Dubai has taken a significant step toward reshaping how people invest in real estate, as authorities move forward with the next phase of property tokenisation — allowing the resale of digital property shares for the first time.
The announcement was made by the Dubai Land Department, which confirmed that resale of tokenised real estate shares will begin on February 20, marking the transition of the initiative from a testing phase to real market use.
The move is expected to make property investment more accessible to residents and expats by allowing people to buy and sell small digital portions of real estate, rather than entire properties.
What Is Real Estate Tokenisation?
Real estate tokenisation allows a single property to be divided into multiple digital shares, known as tokens. Each token represents partial ownership of a property and is digitally linked to an official title deed.
Instead of purchasing an entire apartment or villa, investors can own a fraction of a property, similar to holding shares in a company. Ownership details are recorded digitally and integrated into Dubai’s official land registration systems.
What Has Changed Now?
Until recently, the tokenisation system was being tested under existing property laws as part of the REES Real Estate Innovation Initiative, launched in March last year.
The latest announcement moves the project into Phase II, allowing existing token holders to resell their shares through a regulated secondary market. This is a key shift, as resale is essential for making any investment flexible and liquid.
According to the Dubai Land Department, around 7.8 million real estate tokens will be available for trading during this phase.
Why Resale Matters
Without resale, investors would need to hold their digital property shares until the underlying property is sold or the project ends.
With resale now permitted, investors can:
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Exit early if they need cash
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Rebalance their investment portfolios
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Respond to market opportunities
This flexibility brings tokenised property closer to traditional financial investments, rather than long-term, locked-in real estate ownership.
How Is This Different from Traditional Property Buying?
Conventional property investment typically involves:
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High upfront capital
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Long-term financial commitment
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Extensive paperwork
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Limited exit options
Tokenisation lowers the entry barrier by allowing smaller investments. Instead of needing hundreds of thousands of dirhams, investors can participate with much smaller amounts.
This opens the market to:
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First-time investors
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Residents unable to afford full units
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Investors seeking diversification rather than single-property exposure
Is the System Regulated?
Yes. Officials have stressed that this is not an unregulated crypto project.
The system operates under the oversight of the Virtual Assets Regulatory Authority and is integrated into Dubai’s official land registration framework.
All transactions will take place only on approved platforms, with safeguards designed to ensure transparency, investor protection, and market stability. The rollout is deliberately limited so authorities can monitor pricing, liquidity, and investor behaviour before any wider expansion.
Who Benefits from the New Rule?
For residents and expats:
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Lower-cost access to property investment
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Ability to buy and sell smaller stakes
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Greater flexibility compared to traditional ownership
For the market:
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Increased liquidity
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Improved transparency through digital records
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Broader participation in real estate
For Dubai:
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Stronger positioning as a global real estate and technology hub
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Support for long-term urban planning and economic diversification
Will This Replace Normal Property Ownership?
No. Full ownership of apartments, villas, and land will continue unchanged.
Dubai Land Department has made it clear that tokenisation is an additional option, not a replacement. The project is designed to expand gradually, based on market performance and regulatory approvals.
What Happens Next?
Authorities will closely track how the resale market performs over the coming months, focusing on:
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Ease of trading
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Price movement
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Investor demand
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Overall market stability
Based on these findings, Dubai may expand participation, approve additional platforms, or introduce new forms of tokenised real estate assets.
A Long-Term Shift
Dubai’s move reflects a broader strategy to modernise real estate, improve transparency, and use technology to manage growth more efficiently.
For residents, the key takeaway is clear: property investment in Dubai may no longer be limited to those who can afford to buy entire homes. Over time, owning a small share of the city’s real estate market could become more accessible, flexible, and manageable than ever before.
