The UAE leads globally in terms of tokenized real estate properties

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 which is tokenized real estate, with UAE 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 it 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, who have tokenized real estate projects, they are Canada, Mexico, 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 UAE’s leading stance 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 had tokenized $117.7 million of real estate assets, followed by Base at $81.5 million worth, and Stellar at $71.7 million.

While Ctrl Alt tokenization platform led in terms of most real estate tokenized asset valued at $124 million.

World Islands in UAE tokenized the most properties

In terms of tokenized properties, World Islands in the UAE had tokenized the most properties, with also DAMAC City tower being tokenized as well as 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 has a market value of $293 billion, or U.S. Treasuries which are at $10 billion, it is catching up to stocks which currently stand at $942 million in terms of total market value.

In terms of future outlook, Industry analyses, including forecasts from Deloitte, the expectation is that tokenized real estate could grow to over $4 trillion by 2035, driven by a compound annual growth rate (CAGR) of approximately 27%. While, 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 in 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 deployed a tokenized registry for Saudi properties, developed by SettleMint, with currently nine Proptechs building applications in its sandbox.

In an interview with Tahawul Tech, Adam Popat, CEO of SettleMint noted, “The MENA region should be commended for its level of ambition. At the same time, this isn’t premature. Tokenization technology has been around for about a decade, and we’ve seen years of pilots, proofs of concept, and experimentation by leading institutions. We’re now at an inflection point. This is the moment when the industry globally moves from pilots to production. From our perspective as a global business working across Europe, Asia, and the Middle East, this region is particularly well-positioned to lead the next phase of tokenization over the coming decade — especially in specific, high-impact use cases like real estate.”

While in an interview with Lara on the Block, CEO of Dar Global, Ziad El Chaarr, believes that tokenization of real estate is still a hobby unless regulated global crypto exchanges start to offer tokenized real estate assets for trading.