Dubai's Real Estate Revolution: 7.8M Tokens On Sale

Dubai's Real Estate Market Enters a New Era: 7.8 Million Tokens Go on Sale on the Secondary Market Starting February 20

Dubai has once again captured the world's attention as it leads the digital transformation of the real estate market. The Dubai Land Department (DLD) will launch the second phase of its real estate tokenization project on February 20, aiming to activate sales on the secondary market. This step is a milestone not just in the region but globally, as it allows the resale of over 7.8 million real estate-related digital tokens within a regulated, pilot framework.

What is real estate tokenization, and why is it important?

Real estate tokenization is an innovative solution that allows traditional real estate assets to be divided into smaller units, or tokens, in digital form using blockchain technology. These tokens represent partial ownership of the given property, allowing small investors to acquire stakes in the city's increasingly valuable real estate market.

Dubai was among the first in the United Arab Emirates to launch such a project, closely collaborating with the Virtual Assets Regulatory Authority (Vara) and technology partners such as Prypco Mint.

Experiences from the first phase of the project

The first phase of the tokenization project already launched last year, where the DLD tested the legal and technical conditions for issuing digital tokens linked to property titles in a closed, pilot environment. The aim was to establish a framework where transactions are transparent, secure, and meet investors' expectations. In the first month, transactions worth more than 9 million dirhams were conducted through one of the project’s key platforms, Prypco Mint.

Activating the secondary market – focus on resales

During the second phase starting on February 20, it's not just about the primary market anymore; token resales will be possible in a controlled, pilot secondary market environment. This step is particularly important as it allows the assessment of market efficiency, transaction mechanisms, and the protection of investor interests. The minimum entry amount remains low—allowing stakes to be purchased from as little as 2,000 dirhams—thus encouraging small investors.

First-time homebuyers program: a successful background initiative

It is worth highlighting that Dubai is supporting property ownership through other means as well. In the “First-Time Home Buyer” (FTHB) program launched in July 2025, the DLD, the Dubai Economic Development Corporation (DEDC), financial institutions, and property developers collectively supported residents buying their first property. During the first phase of this program, more than 2,000 people purchased their own homes, a significant result that also demonstrates market openness on the residential side.

Regulation, partnership, and transparency

The DLD has made it clear that the gradual implementation of the project is no accident. Developing a comprehensive regulatory and technological background is crucial for the innovation to be not just impressive but also sustainable. Collaboration with regulatory authorities, especially with Vara, is of paramount importance, and preparations for the further phases are already underway.

The goal is clear: to create a digital real estate market that is simultaneously secure, dynamic, and accessible to a broader investor base.

What does this mean for the future?

Dubai's steps clearly show that the future of the real estate market lies in digital solutions. Real estate tokenization not only signifies simplification or technological innovation but fundamentally transforms the way ownership and investment are conducted. The low entry threshold and the possibility of resales democratize access to real estate, which was previously only accessible to players with larger capital.

This system could be particularly beneficial for those looking to save long-term, establish passive income, or partake in Dubai's development without purchasing entire property units.

Summary

The second phase of Dubai's tokenization project is not only a technological novelty but revolutionary in its economic and social impact as well. Allowing the secondary market trading of more than 7.8 million tokens opens new dimensions in the real estate market: focus is placed simultaneously on flexibility, transparency, and the protection of investor rights.

While the world is still becoming acquainted with the digitalization of real estate, Dubai is already building a functioning, multi-step system that could serve as a significant example for other major cities. In the coming years, more investors and residents are expected to turn to tokenized real estate, and this trend may fundamentally reshape the city's economic ecosystem.