for future stages. While tokenised real estate remains a long-term initiative, officials believe the gradual introduction of secondary market trading marks a significant milestone toward building a fully integrated digital real estate ecosystem.