UAE claims lead in number of tokenized real estate assets globally

In a recent RWA.XYZ analysis, a leading data platform for tokenized RWAs, has published its recent tokenization data analysis, where it has added a new asset class, real estate. The UAE is leading in the number of tokenized real estate, while the USA leads in terms of the value of tokenized real estate assets.

In its analysis, the platform showcases that tokenized real estate, including direct ownership interests, funds, REITs, and real estate-backed debt, is now worth $356.2 million (past 30 days), where more than 10,000 holders own 57 assets tokenized across 10 countries.

In terms of countries that have tokenized real estate projects, they are Canada, Mexico, the USA, Romania, Italy, Spain, Greece, and the UAE.

However, it is the UAE and the USA that stand out. The UAE has tokenized 23 assets valued at $129 million, while the USA has tokenized 10 assets valued at $145 million, showcasing the UAE’s lead in terms of the number of tokenized real estate assets.

UAE-regulated Mantra Chain has tokenized the most real estate assets

In terms of blockchain networks, Mantra Chain, the regulated tokenization network out of the UAE, has the lion’s share in terms of networks. Mantra Chain tokenized $117.7 million of real estate assets, followed by Base at $81.5 million worth, and Stellar at $71.7 million.

Meanwhile, the Ctrl Alt tokenization platform led in terms of the most real estate tokenized assets, with $124 million in total value.

In terms of tokenized properties, World Islands in the UAE 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 included Kensington Waters and Sobha Creeks.

Real estate tokenization market size is still small

While the real estate tokenization market size is still small compared to other tokenized assets such as stablecoins, which are at $293 billion, or U.S. Treasuries, which are at $10 billion, it is catching up to stocks, which are currently $942 million in terms of total market value.

In terms of future outlook, industry analyses, including forecasts from Deloitte, suggest the market for tokenized real estate could grow from less than $300 billion in 2024 to over $4 trillion by 2035, driven by a compound annual growth rate (CAGR) of approximately 27%.

Tokenized real estate debt securities are projected to represent the highest share of the market, potentially hitting $2.39 trillion by 2035, followed by private real estate funds at $1 trillion.

In MENA, the UAE is currently leading on this front, but with Saudi Arabia’s recent foray into real estate tokenization, it soon might also become a leading player in the sector. The Real Estate Registry Authority, part of REGA in KSA, has developed a tokenized registry for Saudi properties, built by SettleMint, with nine Proptechs currently building applications in its sandbox.