Tokenised real estate tipped for $3tn growth by 2035

Tokenised commercial real estate could be worth up to $3 trillion by 2035, according to a new Deloitte report outlining how blockchain-based asset structures could reshape global property markets.

Deloitte’s Real Estate Tokenisation 2024 report estimates the tokenised commercial real estate market could reach between $1.3 trillion and $3 trillion under a high-adoption scenario, up from less than $1 billion today.

Tokenisation refers to the process of converting real-world assets — such as office buildings or warehouses —into digital tokens that represent fractional ownership and can be traded on blockchain networks.

The report argues that tokenisation could bring substantial benefits, including greater liquidity, lower investment thresholds, and reduced administrative overheads.

“Tokenisation has the potential to revolutionise real estate markets by providing greater accessibility, liquidity, and efficiency,” said John D’Angelo, Deloitte’s real estate solutions leader in the United States and one of the report authors.

Each token can embed features such as dividends, governance rights or access to granular asset data, offering fund managers a more dynamic way to manage investor relations and real estate portfolios. Deloitte sees the most significant early-stage impact in private markets, where trading is often limited and investor access restricted.

However, the road to adoption is not straightforward. The report flags legal uncertainty, illiquid secondary markets and the lack of consistent technology standards as ongoing barriers. Deloitte urges real estate firms to launch pilot projects and engage with fintech providers and regulators. First movers could secure strategic advantage as tokenised models become more widely accepted.

Pilot platforms already operate in the United States, Germany and Singapore, mainly targeting retail investors through fractionalised property offerings. The authors expect institutional appetite to rise as regulatory clarity improves and tokenised assets begin to integrate with conventional vehicles such as funds and REITs.

The most optimistic scenario assumes favourable regulation, strong institutional interest and growing investor demand for alternative real estate access points. Even under moderate assumptions, tokenisation is expected to gain traction in specific sectors such as student housing, single-family rentals and logistics properties.