Deloitte Predicts $4 Trillion Tokenized Real Estate Market by 2035

Blockchain Adoption Expected to Reshape Property Investment Over the Next DecadeThe value of tokenized real estate could exceed $4 trillion by 2035, according to a new report from the Deloitte Center for Financial Services. The forecast reflects the growing adoption of blockchain technology in the real estate sector and a broader transformation in property ownership models.The report, published on April 24, estimates that tokenized real estate could grow from less than $300 billion in 2024 to over $4 trillion within a decade, driven by a compound annual growth rate (CAGR) of more than 27%.Drivers Behind the GrowthAccording to the report, the expected surge is fueled by both technological innovation and structural shifts in the real estate market:The impact of remote work trends, climate risk, and digitization is reshaping the fundamentals of property investment.Traditional office spaces are being repurposed into AI data centers, logistics hubs, and energy-efficient residential communities, noted Chris Yin, co-founder of Plume Network, a blockchain built for real-world assets (RWAs).Tokenization enables investors to gain customizable, programmable exposure to these evolving asset types, offering a way to diversify and target specific real estate sectors more efficiently.Macro Trends Supporting TokenizationThe report also notes that geopolitical uncertainty, including concerns about U.S. import tariffs under President Donald Trump, has boosted interest in real-world asset (RWA) tokenization.According to Juan Pellicer, senior research analyst at IntoTheBlock, RWAs and stablecoins have increasingly become safe-haven assets during periods of global trade tension.Tokenized gold volumes surpassed $1 billion in daily trading on April 10, the highest level since the U.S. banking crisis of March 2023.Regulatory OutlookWhile regulation remains a challenge, industry participants are optimistic that growing adoption will drive clearer legal frameworks."While regulation is a hurdle, regulation follows usage," said Chris Yin, comparing tokenization's trajectory to the early growth of companies like Uber.However, not everyone is convinced that real estate is the ideal initial focus for tokenization efforts. Speaking at Paris Blockchain Week 2025, Securitize COO Michael Sonnenshein argued that the blockchain economy currently demands more liquid assets rather than illiquid sectors like real estate."Efficiencies can be unlocked in real estate, but the current on-chain economy is looking for liquidity," Sonnenshein said.Despite differing opinions, Deloitte’s projections suggest that tokenized real estate could emerge as a major asset class by 2035, offering a new approach to property investment through the integration of blockchain technology, fractional ownership, and global market access, according to Cointelegraph.