The commercial real estate market is finally catching up to blockchain, as Wall Street now expects around $4 trillion worth of commercial real estate properties to be tokenized by 2035, a huge increase from less than $300 billion in 2024, according to data from Deloitte.
A decade ago, crypto first appeared in housing deals, mostly as a novelty. People would buy homes in bitcoin, then quickly convert back to cash.
But things have changed now, with companies like Propy now using crypto as collateral for both residential and commercial loans. That means buyers can borrow against their coins without selling them. Many prefer to keep their Bitcoin or Ether, which often appreciate faster than real estate itself.
Commercial companies move toward full blockchain adoption
Tony Giordano, founder of The Opulent Agency, said the commercial market is “right around the corner” from fully embracing the blockchain.
“I don’t see how the entire real estate industry will not be on the blockchain within ten years,” Giordano said. “It’s already here, people are recording everything on it, and it’s the most secure platform and technology to do it.”
He described the blockchain as a massive digital filing cabinet that can store billions of records permanently, from titles and deeds to mortgage bonds and transactions, without risk or loss.
Deloitte’s analysis shows that blockchain-based smart contracts could overhaul property operations, including buying, selling, leasing, and financing, which execute automatically once conditions are met, cutting out piles of paperwork and delays.
Deloitte also found that the same system could eventually connect with smart city services like energy billing, waste management, water use, and parking, integrating public utilities directly with real estate data.
The rise of tokenization is one of the clearest signs that the commercial real estate world is taking blockchain seriously. Tokenization turns ownership rights of a property into digital tokens, allowing investors to buy fractional shares instead of entire buildings.
This makes high-value properties accessible to smaller investors. But for now, U.S. investors can’t buy into U.S. tokenized real estate due to regulations, while international investors already can.
Another Deloitte report published in April said tokenization could create “trillions of dollars of economic activity” for real estate within the next decade by widening access and boosting liquidity. The projection of $4 trillion by 2035 shows how quickly that market could expand once regulation catches up.
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