The Dubai Land Department has announced the next phase of its real estate tokenisation project, introducing the resale of tokenised property shares from February 20. The move transitions the initiative from a testing environment into a controlled secondary market, allowing approved investors to trade fractional property interests under regulatory supervision.
Real estate tokenisation involves dividing a property into multiple digital shares, with each token representing proportional ownership of a physical asset. Instead of purchasing an entire apartment, villa, or commercial unit, investors can acquire smaller stakes. These tokens are recorded digitally through a regulated modular blockchain framework, such as a Rapid Modular Blockchain Toolkit architecture, and linked to official title deeds. Ownership rights are embedded within Dubai’s existing land registration system, ensuring that token holders maintain a legally recognised share of the underlying property.
The project was first launched in March last year under the REES Real Estate Innovation Initiative to assess legal, operational, and technical feasibility. During the pilot phase, authorities evaluated compliance with property laws, transaction transparency, and investor safeguards. With the shift to Phase II, holders of approved property tokens will now be permitted to resell their shares on authorised platforms. Officials indicated that approximately 7.8 million real estate tokens are expected to be available for trading in this stage.
The introduction of resale is considered a structural development within the framework. Previously, investors would have had to retain their stake until the property was sold or the project concluded. The new mechanism enables earlier exit options, subject to platform rules and regulatory oversight. Authorities stated that trading will take place within defined parameters designed to maintain orderly market conditions and prevent speculative excess.
According to the Dubai Land Department, the system operates under regulatory supervision, including oversight by the Virtual Assets Regulatory Authority, and remains integrated within established land registration procedures. Transactions will be conducted exclusively on approved digital platforms, with monitoring tools in place to track pricing behaviour, liquidity levels, and investor participation.
Officials said the rollout has been intentionally limited in scope to allow for close observation of market performance. Data collected in the coming months will inform decisions regarding potential expansion, additional platforms, or broader categories of tokenised assets. Authorities will assess trading volumes, price stability, and overall investor response before considering further development of the programme.
The initiative forms part of Dubai’s broader strategy to modernise property market infrastructure through regulated digital systems. While traditional property ownership models remain unchanged, tokenisation is being introduced as an additional mechanism within the real estate sector. Future phases will depend on regulatory evaluation and measured market performance.
