The Dubai real estate market has entered a new era. On February 20, 2026, the Dubai Land Department officially activated Phase 2 of its real estate tokenization initiative, making it possible for investors to buy and sell property-backed tokens in a regulated secondary market. This is not a theoretical pilot or a whitepaper concept. It is a live, functioning marketplace where 7.8 million tokens linked to ten verified Dubai properties are actively tradable. For investors across the US, UK, UAE, Canada, and India who have been watching the intersection of blockchain and property, this is the moment that transforms speculation into reality.

With over eight years of experience tracking and advising on Dubai real estate trends, we can confidently say this is among the most significant structural shifts the market has experienced. The combination of the XRP Ledger, Ripple Custody, and direct integration with the DLD registry creates a transparent, secure, and legally recognized framework for fractional property ownership. This blog breaks down everything you need to know, from the mechanics to the risks, the confirmed facts to the projections, and what this means for investors worldwide.

Real estate tokenization converts physical property ownership into digital tokens on a blockchain. Each token represents a verified fraction of a real asset. Think of it as splitting a high-value Dubai apartment into thousands of tiny digital shares, where every share is legally recognized, securely stored, and now tradable. For everyday investors in the US, UK, or India, the barrier to entering the Dubai real estate market was traditionally enormous. You needed hundreds of thousands of dollars, legal intermediaries, physical presence for documentation, and weeks of processing time.

Tokenization changes that equation entirely. With a minimum investment of AED 2,000 (roughly $545 USD), you can hold a verified stake in a premium Dubai property. The ownership is not symbolic or indirect like a REIT. Each token is directly linked to a title deed recorded by the Dubai Land Department. Smart contracts handle compliance, income distribution, and transfer logistics. Settlement that used to take weeks now happens in seconds on the XRP Ledger. For Canadian pension holders or UK-based portfolio managers exploring diversification, this opens a direct channel into one of the world’s most dynamic property markets without the traditional friction.^[1]

On February 20, 2026, the Dubai Land Department in partnership with Ctrl Alt officially launched secondary market trading for tokenized Dubai real estate. This was Phase 2 of a multi-stage plan that began with a pilot program tokenizing ten properties valued at over $5 million. The 7.8 million tokens issued during the pilot phase became eligible for resale within a controlled, regulated trading environment. Transactions are executed through platforms like PRYPCO Mint, recorded on the XRP Ledger, and secured by Ripple Custody.^[2]

What makes this different from other blockchain property experiments globally is the regulatory depth. VARA, the Central Bank of UAE, and the Dubai Future Foundation all participate in oversight. Every trade syncs directly with the DLD’s official property registry, eliminating discrepancies between blockchain records and legal ownership. Robert Farquhar, CEO of Ctrl Alt ^[3], stated that tokenization achieves its full potential only when assets can move freely after issuance, and the secondary market delivers exactly that. Reece Merrick, Ripple’s Managing Director for Middle East and Africa, called this a massive step forward for real-world asset adoption in Dubai real estate.

The process began when the Dubai Land Department identified ten properties suitable for tokenization. These assets were legally structured, with title deeds prepared for digital conversion. Ctrl Alt, the infrastructure partner, minted ownership tokens on the XRP Ledger. Each token was mapped directly to a corresponding title deed in the DLD system. PRYPCO Mint, a VARA-regulated broker-dealer, facilitated the initial distribution, allowing approved investors to purchase fractional stakes. Zand Bank, the region’s first fully digital bank, provided banking infrastructure for the transactions.

The selection of the XRP Ledger was strategic. Known for high transaction speed and low fees, it provides the throughput necessary for a Dubai real estate market where settlement efficiency matters. Ripple Custody adds institutional-grade security, ensuring that digital assets are protected with the same rigor applied to traditional financial instruments. The entire pipeline, from token creation to investor onboarding to compliance verification, operates within the regulatory framework established by VARA. For investors from the UK, Canada, or the US evaluating Dubai real estate opportunities, this level of infrastructure maturity is critical. It signals that this is not an unregulated experiment but a government-backed initiative with institutional support.

DLD confirmed total 10 properties, but detailed public breakdown for all 10 units has not been officially released.

