The global market for tokenized real estate could rise to $4 trillion by 2035, according to a new report by the Deloitte Center for Financial Services.
Deloitte on Tokenized Real Estate Market
Currently valued at under $300 billion, the tokenized real estate market is expected to boom at a compound annual rate of 27% over the next decade, as per Deloitte. With tokenization, tokens signify ownership stakes which can be bought, sold, or traded, bringing real estate investment to global investors.
Deloitte’s report points out the technology’s potential to streamline complex financial structures. For e.g, a real estate fund launched on chain could feature smart contracts that automatically manages ownership transfers, capital distributions, and compliance procedures. One such instance is Kin Capital’s upcoming $100 million real estate debt fund, which will operate on the blockchain platform Chintai using trust-deed-based lending mechanisms.
The study picked out three core segments expected to dominate the market’s evolution: private real estate funds, securitized loan ownership, and projects involving undeveloped or under-construction land. Among these, tokenized debt securities are projected to lead the pack, with estimated growth reaching $2.39 trillion by 2035. Private real estate funds could contribute another $1 trillion, while land development assets may account for an additional $500 billion.
“Tokenization introduces a new level of customization for institutional investors,” Deloitte noted. “Unlike traditional investment vehicles, blockchain-based tokens allow for hyper-personalized portfolios aligned with specific investment theses.”
Deloitte also explored two primary ways for tokenizing existing real estate funds. One involves the “off-chain” approach, where loans are pooled by an originator, transferred to a special-purpose vehicle, and then used to issue blockchain-backed debt tokens. These tokens can be traded or used as collateral. The second model focuses on launching “on chain” funds based on decentralized agreements between borrowers and lenders, with real estate held in a third-party trust until conditions are met.
Kin Capital’s planned 2025 fund on Chintai is an example of this second approach. The $100 million initiative will be offered to qualified institutional investors with a minimum commitment of $50,000, which represents one of the first tokenized real estate funds built around trust deed lending.
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