The Dubai Land Department (DLD) has announced the launch of Phase II of the Real Estate Tokenisation Project, allowing resale activity in the secondary market from 20 February.

The phase marks the project’s move from a pilot stage to a more advanced operational stage within a regulated framework.

The pilot phase was launched in March under the “REES Real Estate Innovation Initiative,” in collaboration with the Virtual Assets Regulatory Authority (VARA) and strategic partners. It tested the regulatory, legislative, and technical frameworks for tokenising real estate on title deeds.

This made Dubai the first real estate registration authority in the region to adopt this model in a regulated environment.

Phase II allows the resale of around 7.8 million real estate tokens within a controlled pilot framework.

The phase aims to assess market efficiency, test operational readiness, enhance transparency and governance, and safeguard investors’ rights while ensuring transaction integrity.

DLD said the phase is being implemented gradually, with outcomes evaluated in coordination with relevant regulatory authorities.

“This approach ensures alignment with approved regulatory and legislative frameworks and strengthens confidence among local and international investors,”

it added.

The project supports the Dubai Real Estate Sector Strategy 2033. This strategy focuses on market balance, transparency, technology adoption, and an integrated investment experience.

It also aligns with the Dubai Urban Plan 2040, which emphasises quality of life, smart and sustainable urban development, and efficient land use. In addition, it supports the broader economic objectives of UAE Vision 2071.

DLD confirmed that work will continue with VARA and technical partners to develop standards for future phases.

The department will also study expanded participation and the onboarding of additional platforms. This will follow a gradual, evaluated approach subject to regulatory approval.

Featured image credit: Dubai Land Department