A new report from Deloitte forecasts that the global tokenized real estate market will expand from $300 billion in 2024 to $4 trillion by 2035. This growth is expected to follow a 27% compound annual growth rate (CAGR), fueled by blockchain technology that enables fractional ownership and improves operational efficiency.
According to the report, major growth will come from three areas: tokenized private real estate funds, projected to reach $1 trillion; tokenized loans and securitizations, expected to hit $2.39 trillion; and tokenized undeveloped land or under-construction projects, estimated at $50 billion. Initiatives like Kin Capital’s $100 million real estate debt fund, launching on the Chintai blockchain in 2025, are expected to drive this trend forward.
Tokenization allows investors to create customized portfolios and achieve significant cost savings. For example, Liquidfi has demonstrated that mortgage-backed securities reporting can be completed in just 30 minutes through tokenization.
However, Deloitte notes that several challenges must be overcome to achieve widespread adoption. These include regulatory compliance issues, the need for blockchain interoperability, and cybersecurity risks.
Related Topics:
What Are Broker Fees for Real Estate
