The recent REALTYon 2025 in Limassol featured a panel discussion on the role of blockchain in transforming the residential property market. The focus was on tokenization , which is changing the landscape of property ownership by lowering barriers for investors and speeding up the transaction process.
The discussion was moderated by George Agathanjelou , Chief Operating Officer of IPMB. The panel included leading experts: Zoran Radovanovic , CEO and founder of Breinrock ; Sergey Ivanov, CEO and founder of Alma ; Oren Abiri , Director of Corporate Affairs at XBO.com, and Michael Pelosi , Senior Counsel at Elias Neocleous & Co LLC. They shared their global experience covering legal, technical and governance aspects of tokenization .
What is tokenization ?
Tokenization allows a residential property to be divided into digital shares. Each share costs only a few hundred euros, making investment accessible to a wider range of people. Investors can earn rental income and capital gains while avoiding the high costs of purchasing the property outright.
Unlike traditional trades, tokens can be bought and sold on digital platforms 24/7. Blockchain enables instant transactions, eliminating delays associated with banking hours and weekends. This gives investors real access to the market at any time.
Benefits of Residential Real Estate Tokenization
Zoran Radovanovic of Breinrock noted that using blockchain allows for a significant reduction in transaction fees. Fees that range from 1.5% to 5% for traditional payments are reduced to less than 1%. This increases the net profit of investors, reduces the burden of hidden fees, and accelerates capital turnover.
Smart contracts automate the process of transferring property and complying with legal regulations. This eliminates the human factor, reduces legal costs associated with paperwork, and increases transparency at all stages of the transaction thanks to blockchain technologies.
Michael Pelosi from Elias Neocleous & Co LLC emphasized that tokenization regulation is still in its formative stages. Legal support from specialists with experience in cryptocurrencies and securities ensures compliance from the very beginning and opens channels for influencing policy through dialogue with regulators.
Tokenization as a financing tool
Tokenization opens up new opportunities for developers. Attracting investments through digital assets allows for the implementation of projects that might not otherwise receive financing under traditional banking criteria.
Oren XBO’s Abiri noted that the use of digital identification and electronic signatures reduces paperwork, eliminates administrative hurdles and speeds up the transaction process.
Tokenization of residential real estate is changing the market by making it more accessible, faster, and more transparent. Successful implementation of this technology requires active collaboration between investors, developers, and regulators. New strategies and technologies, such as tokenization , are helping to shape the future of the residential real estate market by offering new opportunities for its participants.
