Dubai Land Department Launches Phase II of Real Estate Tokenisation Project

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Real estate tokenisation in Dubai moves to live market use; a major leap for alternative investments.

Dubai Land Department confirms Phase II of Real Estate Tokenisation Project will activate secondary market trading from 20 February 2026.
Approximately 7.8 million real estate tokens representing fractional property ownership will be available for resale under regulated conditions.
The initiative operates through VARA-licensed platforms PRYPCO Mint and Ctrl Alt, with minimum investments starting around AED 2,000.
DLD aims for tokenised assets to represent 7% of Dubai's real estate market by 2033, equivalent to roughly USD 16 billion.
The project integrates blockchain-based ownership records directly into DLD's title deed system, enabling fractional ownership with legal registry backing.
Phase II supports Dubai Real Estate Sector Strategy 2033 and UAE Vision 2071 by increasing market transparency and expanding investor access.

Virtual Assets Authority Oversight Shapes Tokenisation Framework

On 10 February, the Dubai Land Department (DLD) confirmed that its Real Estate Tokenisation Project is advancing to Phase II, marking a shift from closed pilot testing to live secondary market trading. The Virtual Assets Regulatory Authority (VARA) provides licensing oversight for platforms authorised to issue and manage tokenised property interests. Phase II enables fractional ownership of Dubai real estate through blockchain-recorded tokens, with secondary market trading scheduled to begin on 20 February. PRYPCO Mint and Ctrl Alt serve as the initial licensed platforms under this regulated model.

The initiative forms part of Dubai's broader digital transformation agenda for the property sector. By integrating tokenised interests directly into title deed records, DLD is positioning fractional real estate investment as a structured alternative asset class. The authority states that approximately 7.8 million tokens will enter resale circulation during Phase II, allowing both institutional and retail investors to trade property-backed digital assets within a controlled regulatory environment.

Phase II Activates Live Token Resales

DLD stated that Phase II will formally activate resale activity in the secondary market from 20 February, enabling the resale of approximately 7.8 million real estate tokens within a controlled pilot framework. The authority said this phase is designed to assess market efficiency, test operational readiness, enhance transparency and governance, and safeguard investors' rights while ensuring transaction integrity throughout token trades.

The transition is being undertaken gradually, with DLD emphasising that implementation is based on practical evaluation of outcomes and close coordination with relevant regulatory authorities to inform future decisions grounded in clear operational data. The Real Estate Tokenisation Project sits under the REES Real Estate Innovation Initiative, also referred to as the Real Estate Evolution Space, which was launched as part of Dubai's wider real estate digital transformation agenda.

Regulatory Structure and Platform Licensing

In Dubai's model, tokenisation is currently permitted only via entities licensed by VARA and approved by DLD. During the early pilot, two authorised companies - PRYPCO Mint and Ctrl Alt - were identified as key platforms working with DLD to offer fractionalised real estate investment products. PRYPCO Mint was highlighted as the cornerstone platform of the transformation, with DLD indicating that tokenised assets could account for up to 7% of Dubai's real estate market by 2033, equivalent to around USD 16 billion in value.

Early offerings on PRYPCO Mint involved ready-to-own properties, with minimum investments around AED 2,000 and initial access restricted to UAE ID holders, prior to staged expansion to a broader investor base. Ctrl Alt, described as a leading tokenisation infrastructure platform, was announced as a tokenisation partner for DLD's project, responsible for providing the underlying technology to enable issuance and lifecycle management of fractional real estate tokens.

Blockchain Integration with Land Registry

According to DLD and partner communications, real estate tokenisation in Dubai involves converting traditional property rights into digital tokens recorded on a blockchain, enabling both institutional and retail investors to own fractions of properties through property-backed tokens. These tokens represent specific ownership interests in the underlying real estate asset, with rights and obligations enforced via smart contracts and integrated into DLD's title deed infrastructure.

Experts note that this approach aims to deliver true fractional ownership of real estate, rather than indirect exposure typical of some crowdfunding models, because token holders obtain defined ownership rights anchored in the land registry. DLD's blockchain platform supports real-time verification of ownership and encumbrances, and it automates compliance checks and regulatory reporting tied to token transfers. Before any property is listed for tokenisation, DLD reviews and validates the fairness of the property's pricing, adding an extra layer of investor protection.

Alignment with Strategic Policy Goals

DLD positions the Real Estate Tokenisation Project as a strategic enabler of several national and emirate-level plans. The initiative is directly linked to the Dubai Real Estate Sector Strategy 2033, which aims to reinforce market balance, increase transparency, embed technology in real estate processes, and deliver an integrated investment experience that boosts the sector's share of Dubai's GDP.

It also supports the Dubai Urban Plan 2040 by promoting smart and sustainable urban models, better land-use efficiency, and digital solutions suited to rapid urban growth and demographic expansion. On a longer horizon, the project aligns with UAE Vision 2071, which focuses on consolidating the country's global leadership and creating a sustainable, innovation-driven economy.

Expected Market Impact and Investor Access

Commentaries from legal and industry experts argue that tokenisation is expected to enhance liquidity in an asset class traditionally considered illiquid, lower minimum investment thresholds, open access to younger and international investors, and enable more granular portfolio diversification across multiple properties. Blockchain-based record-keeping is cited as a means to improve security and transparency, with immutability of records and auditable transaction histories reducing fraud risk and building investor confidence.

From an investor experience standpoint, the model is designed to make the process of buying and selling fractions of property more similar to trading shares or digital assets, potentially allowing quicker settlement and lower operational friction compared with conventional property transactions. Smart contracts can automatically execute transfers once conditions are met, handle distribution of rental income or returns, and manage corporate actions on behalf of token holders.

Controlled Expansion Path

The controlled pilot framework and gradual expansion path signal a cautious approach. DLD states that further phases, additional platform onboarding, and broader participation will be subject to ongoing evaluation and required regulatory approvals. The broader regulatory environment is shaped by coordination between DLD, VARA, the Dubai Future Foundation, and the Central Bank of the UAE, which are involved in setting standards, overseeing licensing, and ensuring financial system integrity.

Legal analyses of the regime explain that tokenisation activities must comply with UAE property and virtual asset laws, including requirements around licensing of tokenisation platforms, anti-money-laundering and counter-terrorist-financing controls, investor disclosures, and integration with the official land registration system.