Dubai continues to be the spearhead in global real estate innovation, and one of the most transformative developments underway is real estate tokenisation, especially in the secondary property market. This new model uses blockchain technology to break traditional real estate ownership into digital tokens, enabling broader investor access and a more liquid property ecosystem.
How Secondary Property Tokenisation Works
The Dubai Land Department (DLD) and the Virtual Assets Regulatory Authority (VARA) have jointly developed a regulated model that enables resale of tokenised property interests in the secondary market. Phase II of this initiative, launched in early 2026, officially allows approximately 7.8 million real estate tokens representing existing (ready) property interests to be traded in a controlled environment.
The basics
Legal Framework & Title Deeds: Properties, usually via a structured entity like a ‘Special Purpose Vehicle’ (SPV) are recorded on blockchain platforms that integrate with Dubai’s title deed system.
Token Issuance: The asset is divided into digital tokens, each representing a proportional ownership stake. These tokens are legally backed by underlying title registered property rights.
Secondary Market Resale: Once issued, these tokens can be owned and resold in a regulated secondary market, which is currently scheduled to start on February 20, 2026. Platforms authorised under VARA manage issuance and trading within the regulatory framework.
This model builds on the original pilot phase launched in March 2025, which tested technical, legal, and governance frameworks for tokenisation on title deeds.
Here are some of the benefits of Tokenising Secondary Properties
1. Lower Entry Barriers
Tokenization opens up to a wider market with fractional ownership. This allows investors to invest with much smaller capital amounts compared to the current entry points for a whole property.
2. Enhanced Liquidity
Unlike the regular property transactions, which can stretch across months, tokenised assets can be sold and bought more easily in the secondary market, improving liquidity and investor flexibility.
3. Accessibility & Transparency
Blockchain records provide immutable, transparent ownership data, reducing fraud risk and enhancing transaction integrity under regulatory oversight.
4. Diversification & Inclusion
Fractional property ownership allows a much larger and international investor base to diversify their portfolios with exposure to Dubai’s property market without a full asset purchase.
Dubai’s real estate tokenisation ignites broader strategic goals aligned with Dubai Real Estate Sector Strategy 2033 and contributes to a more efficient, accessible real estate market.
For more information and updates, you can visit the Dubai Land Department’s announcement on Phase II of the Real Estate Tokenisation Project here.