Real Estate Tokenization Market Size, Share, By Component, Token type, Type, End-User, and Region - Trends, Analysis, and Forecast till 2035

• By 2035, the real estate tokenization market is expected to reach USD 19.3 billion.
• In 2024, the target market was worth USD 2.6 billion.
• The market is expanding at a CAGR of 20.2%.

Real estate tokenization refers to the process of converting the ownership of physical real estate assets into digital tokens on a blockchain. The target market growth is fueled by increasing demand for digital assets, the rising adoption of blockchain technology and the need for more inclusive investment opportunities.  

For instance, in December 2024, Blaqclouds announced the launch of its new wholly-owned blockchain-based real estate division, BLAQClouds Property Group, and its website www.bpginc.io on December 19, 2024. The subsidiary will focus on property tokenization, fractional ownership, and decentralized property management. The initiative leverages the ZEUS Blockchain to transform physical properties into digital tokens through NFTs, enabling transparent transactions and fractional ownership opportunities.

Key Takeaways:

• North America held the largest share of the market in 2024 due to a strong presence of major players, advanced technological infrastructure, and a favorable regulatory environment that encourages innovation in tokenization across the region.
• Asia Pacific is expected to be the fastest-growing market during the forecast period as it is driven by increasing demand for accessible investment opportunities and advancements in blockchain technology in the region.
• By component, the services segment is expected to account for the largest share of the real estate tokenization market in the upcoming years as it encompass a range of offerings designed to facilitate the conversion of physical properties into digital tokens, enhancing accessibility, liquidity, and efficiency in real estate investments.

Key Drivers of Target Market:

Improved liquidity is expected to Boost Market Growth

Tokenization enables fractional ownership of real estate assets, which makes it easier for investors to purchase and sell shares. This improved liquidity appeals to a broader spectrum of investors, including individuals who might not have been able to finance entire homes.   

• For instance, in October 2024, Chintai, a leading Layer-1 blockchain designed for institutional-grade tokenization of real-world assets (RWAs), has announced the launch of Kin Capital’s USD 100 million real estate debt fund. This innovative fund aims to integrate traditional finance with blockchain technology, offering accredited investors a new approach to real estate investment. The fund opens with an initial USD 5 million tranche and marks a significant milestone in the evolution of real estate investing.

Cost Efficiency is Expected to Speeding up Market Expansion

Tokenization uses blockchain technology to lower transaction costs connected with real estate investments such as intermediary fees and lengthy registration processes. 

• For Instance, in November 2024, Rexas Finance (RXS) is gaining ground within the crypto industry, especially with its fresh strategy of tokenizing real estate. Rexas Finance is currently selling at USD 0.06 in its fourth presale stage. The essence and relevance of the token is it endeavors to incorporate the blockchain in property transaction processes thereby creating an easy, clear, and efficient way of investing in real estate.

Restraints:

Technological limitations Restrict Target Market Growth

Implementing blockchain technology demands extensive technical expertise and infrastructure, which can be expensive for smaller businesses or individuals unfamiliar with digital technology.

• Counterbalance Statements: As more industries adopt blockchain solutions, the technological barriers associated with real estate tokenization are diminishing. Increased familiarity and expertise within the market can lead to more streamlined implementations and innovations.

Opportunities & Market Trends:

Global Investment Access Can Create Better Growth Opportunities

• Through tokenization, the investors can access real estate markets globally without the complexities of traditional cross border transactions. This global reach enable diversification of investment portfolios and mitigates risks associated with local market fluctuations.
• For instance, in August 2024, Blocksquare, a pioneer in real estate tokenization, has partnered with blockchain hotel investment platform Pieme to launch a new Marketplace Pool funding round. This initiative aims to democratize hotel investments using blockchain technology and decentralized finance (DeFi) principles.

The Real Estate Tokenization market is classified into component, token type, type, end-user, and region.

Component:

Real estate tokenization market by component is categorized into software/platforms and services. The services segment is expected to dominate over the forecast period as offer integration of blockchain technology into existing systems, ensuring that transactions are secure, transparent, and efficient. This integration enhances the integrity of tokenized assets and provides a seamless user experience for investors.

Token type:

By token type, the real estate tokenization market is segmented into equity tokens, utility tokens, asset-backed tokens, security tokens, and others. The equity tokens segment dominates the focused market share as it represents ownership stakes in real estate assets allowing investors to participate in the real estate market without the need for substantial capital investment.

• For instance, in July 2024, MOCHAX, a leading digital asset management firm, launched a Real World Asset (RWA) tokenization project in collaboration with Tokeny, the pioneering onchain finance operating system for tokenized securities. This initiative tokenizes the equity of the firm, bringing new levels of liquidity, accessibility, and efficiency to the equity market. According to Pitchbook, private equity has historically outperformed public markets in return comparisons over periods ranging from 5 to 20 years. However, the traditional equity market is inaccessible and illiquid as firms generally require a large minimum investment, high transaction costs, and a long lock-up period.