Total tokens issued: 7.8 million tokens

Dubai’s vision extends far beyond a handful of tokenized properties. The Real Estate Sector Strategy 2033 lays out an ambitious roadmap where tokenized assets represent 7% of the city’s total property market, valued at approximately $16 billion. This initiative was launched under the Dubai real estate Evolution Space Initiative known as REES, positioning the Dubai Land Department as the first real estate registration entity in the Middle East to adopt blockchain-based tokenization. The plan connects directly to the Dubai Economic Agenda D33, which drives digital transformation across every sector.

For investors in Canada, the US, and the UK, this is not just about buying into a single property. It is about positioning within an ecosystem that a sovereign government is actively building with multi-billion dollar targets. The inclusion of VARA, the Central Bank, and the Dubai Future Foundation signals regulatory maturity that most blockchain-based property initiatives around the world currently lack. Dubai real estate has always attracted global capital. Tokenization now makes that capital flow faster, cheaper, and more accessible to a wider range of investors, from institutional funds to retail participants in India exploring their first international property exposure.

Real estate is the largest asset class on the planet, worth an estimated $326 trillion globally. Yet it remains one of the most illiquid. Selling a property in New York, London, or Mumbai typically takes months of paperwork, negotiations, inspections, and legal processes. Even in highly active markets like Dubai, completing a property transaction from listing to settlement can stretch across weeks. This illiquidity locks up enormous capital, preventing investors from rebalancing portfolios or responding quickly to market changes.

For investors holding assets across multiple geographies, like a UK-based fund with positions in Canadian commercial property and Dubai residential towers, this friction is costly. Tokenization addresses this by converting ownership into digital tokens that can be transferred in seconds on a blockchain. The Dubai real estate tokenization initiative specifically tackles this problem by creating a regulated secondary market where positions can be bought and sold without the traditional delays. An EY report noted that thin secondary trading can limit liquidity in tokenized markets, but Dubai’s approach of building regulatory infrastructure first and then opening trading is designed to avoid exactly that pitfall.^[4]

While tokenized real estate is still a small fraction of the global property market, the growth trajectory is significant. Deloitte projects that $4 trillion in real estate will be tokenized by 2035, compounding at roughly 27% annually. Dubai is leading the charge in the Middle East, but other jurisdictions are also making moves. The United States has seen platforms like RealT and Lofty tokenize residential properties, though without the government registry integration that Dubai offers. The UK’s Financial Conduct Authority has been exploring sandbox programs for tokenized securities, while India’s SEBI has signaled interest in blockchain-based asset classes.

Deloitte projects that the tokenized Dubai real estate market could reach approximately 14.68 trillion AED or ₹332 trillion by 2035, reflecting rapid institutional adoption globally.

Every innovation carries risk, and Dubai real estate tokenization is no exception. Despite the robust regulatory framework, investors must approach with realistic expectations. The secondary market is still in a controlled environment, which means liquidity is not yet comparable to a major stock exchange. Thin trading volumes can lead to pricing gaps, where the value of your tokens may not accurately reflect the underlying property’s market worth. EY has highlighted this liquidity risk as a persistent bottleneck across tokenized asset markets globally.

Phase 1 officially began in May 2025 under Dubai real estate Evolution Space initiative. This was the testing stage where Dubai wanted to prove that property tokenization could work in a safe and regulated way.

During this phase, ten Dubai properties were converted into digital tokens. The total value of these properties was about 18.5 million AED, which is roughly 5 million US dollars. These tokens were created on the XRP Ledger, sold through the PRYPCO Mint platform, and securely stored using Ripple’s custody system.

The Dubai Land Department supervised the property registration side. VARA created the regulatory structure for digital assets. The Central Bank of UAE monitored the financial transactions. Every step was controlled to make sure the system worked legally and smoothly.

Only investors who had a valid UAE Emirates ID were allowed to participate. This rule was added to keep the pilot limited and manageable while testing the full process from property structuring to token sale.

Phase 1 was not just about selling property tokens. It was about testing technology, checking compliance, verifying legal ownership links, and building trust in the system. Once the infrastructure proved stable, Dubai moved to Phase 2, where investors could finally resell their tokens in a regulated secondary market.

Phase 2 changed that completely. The 7.8 million tokens created during the pilot phase can now be bought and sold on a regulated secondary market. Investors can list their tokens for sale, and once a buyer agrees, the transaction is completed digitally.