The Practitioner Perspective: Tokenization of Real Estate

Abstract: This study explores blockchain’s potential in real estate development, focusing on the economic, legal, and technical framework for tokenization. Real estate development is a high-risk, capital-intensive process with long timelines. Blockchain can mitigate these challenges by dividing ownership and financial flows into digital tokens. Based on a literature review, the research examines the conditions for tokenization, suitable token structures, and its impact on project conception, considering different asset classes and property uses. Expert interviews are conducted to examine the necessary technical, legal and economic conditions for the implementation of tokenization in practice, additionally identifying both potential benefits and challenges.