Deloitte Predicts $4 Trillion in Tokenized Real Estate on Blockchain by 2035
Introduction
Could blockchain technology revolutionize the real estate market by unlocking trillions in liquidity? According to a recent report by Deloitte, the answer is a resounding yes. The consulting giant predicts that over $4 trillion worth of real estate assets could be tokenized on blockchain networks by 2035, up from less than $300 billion in 2024. This staggering growth, with a compound annual growth rate (CAGR) of over 27%, signals a seismic shift in how property ownership and investment will function in the coming decade.
The Driving Forces Behind Tokenized Real Estate
1. Structural Shifts in Real Estate Demand
The real estate sector is undergoing a fundamental transformation. Post-pandemic trends like remote work, climate risk considerations, and rapid digitization are reshaping property fundamentals. As Chris Yin, co-founder of Plume Network, explains:
“Office buildings are being repurposed into AI data centers, logistics hubs, and energy-efficient residential communities. Investors want targeted access to these modern use cases, and tokenization enables programmable, customizable exposure to such evolving asset profiles.”
2. Blockchain’s Efficiency Advantages
Tokenization offers several key benefits that are driving adoption:
- Fractional ownership: Allows smaller investors to participate in high-value properties
- Increased liquidity: 24/7 trading of tokenized assets vs traditional illiquid real estate
- Reduced intermediaries: Smart contracts can automate many processes currently handled by middlemen
- Transparency: Immutable ownership records on blockchain
3. Macroeconomic Factors Boosting RWA Tokenization
The report notes that recent economic uncertainties, including trade tensions under the Trump administration, have accelerated interest in tokenized real-world assets (RWAs) as safe-haven investments. This mirrors the surge in tokenized gold, which saw trading volumes exceed $1 billion in April 2025 – levels not seen since the 2023 US banking crisis.
Regulatory Landscape: Challenge or Opportunity?
While regulatory uncertainty remains a hurdle, industry leaders believe adoption will drive clarity. Yin draws parallels to Uber’s growth:
“Tokenization is similar – as demand increases, regulatory clarity will follow. Making tokenized products compliant with international regulations is key to unlocking broader market access.”
However, not all experts agree on real estate being the ideal use case for tokenization. Michael Sonnenshein, COO of Securitize, argues:
“I don’t think tokenization should have its eyes directly set on real estate… what the onchain economy is demanding are more liquid assets.”
Projected Growth and Market Impact
Deloitte’s projections suggest the tokenized real estate market will experience:
- 27%+ CAGR through 2035
- 13x growth from 2024 levels
- Global participation as markets mature
The $4 trillion estimate represents a significant portion of global real estate value, suggesting tokenization could become a standard method for property investment and ownership transfer within our lifetimes.
Conclusion: Preparing for the Tokenized Future
The Deloitte report makes clear that tokenized real estate is transitioning from niche experiment to mainstream financial instrument. For investors and industry participants, key takeaways include:
- Early movers may benefit from first-mover advantages in this emerging market
- Regulatory engagement will be crucial for sustainable growth
- Infrastructure development (wallets, exchanges, compliance tools) needs to keep pace with demand
As blockchain technology continues to mature, the $4 trillion prediction may prove conservative. The real question isn’t whether real estate tokenization will happen, but how quickly market participants can adapt to this new paradigm of property ownership.
