The Dubai Land Department (DLD) has moved to the next stage of its property tokenisation project, with the secondary market for digital real estate tokens set to open on 20 February. This launch of Phase II marks a significant transition from the initial pilot scheme to a more advanced operational stage. The move allows for the resale of roughly 7.8 million real estate tokens within a strictly regulated environment. By enabling fractional ownership to be traded, Dubai aims to increase liquidity and accessibility for a broader range of investors, including residents and expatriates who can now invest with smaller capital outlays.

The project is a collaborative effort between the DLD, the Virtual Assets Regulatory Authority (VARA) and various technical partners. It follows a successful pilot phase launched in March under the “REES Real Estate Innovation Initiative,” which tested the regulatory and technical frameworks for linking digital tokens directly to property title deeds. Phase II is specifically designed to assess market efficiency and operational readiness while maintaining high standards of transparency and investor protection.

The initiative is closely aligned with the Dubai Real Estate Sector Strategy 2033, which seeks to double the sector’s contribution to Dubai’s GDP to AED 73 billion. It also supports the Dubai Urban Plan 2040 by promoting smart city solutions to manage urban growth. Officials have confirmed that the project will continue to expand gradually, with future decisions based on operational data to ensure market stability and investor confidence.

“The Real Estate Tokenisation Project serves as a key enabler of the objectives of the Dubai Real Estate Sector Strategy 2033, which focuses on strengthening market balance, enhancing transparency, enabling technology, and delivering an integrated investment experience,” the DLD stated. “This contributes to increasing the real estate sector’s share of Dubai’s GDP and reinforces the emirate’s position as a leading global hub for real estate investment, in alignment with the objectives of the UAE Vision 2071, aimed at consolidating global leadership and building a sustainable future economy.”

“DLD concluded by reaffirming that the Real Estate Tokenisation Project is a long-term strategic initiative that reflects Dubai’s vision of building a smart and sustainable real estate economy, enhancing the emirate’s global competitiveness, and cementing its position as a global laboratory for advanced real estate technologies.”