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The Dubai Land Department (DLD) has officially moved its pioneering blockchain initiative into a new operational era with the launch of Phase II of the Real Estate Tokenisation Project. Starting 20 February 2026, the project transitions from its initial pilot phase to an advanced operational stage, enabling the active resale of property tokens in the secondary market. This landmark development reinforces Dubai’s status as a global leader in digital property innovation, providing a regulated framework for the exchange of approximately 7.8 million real estate tokens.
Key Highlights of the News
- Secondary Market Activation: For the first time, investors can participate in the resale of 7.8 million real estate tokens within a controlled, regulated environment.
- Transition to Operational Stage: The project has successfully moved beyond its pilot testing phase, which began in March 2025 under the ‘REES Real Estate Innovation Initiative.’
- Regional Pioneer: Dubai remains the first real estate registration authority in the Middle East to integrate tokenisation directly into property title deeds.
- Strategic Alignment: The project is a core pillar of the Dubai Real Estate Sector Strategy 2033 and aligns with the Dubai Urban Plan 2040 and UAE Vision 2071.
- Regulatory Oversight: Implementation is being carried out in close coordination with the Virtual Assets Regulatory Authority (VARA) to ensure investor protection.
What is Real Estate Tokenisation?
Real Estate Tokenisation is the process of converting ownership rights of a physical property into digital tokens on a blockchain. In Dubai’s model, these tokens are directly linked to the official title deeds registered with the DLD.
Instead of requiring an investor to purchase an entire apartment or villa, which involves high capital and lengthy paperwork, the property is fractionalised. This means a single asset can be divided into millions of digital units. Each unit or token represents a specific share of the property, giving the holder legal rights to a portion of the asset’s value and any rental income it generates. This digital evolution transforms real estate from a static, lumpy asset into a liquid, tradable digital security.
What does this Mean for Users
The activation of Phase II and the introduction of the secondary market bring several transformative benefits to local and international investors:
Unprecedented Liquidity
Historically, real estate is an illiquid asset that takes months to sell. Real Estate Tokenisation allows investors to exit their positions by selling tokens on the secondary market almost instantly.
Lower Entry Barriers
By allowing fractional ownership, the entry cost for high-value Dubai real estate is drastically reduced, making it accessible to a broader range of income brackets.
Enhanced Transparency
Every transaction and resale is recorded on a tamper-proof digital ledger, providing total clarity on ownership history and transaction integrity.
Automated Governance
The use of smart contracts ensures that rental distributions and resale rules are executed automatically and accurately, safeguarding investors’ rights.
Portfolio Diversification
Investors can now spread their capital across multiple properties, such as a fraction of a villa in Palm Jumeirah and an office in Business Bay, rather than being tied to a single unit.
Final Words
The launch of Phase II marks a decisive step toward a more efficient and transparent property market. By enabling the resale of 7.8 million tokens, the Dubai Land Department is proving that Real Estate Tokenisation is not just an experiment but a fundamental shift in how the world invests in property. As the project continues to evolve in collaboration with VARA and technical partners, it sets a global blueprint for a smart, sustainable, and inclusive real estate economy that will drive Dubai’s growth for decades to come.
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