Dubai Activates Secondary Market Trading for Tokenised Real Estate

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Dubai's tokenized property resale rule goes live; secondary market liquidity to surge.

The Dubai Land Department activated Phase II of its Real Estate Tokenisation Project on 20 February 2026, enabling secondary market resale of tokenised property stakes.
Approximately 7.8 million real estate tokens representing fractional interests in residential properties are eligible for trading under the controlled pilot framework.
VARA's Asset-Referenced Virtual Asset (ARVA) rules require issuers and marketplaces to hold a Category 1 Virtual Asset Issuance licence and comply with KYC/AML standards.
All transactions are settled in UAE dirhams via regulated channels, removing cryptocurrency exchange-rate risk for investors.
Token sellers must list within a plus or minus 15 percent band of DLD's current property valuation to prevent price manipulation.
DLD projects that tokenised assets could represent up to 7 percent of Dubai's real estate market by 2033, equivalent to approximately USD 16 billion.

VARA's ARVA Framework Underpins Dubai's Tokenised Property Market

Dubai's move into secondary market trading for tokenised real estate sits within a broader regulatory architecture that the Virtual Assets Regulatory Authority (VARA) has been building since its inception. VARA's updated rulebook, effective from 19 June 2025, formally classifies property-backed tokens as Asset-Referenced Virtual Assets (ARVAs). This designation triggers licensing requirements, KYC/AML obligations, and conduct-of-business standards for issuers and marketplaces alike.

This regulatory scaffolding is central to the Real Estate Tokenisation Project's credibility with institutional and retail investors. Platforms such as PRYPCO Mint, which serve as the primary trading interface, must operate within VARA's authorisation perimeter. This gives participants confidence that their transactions occur in a supervised environment rather than an unregulated marketplace.

Phase II Live on 20 February

On 20 February 2026, the Dubai Land Department (DLD) activated Phase II of its Real Estate Tokenisation Project, formally opening a secondary market for the resale of fractional, tokenised property stakes. This follows Phase I, which launched in March 2025 and focused on tokenising title deeds, testing legal frameworks, and executing the first regulated tokenised property transaction in UAE dirhams. The activation marks a significant step in Dubai's strategy to digitise and democratise access to its property market.

Phase II is structured as a controlled pilot rather than a full market opening, with DLD emphasising a gradual, data-driven approach. Authorities intend to monitor trading behaviour, settlement performance, and operational risk closely before considering broader expansion. Future onboarding of additional platforms and properties will depend on measured performance and regulatory review.

Scope and Scale of the Secondary Market

Approximately 7.8 million real estate tokens representing fractional interests in a curated range of residential properties - apartments and villas - are eligible for secondary trading under the pilot. According to Gulf News, this token pool provides a significant initial test of liquidity dynamics in a tokenised property market. DLD has projected that tokenised assets could represent up to 7 percent of Dubai's total real estate market by 2033, equivalent to roughly USD 16 billion.

The policy goal is to inject liquidity into a sector historically defined by high entry costs and limited exit options for smaller investors. Tokenisation has already demonstrated its democratising potential: Asia IP Law reported that fractional stakes in premium Dubai properties, including penthouses, have been purchased for relatively low entry amounts. This illustrates how the model can open high-end real estate to a significantly wider investor base.

How Resale Trading Works in Practice

From the go-live date, qualifying token holders can list their fractional stakes on approved platforms such as PRYPCO Mint, subject to completing KYC verification and meeting platform-specific requirements. Listing prices must fall within a plus or minus 15 percent band around DLD's current property valuation, a control designed to prevent extreme price manipulation and encourage trading near fair value. All transactions are settled in UAE dirhams through regulated financial channels, removing the exchange-rate volatility associated with cryptocurrency settlement.

Ctrl Alt, DLD's tokenisation infrastructure partner, supports the underlying token issuance rails, custody, and transfer logic, while DLD retains authority of record for all title deeds. Metropolitan Premium Properties notes that this clear division of responsibilities is central to maintaining the legal integrity of the tokenised ownership model.

Legal Protections and Investor Safeguards

Tokens are legally linked to DLD-registered title deeds, meaning each token represents a clearly defined, legally enforceable share of a specific property within Dubai's existing land registry system. This direct link gives token holders recourse through established property-law mechanisms - a significant distinction from crypto-native asset models where ownership rights can be ambiguous. DLD has confirmed that Phase II is being implemented in close coordination with VARA and the Central Bank of the UAE.

VARA's ARVA framework adds a further layer of protection by requiring issuers to hold a Category 1 Virtual Asset Issuance licence and meet governance and risk-management standards. Exchanges and broker-dealers distributing or listing such tokens must similarly operate under VARA authorisation, with enhanced market-integrity requirements applying throughout. The Tokenizer blog notes that these rules bring real estate tokens firmly within the mainstream of Dubai's regulated virtual-asset ecosystem.

Strategic Significance for Dubai's Property Market

DLD describes the initiative as making Dubai the first real estate registration authority in the region to adopt tokenisation within a fully regulated environment. The department frames the programme as a "global laboratory" for advanced real estate technologies, with secondary trading now providing the proof of concept that fractional ownership can be both liquid and legally sound. A memorandum of understanding between DLD and VARA, signed in April 2025, underscored the strategic alignment between Dubai's property and virtual asset regulators.

For developers, issuers, and marketplace operators, Phase II provides clearer compliance expectations under VARA's ARVA regime and confirms that regulated secondary trading is now a viable commercial reality. The initiative is already attracting interest as a potential reference model for other jurisdictions exploring how tokenised real estate can be integrated with an official land registry and local fiat settlement.

What Clients are Asking their Advisors

What is real estate tokenisation and how does it work in Dubai?

Real estate tokenisation converts fractional ownership rights in a property into digital tokens recorded on a blockchain. In Dubai, these tokens are legally linked to title deeds registered with the Dubai Land Department, giving each token holder a clearly defined, legally enforceable share of a specific property under the emirate's existing land registry system.

How do I buy or sell tokenised property stakes in Dubai's secondary market?

Eligible investors can list and trade fractional property tokens through regulated platforms such as PRYPCO Mint, after completing KYC verification. Sellers must price tokens within plus or minus 15 percent of DLD's current property valuation, and all transactions are settled in UAE dirhams rather than cryptocurrency.

How is owning a tokenised property stake different from investing in a REIT?

A REIT (Real Estate Investment Trust) is an investment fund that pools capital across multiple properties, giving investors a share in the fund rather than a specific asset. Dubai's tokenised model gives holders a direct fractional interest in a particular DLD-registered property, with legally recognised ownership rights enforceable through standard property law.

What are the main risks of investing in Dubai's tokenised real estate secondary market?

The secondary market remains in a controlled pilot phase, meaning liquidity may be limited and the range of eligible platforms and properties is currently restricted. Investors should also note that the regulatory framework continues to evolve, with future market access and platform approvals subject to ongoing supervisory review by DLD and VARA.