Dubai has launched the second phase of its real estate tokenization project in a new step aimed at boosting investment and integrating advanced technologies into its thriving property market.
The new phase, which begins on February 20, allows the trading and resale of real estate tokens within a regulated secondary market, following the success of a pilot phase launched last year in cooperation with regulatory authorities.
Tokenization is based on converting real estate assets into digital tokens registered on blockchain technology, enabling investors to own fractional shares of properties without purchasing them outright and facilitating buying and selling transactions.
The Dubai Land Department expects the real estate tokenization market to reach AED 60 billion by 2033, equivalent to 7% of the emirate’s total transactions. The move comes amid the strong performance of the property market, where the number of deals last year exceeded 270,000 transactions worth AED 917 billion, marking a 20% increase.
The department confirmed that the project is being implemented gradually to ensure regulatory compliance and build investor confidence, as part of a long-term plan to strengthen Dubai’s position as a hub for advanced real estate technologies.
