Tokenization is the conversion of property ownership rights into digital tokens stored on the blockchain. This technology is rapidly gaining popularity and is seen as a key factor in the future modernization of the real estate market. According to analysts at Boston Consulting Group, the global tokenized real estate market could grow to $16 trillion by 2030, up from about $2.7 billion in 2022.
The primary interest in tokenization stems from its potential benefits: lower investment barriers, the ability to trade around the clock, automated rent payments, and even the ability to borrow against a small stake in real estate. This approach is expected to provide liquidity, fractional ownership, and transparency to an asset class known for its illiquidity and paperwork. In theory, blockchain makes the residential real estate market more accessible and technologically advanced.
In practice, however, the transition is not so simple. The traditional real estate market retains advantages such as legal protection, the ability to pay through a bank, and processes that have been well-established for decades. Many of the claimed benefits of tokenization have not yet been proven, particularly in terms of secondary market liquidity. The expectation of a vigorous resale of tokens remains more of a hypothesis than a proven fact. The main problem is not the digitization of property rights itself, but the lack of a key element: up-to-date market data.
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Lack of real-time data as a system limitation
Creating a digital token for residential real estate is technically possible, but ensuring accurate market valuation of such a token is significantly more difficult. Unlike stocks, which trade at constantly updated prices, real estate is valued sporadically: through appraiser reports, purchase and sale transactions, and quarterly reviews. Tokenization, however, requires continuous pricing. If data is updated slowly or selectively, the token’s value may not reflect reality.
For a tokenized model to truly function, a constant flow of up-to-date information is essential: actual transaction prices, changes in rental income, facility occupancy dynamics, and maintenance and repair costs. Without this, the token market cannot fulfill its core function—ensuring transparency and trust.
Why automation is impossible without up-to-date data
Most of the benefits of tokenization stem from automated processes: income distribution, share revaluation, property rights management, and collateral enforcement. However, these digital mechanisms cannot function without reliable data.
If a tenant delays a payment or signs a new lease, these changes must be reflected immediately in the system. Otherwise, yield calculations become unreliable. Secured lending mechanisms work similarly: if the property’s value declines, this must be reflected in real time, otherwise the risk of incorrect collateral assessment increases.
Companies working with blockchain solutions use specialized systems for transmitting external data into digital networks—so-called oracles. However, the effectiveness of such tools directly depends on the quality of the information sources. If the data is inaccurate or delayed, the entire digital infrastructure becomes vulnerable.
The State of Residential Real Estate Data: Is the Sector Ready for Tokenization?
One of the key prerequisites for the development of residential real estate tokenization is access to high-quality, real-time data. However, the current market structure shows that information updates at different rates depending on the type of data, and truly real-time pricing still lacks.
The market operates on several levels of information, each with its own limitations in terms of accessibility and relevance.
Advertisements and asking prices
Information about listed properties is updated most quickly. On open portals, new listings and price changes often appear within minutes. In the US and Dubai, for example, the listings market operates virtually in real time.
However, asking price data does not reflect the actual transaction value. Listings may be duplicated, adjusted without explanation, or initially inflated, making this source a poor guide to real pricing.
Closed deals and actual prices
The situation with actual sales data is much more complicated. In most countries, information on closed transactions becomes available with a significant delay.
Dubai remains an exception—transactions there are published the same day through the Land Department, a rare example of transparency. In the US, data is spread across thousands of administrative districts, and updating it can take weeks. In Europe and Asia, the delay often reaches several months.
As a result, market participants are forced to work with fragmented sets of information that require processing by data aggregators, but still remain incomplete and unsynchronized.
Operating indicators
Data on property yields, rental payments, and occupancy levels is almost never published in real time. Even large investment funds disclose such information only in quarterly reports.
For residential real estate tokenization: indicators must still be entered manually by the management company. This creates risks and reduces trust in digital representations of properties, as users cannot verify the data over time.
Tokens lose value without data
When information updates slowly, the formation of a token’s market value also slows. If a sale of a similar token occurred recently but won’t be announced for another month, the digital asset’s price will remain based on outdated information.
Delays create an uneven playing field for market participants: those with proprietary data gain an advantage when trading. This subsequently undermines trust and reduces liquidity.
