Dubai Enters New Era: Launches Regulated Resale Market for Property Tokens

Dubai is pioneering a transformative shift in real estate investment with the launch of the second phase of its property tokenization project. Starting February 20, 2026, the Dubai Land Department (DLD) will open a regulated secondary market for the resale of digital property shares, moving from a pilot program to a fully functional marketplace. This allows investors to buy and sell fractional ownership in real estate, dramatically increasing accessibility and liquidity.

What is Real Estate Tokenization?

Tokenization converts a physical property into digital shares (tokens) on a blockchain. Each token represents a fractional ownership stake, linked to the official property title deed. This enables investors to own a piece of high-value assets without the need for large capital outlays.

The Game-Changer: A Regulated Resale Market

The key advancement in Phase II is the introduction of a secondary market. Previously, during the 2025 pilot, investors could buy tokens but could not resell them. Now, owners can trade their tokenized shares on approved platforms, providing:

• Enhanced Liquidity: Exit investments without waiting for the entire property to sell.
• Greater Flexibility: React to market changes or personal financial needs quickly.
• Lower Barriers: Invest with smaller amounts of capital, making real estate accessible to a broader audience, including younger buyers and expatriates.

DLD estimates 7.8 million property tokens will become tradable, indicating the initiative's significant scale.

A Secure, Regulated Framework

Crucially, this is not an unregulated cryptocurrency venture. The system operates under the strict oversight of the Virtual Assets Regulatory Authority (VARA) and is integrated into Dubai's official property registry. Trades occur only on approved platforms, ensuring transparency, legal backing, and investor protection.

Who Benefits from This Innovation?

• Everyday Residents & Expatriates: Gain affordable entry into the Dubai property market.
• Small & Medium Investors: Build diversified real estate portfolios without massive capital.
• The Broader Market: Increased liquidity and participation can attract more local and international investment, solidifying Dubai's status as a global real estate and fintech innovator.

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The Bigger Picture and Future Outlook

This initiative aligns with Dubai's broader strategy to democratize property ownership through technology. It follows other successful programs aiding first-time buyers. Authorities will monitor the secondary market's early performance, with potential to expand tokenization to more asset classes in the future.

By blending blockchain technology with robust regulation, Dubai is setting a new global standard, making real estate investment more flexible, liquid, and inclusive than ever before.