Dubai’s property market is undergoing a significant transformation, fostering an environment of modernity and liquidity. The introduction of a new resale rule aims to invigorate the secondary real estate market, offering fresh opportunities for UAE residents and expatriates. This initiative, part of the Dubai Land Department’s (DLD) innovation agenda, will change how people invest and trade real estate in the emirate.

Understanding Dubai’s New Resale Rule

The recently announced resale rule is currently in Phase 2 of Dubai’s property tokenisation project and is set to be implemented on February 20, 2026. This new regulation will enable the resale of millions of digital property tokens linked to real estate title deeds. Under a controlled pilot framework, this initiative aims to create a regulated marketplace for tokenised assets in collaboration with the Virtual Assets Regulatory Authority (Vara). By enabling secondary trading of these tokens, investors can buy and sell fractional shares of real estate, akin to trading stocks, making property investments more accessible and manageable.

The Impact on Residents and Expats

This innovative rule is poised to bring increased liquidity to the market. Traditionally, selling a property in Dubai has been limited by a narrow pool of buyers and protracted transaction times. However, through tokenised resale, fractional owners can now trade parts of their real estate holdings more efficiently. This advancement is particularly advantageous for UAE residents and expatriates who may not be in a position to purchase an entire property outright. Tokenised resale eliminates significant entry barriers, enabling a broader range of investors to participate in the real estate landscape.

The tokenised approach enhances price transparency and governs transactions more precisely, safeguarding both buyers and sellers against potential fraud. This increased transparency aligns with other regulatory changes in Dubai, which aim to build confidence among buyers in the rapidly evolving market. For expatriates, these changes provide an opportunity to enter the property sector without the need for hefty upfront investments, as they can acquire smaller portions of real estate supported by legal title deeds.

Real Estate Trends in Dubai for 2026

As Dubai’s secondary market flourishes, the new resale rule complements existing trends. Reports from late 2025 indicated a surge in transactions within the secondary market, with significant investor interest in ready-to-move-in units. These properties have proven attractive for their potential for capital returns and rental income, benefiting both local and international buyers. The new rule not only formalises but expands the avenues available for trading real estate beyond traditional transactions.

Before engaging with this new resale rule, residents and expatriates should be aware that it is part of a pilot phase aimed at testing operational efficacy and regulatory compliance. Traditional property sales methods will still remain prevalent, ensuring that those who prefer conventional transactions retain solid options amid a thriving market.

Dubai’s Evolving Property Landscape

Dubai’s property market continually works to establish itself as a top-tier investment destination, supported by strategic reforms and innovative initiatives. Recent efforts include the First-Time Home Buyer Programme aimed at enhancing ownership rates among residents, alongside advances in digital transaction methods that simplify the buying process. Furthermore, restrictions on property listings and advertising contribute to increased trust and fairness within the marketplace, making it more inviting for prospective buyers.

By allowing the resale of tokenised property assets, Dubai is working towards a future where real estate liquidity mirrors that of contemporary digital financial markets. This transformation could attract new investor demographics who previously considered real estate too expensive or illiquid. Should the pilot program succeed, tokenised resale could eventually play a crucial role in Dubai’s property market, presenting significant opportunities for residents and expatriates alike.

As Dubai refines its regulatory frameworks, it is essential for property owners and investors to stay informed about ongoing updates from the Dubai Land Department and relevant authorities to navigate this evolving landscape effectively.