In a recent analysis RWA.XYZ, a leading data platform for tokenized RWAs, published its recent tokenization data analysis, in which it added a new asset class, real estate. The UAE leads in the number of tokenized real estate assets, while the United States leads in terms of the value of tokenized real estate assets.
In its analysis, the platform shows that tokenized real estate, including direct ownership, funds, interests, REITs and real estate-backed debt, is now worth $356.2 million (in the last 30 days), where more than 10,000 holders own 57 tokenized assets across 10 countries.
Regarding the countries that have symbolized real estate projects, these are Canada, Mexico, United States, Romania, Italy, Spain, Greece and the United Arab Emirates.
However, it is the United Arab Emirates and the United States that stand out. The UAE tokenized 23 assets worth $129 million, while the United States tokenized 10 assets worth $145 million, demonstrating the UAE’s lead in terms of the number of real estate assets tokenized.
UAE-regulated Mantra Chain has tokenized the most real estate assets
In terms of blockchain networks, Mantra Chain, the UAE’s regulated tokenization network, takes the lion’s share in terms of networks. Mantra Chain has tokenized $117.7 million worth of real estate assets, followed by Base worth $81.5 million and Stellar worth $71.7 million.
Meanwhile, tokenization platform Ctrl Alt leads in terms of tokenized real estate assets, with a total value of $124 million.
Source: RWA.XYZ
In terms of tokenized properties, the UAE World Islands have tokenized the most properties, with the DAMAC City Tower being tokenized as well as the Dubai Marina Hotel, which was tokenized on XRP Ledger by Ctrl Alt. Other UAE properties include Kensington Waters and Sobha Creeks.
The size of the real estate tokenization market is still small
Although the size of the real estate tokenization market is still small compared to other tokenized assets such as stablecoins, which stand at $293 billion, or US Treasuries, which stand at $10 billion, it is catching up with stocks, which currently stand at $942 million in terms of total market value.
In terms of future prospects, industry analyses, including forecasts from Deloitte, suggest that the tokenized real estate market could grow from less than $300 billion in 2024 to more than $4 trillion by 2035, driven by a compound annual growth rate (CAGR) of around 27%.
Tokenized real estate debt securities are expected to account for the highest share of the market, potentially reaching $2.39 trillion by 2035, followed by private real estate funds at $1 trillion.
In the MENA region, the UAE is currently leading on this front, but with Saudi Arabia’s recent foray into real estate tokenization, it could soon become a leading player in the sector as well. The Real Estate Registry Authority, part of REGA in Saudi Arabia, has developed a tokenized registry for Saudi properties, built by SettleMint, with nine Proptechs currently building applications in its sandbox.
