The tokenized real estate market has the potential to grow to $4 trillion by 2035, which could significantly change approaches to financing, ownership, and trading of real estate worldwide. This is supported by a recent report from the Deloitte Center for Financial Services.
This is reported by Finway
Experts believe that asset tokenization will create new economic opportunities worth trillions of dollars through the implementation of blockchain technologies and the formation of real-world tokenized assets (RWA), such as land, loans, and investment funds. The industry is expected to grow at an annual rate of 27% — from current figures that do not exceed $300 billion.
“Tokenization, once a niche experiment, may soon become the foundation of a new financial infrastructure in real estate. This technology could help generate trillions of dollars in economic activity for the real estate sector over the next decade,” the Deloitte report states.
According to the analysis, the primary growth of the market will be focused on:
- tokenized debt securities — up to $2.39 trillion;
- private real estate funds — around $1 trillion;
- development projects and undeveloped land parcels — up to $500 billion.
An example of innovation in this field is the Chintai platform from Kin Capital, which offers a tokenized debt fund of $100 million based on smart contracts with collateral that includes land rights. The report also mentions companies that are already using tokenization solutions, such as Redwood Trust, which has been implementing LiquidFi since 2021 for daily reporting on securitized mortgage assets. Figure Technologies, in particular, calculated a cost savings of $850 for every $100,000 in mortgage through tokenization, while T-RIZE Group signed a $300 million deal for the tokenization of a residential project with 960 apartments in Canada.
Online markets for tokenized real estate, such as World Property Exchange, Redswan, ABC Tokens, RETokens, Securitize, Tokenise, and others, are already providing or planning to launch tools for secondary trading, management, and reporting on tokenized assets. Despite the rapid growth, Deloitte experts point out a number of challenges facing the sector, including:
- regulatory uncertainty in various jurisdictions;
- issues of asset custody and digital security;
- lack of clear scenarios in the event of defaults;
- legal recognition of tokens as representatives of real ownership.
“Investors need to understand what will happen in the event of a default: will they be able to access the real asset, rather than just its digital representation,” Deloitte warned.
It is worth noting that at the end of March 2025, the Polymesh blockchain and the Canadian company Ocree Capital launched an RWA platform, with a residential complex valued at nearly $52 million as the real estate asset.