The Deloitte Center for Financial Services has released groundbreaking projections for the real estate tokenization market, predicting exponential growth over the next decade.
The global market for commercial real estate tokenization is expected to expand dramatically, with US$4 trillion of real estate tokenized by 2035, increasing from less than US$0.3 trillion in 2024. This represents a compound annual growth rate (CAGR) of 27%.
1. Tokenized Private Real Estate Funds Expected to grow to US$1 trillion by 2035, with a total market penetration rate of 8.5%. This segment represents the greatest potential opportunity for growth.
2. Tokenized Ownership of Loans and Securitizations Could grow to US$2.39 trillion by 2035, with a total market penetration rate of 0.55%. This is expected to represent the highest share of tokenized real estate.
3. Tokenized Ownership of Undeveloped Land and Under-Construction Projects Expected to reach US$50 billion by 2035, with a total market penetration rate of 0.80%.
Tokenization could help build trillions of dollars of economic activity for the real estate sector by:
Kin Capital: Plans to launch a US$100 million real estate debt fund on Chintai blockchain in 2025, with a minimum investment of US$50,000 for qualified institutional investors globally.
Figure Technologies: Reached HELOC originations of more than US$13 billion and announced its first publicly rated, blockchain-based HELOC ABS securitization in 2023, with estimated cost savings of about US$850 per US$100,000 mortgage.
T-RIZE Group: Signed a US$300 million deal in 2024 to tokenize Project Champfleury, a 960-unit residential development in Canada.