Dubai has officially entered the next stage of its pioneering real estate tokenization initiative. The Dubai Land Department (DLD) confirmed the commencement of Phase Two, set to activate on February 20, 2026. This pivotal phase is designed to unlock the secondary market, facilitating the resale of an estimated 7.8 million digitized real estate tokens.
The project, initially launched as a pilot program in collaboration with the Virtual Assets Regulatory Authority (VARA) and technical partners, has now matured beyond its testing grounds. The inaugural phase successfully validated the regulatory, legislative, and technical frameworks required for converting physical property title deeds into secure digital tokens.
Phase Two will operate within a controlled pilot environment with strategic objectives: evaluating market efficiency, testing operational capabilities, enhancing transparency and governance protocols, and rigorously safeguarding investor rights to ensure absolute transaction integrity. This measured approach underscores Dubai’s commitment to de-risking technological adoption in its vital property sector.
Early indicators from the pilot have been promising. As previously reported, investments were accessible to UAE residents starting from just AED 2,000. This low barrier to entry fueled significant initial traction, with one platform, Prypco Mint, processing deals exceeding AED 9 million within the first month alone.
This tokenization effort is part of a broader suite of initiatives by Dubai to stimulate and democratize property ownership. It complements programs like the First-Time Home Buyer (FTHB) Programme—a multi-stakeholder collaboration between DLD, the Dubai Economic Development Corporation (DEDC), banks, and developers—which has already enabled over 2,000 residents to purchase their first homes.
The DLD emphasized that its phased rollout strategy allows for careful assessment of practical outcomes and fosters close cooperation with other regulatory bodies. Ongoing work with VARA and technical partners continues to focus on developing robust standards for the project’s future expansion, cementing Dubai’s position as a global leader in tokenized real-world asset investment.