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Dubai Land Department (DLD) has officially announced phase 2 of the real estate tokenization project, with a key highlight being the allowance of resale transactions on the secondary market, expected to commence on February 20, 2026.
This move marks a new step in the strategy to digitize and modernize Dubai’s real estate market, bringing the tokenized property model closer to large-scale practical operation.
From Primary Experimentation to Secondary Market
In phase 1, the project focused on:
- Tokenizing eligible real estate assets
- Allowing investors to purchase ownership shares through a digital platform
- Testing the legal and blockchain technology infrastructure
In phase 2, DLD will unlock the function of reselling real estate tokens, helping to:
- Increase liquidity for investors
- Form a market pricing mechanism based on supply and demand
- Bring real estate tokens closer to traditional financial standards
According to the Dubai Land Department (DLD), real estate token transactions on the secondary market will be implemented within a tightly regulated legal framework, directly linked to Dubai’s official land registry system. This mechanism aims to ensure legal ownership, transparency, and investor protection, while minimizing risks arising when assets are traded in token form. Allowing resale demonstrates that Dubai is not just stopping at technology experimentation but is gradually building a complete legal infrastructure for the tokenized real estate model.
Dubai has long aimed to become a global hub for blockchain, digital assets, and Web3, with DLD’s real estate tokenization project seen as a crucial pillar. This initiative is part of the Dubai Real Estate Sector Strategy 2033, aimed at expanding real estate access for both domestic and international investors, while increasing transaction efficiency, reducing intermediary costs, and shortening processing times. With the activation of the secondary market, tokenized real estate in Dubai is expected to attract larger international capital flows, especially from investors seeking capital flexibility and high liquidity in the UAE real estate market.
The opening of secondary trading is expected to significantly improve the liquidity of real estate, traditionally a less liquid asset class. At the same time, it lays the groundwork for the formation of new financial products linked to tokenized real estate, including derivative structures and on-chain financial models in the future. Overall, this step helps solidify Dubai’s position as a global pioneer in RWA and tokenization.
With phase 2, Dubai demonstrates a step-by-step but systematic approach: from primary issuance, completing the legal framework, opening the secondary market, and aiming for scale expansion. If successfully implemented, Dubai’s real estate tokenization model is likely to become a reference standard for other countries researching and experimenting with bringing real estate onto the blockchain.
