Real Estate Tokenization Could Hit $4 Trillion by 2035, Says Deloitte
Real estate tokenization is now barreling toward the mainstream. And if a new report from Deloitte is right, it could turn into a $4 trillion market within the next decade.
In a Thursday report by the Deloitte Center for Financial Services, analysts said that tokenizing real estate — turning physical property into tradable digital tokens on the blockchain — could revolutionize how real estate is bought, sold, and financed.
“The market of tokenized real estate could reach $4 trillion by 2035,” the firm wrote, forecasting a massive 27% compound annual growth rate from today’s size of under $300 billion.
Why Tokenize Real Estate?
At its core, tokenization is about making ownership simpler and more accessible.
Instead of piles of paperwork, tokenized real estate lets ownership and transactions happen automatically through blockchain. Settlements happen faster. Costs drop. And more investors — not just the ultra-wealthy — can get a slice of real estate deals.
In Deloitte’s words, tokenization “offers operational efficiencies, cheaper and faster settlements and broader investor access.”
Think about it like buying shares in a company — except now you can buy a fraction of an apartment building, a shopping mall, or a development project.
And it’s not just about buying and selling finished properties.
Deloitte predicts tokenization will reshape three major parts of real estate. Private real estate funds in properties could be tokenized, letting investors own fractions of them easily.
Mortgages and other property loans could be bundled and traded on-chain like stocks or bonds. Even plots of undeveloped land could be tokenized and sold piece-by-piece to investors.
Among these, Deloitte believes tokenized debt securities — think mortgages and real estate loans — will dominate, making up around $2.39 trillion of the total $4 trillion tokenized market by 2035. Private funds could account for about $1 trillion, while tokenized land assets could make up another $500 billion.
What It Could Look Like
Instead of needing millions to invest in a luxury condo project, you could invest $500 by buying a token tied to it. You could sell that token later, or even trade it on a marketplace — instantly, 24/7.
And from a developer’s point of view, raising capital would be faster and cheaper. Instead of waiting months for banks or large investors, they could launch a tokenized real estate fund, coded with smart rules for ownership transfers and capital flows — all handled automatically on the blockchain.
Deloitte even pointed to real-world examples already happening today, such as Kin Capital’s $100 million real estate debt fund tokenized through the Chintai platform, where trust-deed-based lending is programmed into the blockchain.
Challenges Still Loom
As exciting as this future sounds, Deloitte doesn’t shy away from the hurdles.
The biggest challenges? Regulation, asset custody, cybersecurity, and what happens if things go wrong (like defaults).
Right now, rules around who can issue, hold, and trade tokenized real estate aren’t crystal clear in every country. And custody — the question of how and where these tokens are securely stored — is a major concern, especially when you’re talking about billions or trillions of dollars in assets.
Deloitte also warns about cybersecurity risks. If a hacker breaks into a platform holding thousands of real estate tokens, the consequences could be massive.
And then there’s the issue of defaults: what happens if a tokenized property investment fails? Traditional real estate has courts and contracts to handle that. Blockchain-based assets will need equally strong protections to win the trust of big investors.
The Big Picture
Still, despite the hurdles, the direction is clear: Real estate is going digital.
Deloitte sees tokenization not just as a new technology, but as a “core pillar” of the future real estate market.
The report mirrors a broader trend where real-world assets (RWAs) like bonds, commodities, and now real estate are being pulled into the blockchain world to unlock liquidity, accessibility, and transparency.
As Deloitte put it, tokenization “may soon become a core pillar of how property is financed, owned and traded.”
TokenFi’s RWA Tokenization Module
TokenFi wants to make tokenization simple and accessible for everyone, not just big companies or tech experts.
The idea is to give people an easy way to turn their real-world assets — like property, businesses, or creative ideas — into digital tokens without any hassle. With its upcoming RWA Tokenization Module, TokenFi promises a user-friendly platform where anyone can tokenize their assets in just a few clicks, with no technical skills or coding required. It will be as easy as setting up an online account, and TokenFi ensures the process stays compliant and straightforward.
