According to a Deloitte report, real estate tokenization could change significantly by 2035, surpassing the $4 trillion mark. Let's look at the key points and forecasts in this area.
Tokenization and Projections
Deloitte's report predicts a significant increase in the tokenized real estate market to $4 trillion by 2035. Key factors driving this growth include institutional demand and technological advancements related to blockchain.
Growth of Tokenized Assets
Analysts highlight the potential for significant growth in blockchain-based real estate products. These developments create opportunities for programmable ownership and enhanced market accessibility, potentially reshaping investment landscapes. An expected compound annual growth rate of 27% is driven by institutional interest in tokenized debt securities.
Stability of Tokenized Assets During Crises
Historically, financial instability, such as the 2023 banking crisis, has often increased demand for tokenized assets. Investors turn to tokenized real-world assets as secure havens in such times, influencing market dynamics. Chris Yin, co-founder of Plume Network, states, "Investors want targeted access to these modern use cases, and tokenization enables programmable, customizable exposure to such evolving asset profiles."
The tokenization of real estate, according to Deloitte’s forecast, could play a crucial role in the investment market. Projected growth and the stability of tokenized assets may transform investment approaches to real estate.
