According to a report released on Wednesday by Moore Global, the real estate digital revolution is sweeping the globe, with $1.4 trillion in international property assets expected to be tokenized over the next five years, allowing the real estate asset class to gain significantly more liquidity.

Moore global’s real estate experts believe that $1.4 trillion in property assets will be tokenized in the next five years. The shift to tokenization should give real estate a big boost by making it more affordable and accessible.

Moore Global’s real estate group chief, Dan Natale, says:

“Tokenisation is an emerging trend with potential to become a mega trend – and it is absolutely going to be a disrupter in global property markets. It has potential to lower the cost of capital, increase the pool of potential investors and increase liquidity.” 

“It could take time for a critical mass of institutions to invest with confidence in tokenised real estate. However, if even just 0.5% of the total $280 trillion global property market were tokenised in the next five years, it would become a $1.4 trillion market.” 

Real estate is a massive asset class that dwarfs all other asset classes. Given the constant capital appreciation and income rents, investors have employed the asset as a financial instrument to protect assets over the long term.

However, once money is put in real estate, that money is usually locked up for a long time. As a result, the establishment of a secondary market based on property asset tokenization has the potential to liberate massive quantities of liquidity.

RedSwan CRE, referenced in a Ledger Insights article, is an early example of such a procedure. Early last year, the business tokenized more than $2 billion in real estate. However, RedSwan wasn’t able to offer the first tranche of $300 million to investors until the end of the year. Those that purchase tokens have them locked for at least a year before they can sell them.

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