Sairam Jalakam Devarajulu, a Blockchain Technology Expert, writes a column for DM about the tokenization of real estate.
Real estate in many developing nations remains one of the most inaccessible asset classes. High property prices, complicated legal procedures, and deep-rooted bureaucracy have turned land and housing into something only a small fraction of the population can afford or invest in. But blockchain technology, specifically tokenization, is beginning to change that.
Tokenization refers to converting physical assets, like real estate, into digital tokens on a blockchain. Each token represents a share in the property, much like how stocks represent a share in a company. This simple shift can make real estate investment cheaper, more flexible, and vastly more inclusive.
In major cities across the developing world, real estate prices have outpaced income by 3–5x in the last decade (UN-Habitat). Tokenization enables fractional ownership, allowing individuals to invest as little as $50 into property shares.
Tokenized real estate also improves liquidity. In many countries, buying or selling property can take up to 6 months and cost 5–10% of the transaction value in fees (World Bank Doing Business Report). In contrast, digital tokens can be traded instantly, 24/7, with near-zero transaction costs.
Another major benefit is transparency and fraud prevention. The World Bank estimates that over 70% of land ownership in developing nations is undocumented or contested. Blockchain creates a permanent, tamper-proof record of ownership. Transactions are executed through smart contracts – automated programs that reduce manual errors and eliminate intermediaries.
Fractional ownership expands access. For instance, in a $100,000 property split into 10,000 tokens, each token could cost just $10. Multiple holders receive income proportional to their holdings, enabling micro-investors to earn from rent or property appreciation.
Beyond cities, tokenization helps redistribute capital. While urban real estate often attracts 80%+ of total investment, rural and semi-urban areas remain underdeveloped. Tokenized platforms could open up investment in secondary markets, fueling broader economic growth and infrastructure development.
Despite its promise, tokenization still lacks regulatory clarity.
Governments must define how tokenized assets are taxed, recorded, and enforced in courts. Without legal recognition, ownership disputes could arise—even with blockchain records. A robust legal framework and public-private collaboration are essential for scale.
Tokenization is more than just a technical innovation—it’s a financial equalizer. It gives ordinary citizens a chance to invest in one of the most stable asset classes, and it gives emerging markets a tool to unlock dormant value in land and infrastructure. With the right safeguards and scalable models, tokenized real estate could be a cornerstone of inclusive development.