Without up-to-date data, even automated assessment models are meaningless. Algorithms can only process the information fed into the system. If the figures are out of date, the results will be formulaic and inaccurate, regardless of the complexity of the calculations.
How delays affect token yields
Tokenization allows for automatic income distribution, but without real-time information, this mechanism becomes vulnerable. If tenants move out and the system takes a long time to reflect this change, income is overestimated. When the information is updated, the token value can adjust sharply.
Without a continuous flow of information, digital assets become static records without market dynamics. This directly contradicts the goal of tokenization —the creation of a flexible and liquid market.
Infrastructure is more important than technology
Blockchain platforms are already technically ready for large-scale tokenization. Legal frameworks have been developed in many countries. However, the main gap remains in data infrastructure.
Without a unified standard that integrates financial indicators, legal information, and market analytics, the market remains fragmented. Digitizing assets alone doesn’t create liquidity—it only arises with regular and verifiable sources of information.
Positive examples in Southern Europe
In southern European regions, steps are already being taken to create a digital foundation for real estate.
Greece is implementing a unified property registry, combining tax, cadastral, and planning data. Cyprus is digitalizing its land registry and property tax system as part of the European Union’s Real Estate Development Fund (RRF) program.
Both initiatives are in line with the EU INSPIRE and Open Directives. Data, which involves the creation of interoperable, machine-readable geospatial data. If successfully implemented, these countries could become pilot sites for developing businesses based on the tokenization of residential real estate in the EU.
Residential real estate tokenization centers
Since the real estate market’s ability to tokenize directly depends on data transparency, the key question is which regions are best prepared for the transition to a digital environment. Those regions that have already established not only a legal framework but also a modern information infrastructure are increasingly being cited as leaders.
Dubai is the first fully operational ecosystem
Dubai is considered the most advanced example. The region has already established a digital framework for its residential real estate market, and regulators are actively supporting the implementation of blockchain solutions at the national level.
In 2025, the Dubai Land Department launched a pilot project to tokenize property title deeds, essentially formalizing blockchain in the real estate sector. Analysts estimate that this initiative could create a fractional ownership market in Dubai worth approximately $16 billion over the next few years.
A comprehensive approach, involving collaboration between government agencies, regulators, and real estate technology companies, significantly boosts investor confidence and cements Dubai’s status as a global hub for residential real estate tokenization. The rapid pace of transaction publication and favorable regulatory environment create conditions for digital assets to operate in near real time.
The United States is a large market with partial digitalization
The United States remains a promising destination due to its market size and developed technology sector. The amount of data here is significantly higher than in most countries, but it is spread across various administrative regions and databases.
Some states already have expedited property registration systems in place, and numerous services help collect information on transactions, rentals, and occupancy rates. Some startups are already offering tokenized shares in rental properties in the US, complete with dashboards displaying current rents and occupancy rates.
The main obstacle is data fragmentation and the lack of a unified regulatory framework. However, by streamlining standards and accelerating data processing, the US could become a market where trading in tokenized residential real estate would be comparable in transparency to the stock exchange.
Singapore and Europe: Potential in the making
Singapore stands out in Asia. It combines a favorable fintech environment with an active government digital policy. Most real estate information is published regularly, albeit monthly rather than in real time.
Progress in Europe has been less dynamic. The UK has experimented with blockchain technology in its land registry, but most markets have not yet adopted the rapid disclosure of information. A lack of standardization and delays in publishing transactions are limiting the adoption of tokenized models.
In practice, the regions that will lead the way are those that combine transparent legal regulations and fast digital data processing. Without these two conditions, tokenization remains a technological experiment rather than a fully-fledged market.
Addressing data gaps
For tokenized residential real estate to move from a niche product to a mass market, the entire information processing system needs to be modernized. A shift from episodic reporting to continuous updating is required, similar to how financial markets function.
It means:
- acceleration of registration of transactions;
- mandatory prompt disclosure of changes;
- creation of digital data transmission channels;
- harmonization of standards between the state and business.
Integrating leases, debt, capital expenditures, and valuations into a single digital system will allow for the synchronization of physical assets and digital tokens .
The industry’s development is impossible without close collaboration between regulators, investors, and developers. Open information about practical examples and challenges builds trust and facilitates informed decision-making.
Partial transparency doesn’t create a stable market. Tokenization is either fully implemented or remains a formality. Those markets that prioritize trustworthiness and openness will win.
