Tokenized property market poised to reach $3.2 trillion by 2030

Real Estate
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BCG CEO Christoph Schweizer | LinkedIn

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A recent report from Boston Consulting Group (BCG) announced the tokenized property market is projected to reach $3.2 trillion by 2030.

Tokenization, which enables fractional ownership of real estate through digital tokens, is gaining traction as an innovative investment approach, offering opportunities for individuals seeking alternative investments.

Through tokenized property investments, individuals can purchase digital tokens representing ownership stakes in physical real estate. This makes property investment more accessible, as it lowers financial barriers to entry in markets where property prices have surged. 

 “It’s a different way to invest because it has a lower threshold to getting into buying real property,” said retired banker Rick Phillips, an early adopter who owns portions of 12 properties.

Industry estimates project that tokenizing illiquid assets, such as real estate, could create a market valued between $2 trillion and $16 trillion by 2030. Specifically, tokenized home equity alone could contribute $3.2 trillion to this total, opening up "borderless" access to property ownership. 

Tokenization also addresses challenges such as liquidity, traditionally a significant barrier in real estate. By transforming real estate into a more liquid asset class, tokenization allows for easier trades, while the use of blockchain technology ensures transparency and security.

According to a 2024 NMSC report, from 2024 to 2030, the global real estate market is expected to grow at a compound annual growth rate (CAGR) of 5.8%

A 2023 FIBREE report reveals that in 2023, every continent saw at least a 40% growth in tokenized real estate projects, with the USA and the UK leading the market.

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