Real Estate Market
Whitepaper - Real Asset Capitals
Last updated
Whitepaper - Real Asset Capitals
Last updated
The global real estate market size was valued at USD 3.69 trillion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2022 to 2030. The market is expected to grow at a healthy pace during the forecast period, owing to the rising population and a desire for personal household space. As of 2021, the commercial real estate space was estimated to be the most important element driving industry expansion.
In terms of revenue, the rental type dominated the market with a share of 52.1% in 2021. This is attributable to rising home prices in developed countries, owing to which there is a rise in the number of renters, favoring the segment growth. For instance, according to a blog published by Mansion Global, Germany is the country of renters with about 60% of the properties being rented in 2021.
The asset tokanization market is estimated to reach 16 trillion dollars by 2030. Several analysts see this sector as one of the most favorable to the entry of investments by companies in the world of crypto assets. Furthermore, in March 2024, BlackRock (asset manager valued at 10 trillion dollars) launched the first tokenized fund registered on blockchain.
Blockchain technology has the ability to expand access to property for everyday investors, provide near real-time settlement of recorded transactions, reducing friction, costs, risks and eliminating the need for trust.
Tokenization and fractional ownership provide a clear solution to these problems and allow retail investors to participate with lower barriers to entry.
Access to real estate investment and other sectors has been restrictive for most demographics due to rising land values ​​across the world and global inflation over the past five decades. Property ownership reached the lowest percentage of total population per capita worldwide in 2023 and continues on a downward trajectory for most retail investors and younger generations.
