The global real estate market—long considered one of the most illiquid and traditional asset classes—is now standing at the edge of a transformation that could redefine how property ownership works. According to a new outlook from Deloitte, tokenised real estate could expand from under US$0.3 trillion in 2024 to nearly US$4 trillion by 2035, fueled by blockchain infrastructure, fractional ownership models, and the rapid maturation of digital-asset rails.
This isn’t just a speculative forecast. It reflects a structural shift already underway across global finance.
Why Real Estate Is Becoming a Prime Candidate for Tokenisation
Traditionally, real estate transactions have been slow, capital-intensive, and often constrained by geographic barriers. Tokenisation rewrites this by converting real-world property rights into blockchain-based tokens that can be bought, sold, and transferred with unprecedented efficiency.
Several core drivers are powering this megatrend:
1. Fractional Ownership Unlocks Global Capital
By dividing property into thousands of fractional tokens, investors no longer need large sums to enter high-value markets like commercial buildings or luxury developments. A global investor base can participate in assets previously accessible only to major funds.
2. Improved Liquidity Through Digital Asset Rails
Liquidity has always been the biggest challenge in real estate. Blockchain enables near-instant settlement, 24/7 trading, and the ability to collateralize property tokens in DeFi-like environments. For the first time, real estate begins to behave like a liquid financial product.
3. Transparent, Immutable Records
Blockchain’s auditability reduces reliance on intermediaries, cuts administrative costs, and decreases fraud risk. This is particularly attractive in cross-border markets where trust and documentation standards vary.
4. Institutional Adoption Accelerates
Major asset managers and financial institutions are no longer experimenting—they are building. Real estate tokenisation platforms, compliant digital exchanges, and regulatory frameworks have matured dramatically since 2021. Deloitte’s forecast implies that institutional confidence is now entering a second phase of growth.
The Road to a US$4 Trillion Market
The jump from US$0.3 trillion to US$4 trillion in just over a decade is a massive leap, but it mirrors the trajectory of other groundbreaking technologies. Much like the early days of ETFs or online banking, the adoption curve tends to be slow initially—then exponential.
Deloitte Italia notes that tokenisation will likely accelerate fastest in:
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Commercial real estate
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Logistics and industrial properties
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Hotel and mixed-use developments
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Green infrastructure and sustainability-linked projects
These sectors benefit most from fractional access and global investor participation.
Challenges Ahead — And Why They Won’t Slow the Trend
Real estate tokenisation faces hurdles: regulatory fragmentation, lack of standardization, and conservative asset managers. Yet the direction of travel is unmistakable.
As more jurisdictions adopt digital-asset legislation and institutions embrace tokenised funds, the friction will diminish. The economic incentives are simply too large for the industry to ignore.
A New Era for Property Investment
By 2035, buying a fraction of a skyscraper or trading tokenised real estate on a mobile phone may be as normal as buying a stock today. The shift promises to democratize access, increase liquidity, and reshape global capital flows.
If Deloitte’s forecast holds true, we are witnessing the early days of a US$4 trillion digital real-estate revolution—one that will permanently change how the world owns and invests in property.
