Dubai has launched the second phase of its real estate tokenisation project, continuing its push to attract more investment into the property sector amid a continued boom in the market.

The Dubai Land Department said on Monday that the second phase will allow resale activity in a regulated secondary market, starting on February 20.

The latest phase follows the pilot stage launched by the DLD in March last year in collaboration with the Virtual Assets Regulatory Authority and a number of strategic partners.

“The new phase marks a significant step in Dubai’s efforts to integrate advanced technologies into its property market, with the activation of resale transactions for about 7.8 million real estate tokens,” the land department said.

Real estate tokenisation enables investors to acquire a portion of a property without fully purchasing it. The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing.

During the pilot phase, the regulatory, legislative, and technical frameworks for real estate tokenisation on title deeds were tested, the land department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

The latest move comes as the emirate's property market continues to perform strongly on the back of government initiatives such as residency permits for retired and remote workers, the expansion of the 10-year golden visa programme and overall economic growth and diversification.

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The volume and value of real estate transactions in the emirate hit a record high last year, government data showed last month. The number of transactions reached more than 270,000, up 20 per cent on 2024, while the value of these deals also rose 20 per cent to Dh917 billion, the Dubai Media Office reported, quoting figures from the DLD.

The transition to the new phase of the tokenisation initiative is being implemented gradually, based on a practical evaluation of results and in close co-ordination with relevant regulators, the DLD said on Monday. The approach is intended to make sure it aligns with approved legal frameworks and build confidence among both local and international investors, the department added.

It said the tokenisation initiative is a long-term strategic project aimed at positioning the emirate as a testing ground for advanced real estate technologies.

The tokenisation project supports the objectives of the Dubai Real Estate Sector Strategy 2033, which aims to enhance market balance, increase transparency and enable greater use of technology across the sector, DLD said.