Type:

Real estate tokenization market by type is classified into commercial real estate (CRE), residential real estate, industrial real estate, land & acreages real estate, and others. The residential real estate segment is expected to dominate over the forecast period as the residential real estate tokenization is transforming the way individuals invest in and manage residential properties. This innovative approach leverages blockchain technology to create digital tokens that represent ownership shares in residential real estate assets, offering numerous benefits and opportunities.

• For instance, in May 2024, HSBC sees a strong start for India's residential real estate market in 2025, with major launches expected in the first quarter, which are expected to lay the foundation for a robust pre-sales base.

End-User:

By end-user, the market is segmented into property owners, investors, real estate developers, property management companies, and others. The commercial segment dominates the holds the largest real estate tokenization market share due to the increased liquidity as tokenized assets can be easily bought, sold or also traded on secondary markets. Further, this liquidity is particularly advantageous in a market where traditional transactions can be slow and cumbersome

Region:

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: This region is expected to dominate the target market share as the U.S. is particularly prominent, with a significant number of tokenization initiatives and a growing interest in blockchain technology for real estate investments. 

• For instance, in July 2023, ELYFI, a DeFi protocol that connects real and virtual assets, announced that it has launched a new US real estate investment product. The product generates returns by lending virtual currency using bonds of US real estate as collateral. It is possible to buy real estate in fragments. It has advantages such as a high rate of return of 12%, zero platform usage fee, small investment possibility, easy US real estate investment method, and recoverable investment through open markets such as Opensea.

Asia Pacific: This is the largest and fastest-growing region in target market as it merges traditional property ownership with innovative digital solutions. Countries, such as Japan and South Korea are at the vanguard, with government support, promoting the use of tokenized real estate solutions.

Real Estate Tokenization Market Report Scope:

Segmentation:

By Component:

• Software/Platforms
• Services

By Token type:

• Equity Tokens
• Utility Tokens
• Asset-Backed Tokens
• Security Tokens
• Others 

By Type:

• Commercial Real Estate (CRE)
• Residential Real Estate
• Industrial Real Estate
• Land & Acreages Real Estate
• Others

By End User:

• Property Owners
• Investors
• Real Estate Developers
• Property Management Companies
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the real estate tokenization market include Antier Solutions, SolidBlock, Aetsoft Inc., and others. The focused market is competitive with established platforms and emerging competitors, which offers various features to meet the needs of different investors. As the industry evolves, these companies are anticipated to boost innovation and increase access to real estate investment opportunities using tokenization.

For instance, in November 2024, Reltime, a leader in Web3 and blockchain technology, has joined forces with Norwegian Holding Limited’s ISON project to launch a €150 million real estate tokenization initiative. This venture will allow investors worldwide to access high-value Norwegian real estate by purchasing digital tokens, starting with the Oslofjord Project.

List of Key Players in the Market:

• Antiersolutions
• SolidBlock
• Aetsoft Inc.
• Securitize LLC
• Tokeny
• Blocksquare
• Slice Fintech Limited
• BlockchainX
• DigiShares
• Smart Real Estate
• Polymath Research Inc.
• Stobox Companies Group
• REALTOKEN
• BRICKKEN SOLUTIONS S.L.
• RedSwan CRE Marketplace

• In November 2024, the Bruhat Bengaluru Mahanagara Palike (BBMP) aimed to launch a new portal for property owners who have never obtained a khata in the city to apply for fresh e-khatas. The civic body estimates that there are around five lakh such properties without a khata. The BBMP recently launched a website, www.bbmpeaasthi.karnataka.gov.in, to digitally procure e-khata for properties that already have a khata.
• In November 2024, BNB Chain introduced its new tokenization tool, providing a streamlined way for small businesses and entrepreneurs to tokenize real-world assets, such as real estate and company shares on the blockchain. The tool includes compliance measures and security-focused features to support the tokenization of real-world assets (RWAs) such as real estate, art, and business equity.
• In October 2024, Axelar, a leader in blockchain interoperability, has launched the Mobius Development Stack (MDS) on mainnet, following on-chain governance approval. MDS is the first-and-only holistic interoperability platform. MDS enable customizable, self-service integration with any on-chain or off-chain system, creating a new design space for decentralized applications. The list of upcoming layer 1 interoperability launches includes Solana, Stellar, Sui and XRP Ledger powered by the newly launched Interchain Amplifier.
• In July 2024, Propchain has announced a strategic advancement in the tokenized real estate sector with the launch of Propchain DAO, marking the first Real World Assets (RWA) project to launch a DAO in the tokenized real estate sector. This initiative sets a new benchmark for transparency, inclusivity, and community-driven governance not only for Propchain, but within the rapidly growing RWA industry as well.

Analyst View:

Real estate tokenization market represents a transformative shift in the property investment landscape, which leverages blockchain technology to unlock new possibilities in asset ownership, liquidity, and transparency. Furthermore, it is expected that in the future years, tokenization will bring new levels of accessibility and democratization to the historically capital-intensive real estate sector, letting even small-scale investors to participate in high-value property markets.

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