The blockchain technology and web3 trends allow the rapid growth of asset tokenization (fractionalization) and therefore the quick expansion of the tokenization of one of the most valuable assets: real estate.

Tokenization of real estate can turn almost any asset, especially into digital tokens as it allows both fractional ownership and proof-of-ownership.

Many tokenized real estate investment platforms are popping-up throughout the world, sometimes offering to invest as little as 1,000 euros or USD to own a portion of ownership rights in a residential or commercial property.

Real estate tokenization allows a property owner to raise funds to upgrade or renovate a property or simply get access to liquidity.

It also enables investors who are usually priced out of expensive commercial or institutional real estate to invest small amounts, receive passive income and after a certain period of time, hopefully resale their shares/tokens for a higher value (if the property increases in value over time).

Various regulations apply, both for the issuer and the investor, depending on where the property or the issuer are located.

Real estate is an illiquid asset.

Liquid assets are those that are easily and quickly convertible to cash.
Everyone from the average person to property owners and lenders have a need for liquid assets to meet their short-term financial obligations. Real estate tokenization allows to bring liquidity to real estate assets.

For further information about tokenized real estate, feel free to contact me.