Investing in Dubai's Real Estate: Understanding the New Property Resale Rule
Dubai’s real estate market is taking a bold leap forward with the introduction of a resale rule designed to activate the secondary property market. Part of the Dubai Land Department’s (DLD) innovation agenda, this initiative aims to modernise transactions and boost liquidity, potentially changing how residents and expatriates invest in real estate. So if you are planning to buy or sell any property in Dubai, it is important to take note of these updated rules.
Phase 2 of Dubai’s property tokenisation project introduces a system that allows investors to trade digital property tokens linked to real estate title deeds. The pilot, set to start on February 20, 2026, encompasses roughly 7.8 million tokenised assets and is regulated in partnership with the Virtual Assets Regulatory Authority (Vara).
These tokens represent fractional ownership of properties, making real estate investment more accessible and divisible. Investors can now buy and sell portions of a property in a controlled digital marketplace, streamlining the process compared to traditional whole-property transactions.
Benefits For Residents And Expat Investors
Previously, selling a property in Dubai could be slow and limited by small buyer pools. The tokenised resale approach offers enhanced liquidity, enabling fractional owners to trade property shares quickly. This is particularly useful for UAE residents and expats seeking investment opportunities without committing to full ownership. Tokenisation reduces barriers to entry and allows for more diversified property portfolios, providing a flexible route into Dubai’s real estate sector.
Boosting Transparency And Market Confidence
By anchoring transactions on a tokenised ledger, Dubai aims to improve traceability, accuracy, and governance. Buyers and sellers benefit from greater protection against fraud and opaque dealings common in secondary markets. The initiative aligns with broader regulatory improvements, such as stricter listing rules and measures to curb fake property advertisements, strengthening investor confidence.
Expatriates gain a legal pathway to invest smaller sums in property backed by title deeds, opening doors to the market without needing large mortgages or full down payments. Dubai has already supported ownership accessibility through initiatives like the First-Time Home Buyer Programme, which enabled over 2,000 residents to acquire property within six months.
What Investors Should Keep In Mind
The resale rule is currently in a pilot phase, so participants should monitor updates from the DLD regarding eligibility, compliance, and transaction fees. Traditional property transactions will continue alongside tokenised options, providing multiple avenues for investment. Experts recommend including both conventional and tokenised property holdings within long-term financial plans.
(Disclaimer: This article is meant solely for informational and educational purposes. The views and opinions expressed are those of individual analysts or brokerage firms and do not reflect the stance of Times Now. Readers are advised to consult certified financial experts before making any investment decisions.)
