Dubai has taken a significant step forward in its blockchain ambitions with the launch of Phase II of its Real Estate Tokenisation Project. The Dubai Land Department (DLD) has officially enabled a secondary market, allowing investors to trade fractional ownership of properties in a reulated, on-chain environment. This move aims to solve one of the oldest challenges in property investment: illiquidity.
The initiative, a collaboration between the DLD and prop-tech firm Prypco, now allows for the trading of approximately 7.8 million real estate tokens, representing over AED 18.5 million ($5 million) in property value from the project’s pilot phase. The trading system and tokenisation infrastructure are powered by UK-based Ctrl Alt.
Solving Real Estate’s Liquidity Challenge
A core limitation of real estate as an asset class has historically been the difficulty and time required to buy or sell. The new secondary market directly addresses this by allowing investors to exit their positions efficiently when a verified buyer is available.
“Being able to acquire a property is one thing, but the ability to trade it quickly and securely is what creates efficiency, accessibility, and real flexibility,” said Robert Farquhar, CEO, MENA at Ctrl Alt. “In Dubai, this capability is now available at scale. Investors are no longer locked in after purchase.”
This creates a more dynamic investment ecosystem where participants can enter or exit positions with greater ease, using government-recognised tokens that represent legal ownership.
A Government-Backed, Regulated Framework
Investor confidence is central to the project’s success. By working closely with Dubai’s Virtual Assets Regulatory Authority (VARA), the initiative operates under a clear legal framework. Ownership is not just recorded on the blockchain but is also directly reflected in the official DLD land registry, providing robust legal enforceability.
“When a token is purchased, the investor’s ownership is also reflected at the land registry; [legal] enforceability comes from the government framework, not the token itself,” Farquhar explained.
All transactions are executed on the XRP Ledger and secured through Ripple Custody, operating within a closed, regulated ecosystem. This ensures only onboarded and verified investors can participate, allowing for tightly monitored custody and control.
How It Works On-Chain
To facilitate compliant secondary trading, the project utilises a two-token structure. An issuer token represents the legal ownership of the property, while a secondary Asset-Referenced Virtual Asset (ARVA) management token governs how the asset is managed and traded.
This dual-token system, combined with direct integration into the DLD’s systems, creates a seamless connection between on-chain transactions and official government records.
“What used to take months of coordination now happens in minutes,” Farquhar noted. “An investor can sell a title deed token and complete a legal transfer in a single, regulated transaction. That fundamentally changes how people interact with real estate.”
Mitigating Volatility and Ensuring Exit Paths
To prevent the kind of volatility often seen in equity markets, the platform has embedded safeguards. A 20% delta against DLD smart valuations provides a buffer against wild price fluctuations, while sellers can list tokens within a 15% variance of the valuation, further promoting price stability.
To address the risk of assets becoming stranded during market downturns, token holders have a crucial exit mechanism: they hold voting rights to divest the entire property. This ensures a pathway to liquidity is always available, even if the secondary market for individual tokens slows down.
Future Roadmap and Institutional Interest
While the current phase focuses on retail investors in the UAE, with minimum investments starting at AED 2,000 ($545), the project’s roadmap includes expansion. Future phases are planned to extend tokenisation to off-plan properties, whole tokenised properties, and commercial assets.
This expansion is expected to attract institutional investors, such as sovereign funds and global asset managers, who can leverage the same benefits of transactional efficiency and secondary market access at scale. Dubai authorities estimate that tokenised assets could represent 7% of the emirate’s real estate market by 2033, valued at approximately AED 60 billion ($16 billion).
About The Real Estate Tokenisation Project
The Real Estate Tokenisation Project is a pioneering government-led initiative by the Dubai Land Department (DLD). It allows investors to purchase fractional ownership of completed residential properties through blockchain-based tokens. In partnership with technology providers like Prypco and Ctrl Alt, the project integrates on-chain transactions directly with Dubai’s official land registry, ensuring legally recognised ownership and providing a regulated secondary market for trading these assets.
Source: Zawya
