The global market for tokenized real estate could rise to $4 trillion by 2035

Currently valued at under $300 billion, the tokenized real estate market is expected to boom at a compound annual rate of 27% over the next decade

The global market for tokenized real estate could reach $4 trillion by 2035, according to a new report by the Deloitte Center for Financial Services.

Currently valued at less than $300 billion, the tokenized real estate market is expected to grow at a compound annual rate of 27% over the next decade. Tokens, which represent ownership stakes in assets that can be bought, sold, or traded, are expected to bring real estate investment to a global audience.

The report highlights how tokenization can simplify complex financial structures. For instance, a real estate fund launched ‘on chain’ could feature smart contracts that automatically manage ownership transfers, capital distributions, and compliance procedures.

One such instance is Kin Capital’s upcoming $100 million real estate debt fund, which will operate on the blockchain platform Chintai using trust-deed-based lending mechanisms.

The study identified three core segments that will likely dominate the market’s evolution: private real estate funds, securitized loan ownership, and projects involving undeveloped or under-construction land. Among these, tokenized debt securities are projected to take the lead, with an estimated size of $2.39 trillion by 2035. Private real estate funds could contribute another $1 trillion, while land development assets may account for an additional $500 billion.

“Tokenization introduces a new level of customization for institutional investors,” said Deloitte. “Unlike traditional investment vehicles, blockchain-based tokens enable hyper-personalized portfolios to be constructed around specific investment theses.”

Deloitte also explored two primary ways for tokenizing existing real estate funds. One method involves an ‘off-chain’ approach, where loans are pooled by an originator, transferred to a special-purpose vehicle, and then used to issue blockchain-backed debt tokens. These tokens can be traded or used as collateral.

The second model centers around launching ‘on chain’ funds based on decentralized agreements between borrowers and lenders, with real estate held in a third-party trust until conditions are met.

Kin Capital’s planned 2025 fund on Chintai falls under this second category. The $100 million initiative will be offered to qualified institutional investors with a minimum commitment of $50,000, marking one of the first tokenized real estate funds revolving around trust deed lending.