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Dubai will launch a regulated secondary market for tokenized real estate on February 20, enabling investors to resell approximately 7.8 million property-backed tokens for the first time under government supervision.
The Dubai Land Department said the pilot program marks Phase II of the emirate’s real estate tokenization project and will test how digital property assets perform once liquidity, price discovery, and investor exits are introduced — addressing a key criticism that has limited adoption of tokenized real estate globally.
Secondary markets are critical infrastructure for any asset class. Without them, investors are effectively locked into long holding periods. By enabling resale, Dubai is addressing one of the most common criticisms of tokenized real estate: illiquidity.
“This phase is a preparatory one,” DLD said in its announcement, noting that real-world data from live trading will inform future regulatory, legislative, and technical decisions. The department emphasized that this approach is intended to strengthen confidence among both local and international investors.
The initiative builds directly on Phase I of the project, which focused on issuing tokenized deeds and facilitating initial sales through PRYPCO Mint, the region’s first licensed tokenized real estate platform.
Phase I of Dubai’s Real Estate Tokenization Project began with the launch of the Real Estate Innovation Initiative in partnership with Dubai’s Virtual Assets Regulatory Authority (VARA) and several strategic partners. During this stage, regulators tested the legal and technical frameworks required to tokenize title deeds while maintaining alignment with existing property laws.
In May 2025, PRYPCO Mint officially launched in partnership with the Dubai Land Department and VARA, with blockchain infrastructure powered by Ctrl Alt. That milestone saw the issuance of the region’s first property token ownership certificate — a key moment for tokenized real estate in the Middle East.
By July 2025, PRYPCO Mint had already demonstrated strong investor demand. Its Park Ridge Tower C offering, located in Dubai Hills and valued at $653,000, attracted 326 investors from 51 nationalities. The average investment size was about $2,000, highlighting how tokenized real estate lowers.
DLD has made clear that its ambitions extend far beyond pilot programs. In earlier statements, the department projected that tokenized real estate could represent up to 7% of Dubai’s total property market by 2033, equivalent to roughly $16 billion in value.
That scale would place Dubai among the world’s most advanced jurisdictions for real-world asset tokenization, particularly in property markets traditionally dominated by high capital requirements and slow transaction processes.
By introducing a secondary market now, Dubai is laying the groundwork for that future. Price discovery, investor exits, and market depth are all essential components if tokenized real estate is to evolve from innovation narrative to mainstream investment channel.
A key differentiator in Dubai’s approach is regulatory coordination. DLD continues to work closely with VARA to ensure that tokenized real estate platforms operate within a clear compliance framework.
The department confirmed that additional platforms will be approved over time, expanding competition and innovation within the ecosystem. One such platform is UAE-based Stake, a digital real estate investment firm that offers fractional property ownership and real estate funds. Stake has received in-principle approval from VARA under the name Stake RWA.
The inclusion of multiple platforms suggests Dubai is aiming to avoid single-provider concentration while still maintaining oversight — a balance many jurisdictions struggle to achieve when experimenting with tokenized real estate.
Dubai’s secondary market launch sends a broader signal to the global real estate and crypto industries. While many countries have explored tokenized real estate in theory, few have moved as quickly to implement regulated, end-to-end systems covering issuance, custody, and now secondary trading.
By anchoring the initiative within existing land registry systems, Dubai is addressing one of the sector’s biggest concerns: legal enforceability. Token holders are not just buying digital representations, but interests directly tied to registered property assets.
As institutional interest in real-world asset tokenization continues to grow, Dubai’s model could become a reference point for other governments considering how to bring tokenized real estate into regulated financial markets.
For now, the secondary market remains a pilot. Trading volumes, investor behavior, and system resilience will all be closely monitored. DLD has emphasized that decisions about scaling the program will be driven by real operational data rather than theoretical assumptions.
Still, the direction of travel is clear. With government backing, regulatory clarity, and early evidence of investor demand, tokenized real estate in Dubai is moving from experimentation to execution.
As secondary trading opens, investors will get their first real look at how property tokens behave once liquidity enters the equation — a milestone that could define the next chapter of tokenized real estate not just in Dubai, but globally.
