RLP Blog

Tokenisation – The Future of Real Estate Investment?

Saïd Business School, University of Oxford, presents a thought-provoking paper titled "Tokenisation - The Future of Real Estate Investment?" that delves into the prospects of digitizing real estate assets.

Tokenization involves converting real estate assets into digital tokens, paving the way for new investment opportunities.

However, there are significant challenges to address:

🔻 Limited demand for fractionalization of single assets and the need for broader acceptance of blockchain technology.

🔻 Consideration of the costs and complexities associated with fractionalization and tokenization.

🔻 The necessity of establishing an intermediate structure, which can increase costs and impede the democratization of investments.

🔻 Tokenization is more likely to thrive in funds and debt, where fractionalization demand already exists.

While the possibilities of real estate tokenization are exciting, it remains in its early stages and requires time to gain widespread acceptance. Focusing solely on fractionalizing single assets may hinder innovation, with broader adoption potentially further down the road.

#RealEstateInvestment #Tokenisation #FutureTrends