The tokenized real estate market could reach $ 1.4 trillion despite a slow start, the report said.



Tokenized property remains niche, largely due to its relative novelty and continued regulatory uncertainty. However, the new report notes that even if only 0.5% of the total global real estate market is tokenized in the next five years, it will be on track to become a market with a turnover of 1.4 trillion dollars.

In recent years, the total value of the global real estate market has reached a staggering $ 280 trillion, surpassing most other major asset classes and on par with the value of total global debt accumulated by 2020. Moore Global, a London-based international consultant and accounting network, has released a report that brings together expert opinions from around the world on the potential for tokenization for this thriving, albeit traditionally illiquid, asset class.

According to Dan Natale, Head of Real Estate and Construction at Moore Global and Managing Partner of Segal LLP in Toronto, a key benefit of blockchain to the sector is increased liquidity by providing efficient infrastructure without intermediaries to support emerging secondary markets. For his part, David Walker, managing partner of Moore Cayman, who works as an auditor specializing in digital assets, said that the transparency and security of the technology also offer clear benefits from an auditor’s perspective.

So far, the proliferation of real estate tokenization has fallen short of expectations, in part due to the indecision of institutional investors and the lack of established secondary markets for trading security tokens… This, however, may gradually change when the UK Financial Conduct Authority provides digital security exchange operating license Archaz in August last year. A year earlier, the German Federal Financial Supervision Authority (BaFin) approved its first blockchain-based real estate bondreleased on Ethereum.

Connected: Tokenized real estate doesn’t live up to the hype: real estate researcher

Andrew Baum, director of the Future of Real Estate Initiative at Said Business School at the University of Oxford, believes that real estate tokenization could finally take off if there is evidence of investor demand for fractional ownership – something that proponents of tokenization have. champion since 2017

Last summer, a security token representing fractional ownership of the luxury resort complex St. Regis Aspen in Colorado, was launched on the Overstock regulated exchange tZERO. attracting record trading volumes… However, in less than a month token shows relatively stable performance amid a slowdown in coronavirus growth, investors have been offered significant discounts on their stay at the resort to help boost token sales. However, tZERO recently partnered to tokenize NYCE Group shares worth $ 18 million – a platform that is being touted as potential. “Robinhood Real Estate Investing… “