Real Estate Tokenization Set to Surpass $4 Trillion by 2035, Deloitte Reports

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According to a new tokenization report from the Deloitte Center for Financial Services, over $4 trillion worth of real estate could be tokenized on blockchain networks within the next decade. This marks a dramatic leap from the estimated $300 billion worth of tokenized property in 2024, with Deloitte projecting a compound annual growth rate (CAGR) of over 27%.

The growth of real estate tokenization could democratize property ownership, providing investors with easier, more customizable access to property markets traditionally burdened by high barriers to entry.

Also read: How RWA Tokenization Could Disrupt Financial Markets by 2030

How Tokenization is Reshaping Real Estate Investment

Blockchain technology offers an unprecedented ability to digitize ownership of real-world assets (RWAs), including real estate, making it easier to trade and fractionalize property investments. As Chris Yin, co-founder of Plume Network—a blockchain designed specifically for RWAs—explained, the real estate sector itself is evolving under the influence of post-pandemic trends, climate risks, and a surge in digital transformation.

Global tokenized real estate value, growth predictions. Source: Deloitte

“Office buildings are being repurposed into AI data centers, logistics hubs, and energy-efficient residential communities,” Yin told the media. “Investors want targeted access to these modern use cases, and tokenization enables programmable, customizable exposure to such evolving asset profiles.”

Tokenization could remove traditional inefficiencies associated with property investment, such as reliance on escrow services and intermediaries, thereby lowering costs and opening up property markets to a broader range of investors. As the report indicates, these efficiencies, combined with the structural evolution of real estate itself, are expected to fuel the sector’s explosive growth.

Also read: RWA Tokenization Takes Off with $1B US Real Estate Launch

Rising Interest in RWAs Amid Global Economic Uncertainty

The momentum behind real estate tokenization is also part of a larger surge in the popularity of blockchain-based RWAs. Heightened by geopolitical uncertainty and global trade tensions—particularly the import tariffs introduced during President Donald Trump’s administration—investors have increasingly turned toward stablecoins and tokenized assets as safe havens.

Juan Pellicer, senior research analyst at IntoTheBlock, noted that real-world asset tokenization has become a preferred strategy amid these turbulent conditions. A case in point: tokenized gold saw trading volumes surpass $1 billion on April 10, 2025, the highest level recorded since March 2023, when a banking crisis rattled U.S. financial markets.

As trust in traditional financial institutions wavers, the appeal of blockchain-based assets that offer transparency, programmability, and easier cross-border access continues to grow. Real estate, with its vast global value and traditionally illiquid nature, appears particularly ripe for disruption.

Also read: DeFi Meets TradFi: Tokenized US Treasuries Power a $5B Blockchain Revolution

Regulation: The Double-Edged Sword

Despite the sector’s promising outlook, regulatory uncertainty remains a significant hurdle. However, many industry participants believe that regulatory frameworks will evolve in tandem with market demand. Yin compared the trajectory of tokenized real estate to Uber’s early expansion: “While regulation is a hurdle, regulation follows usage.”

He stressed the importance of designing tokenized products that comply with a wide variety of international regulations, suggesting that broader regulatory acceptance could unlock access to global markets.

Nevertheless, some industry leaders urge caution. At Paris Blockchain Week 2025, Michael Sonnenshein, Chief Operating Officer at Securitize, expressed skepticism about real estate being the ideal focus for tokenization efforts.

“I don’t think tokenization should have its eyes directly set on real estate,” Sonnenshein remarked. “There are all kinds of efficiencies that can be unlocked using blockchain technology, but what the onchain economy demands today are more liquid assets.”

His comments shed light on a key tension within the tokenization movement: balancing the slow, asset-heavy nature of real estate with the blockchain sector’s hunger for liquidity and faster transaction cycles.

Also read: What Is Tokenization: A Comprehensive Overview

Conclusion: A Transformative Decade Ahead

As Deloitte’s report outlines, the next decade could witness a significant redefinition of how real estate is bought, sold, and owned. Blockchain technology, despite current challenges, is poised to drive this change by making real estate investments more accessible, efficient, and customizable through tokenization.

Also read: Discover the Visa Tokenized Asset Platform (VTAP)

Whether regulatory frameworks will evolve quickly enough to keep pace with innovation remains to be seen. Still, the potential for a $4 trillion tokenized real estate market suggests that blockchain’s impact on traditional asset classes will be both profound and lasting.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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