Tokenization of Real Estate: A Technological Revolution in Property Investment

Abstract

The report examines the Tokenization concept in the real estate market with detailed analysis.The report explains the process of tokenizing real estate physical assets into digital tokens that are used on block chain platforms in an attempt to promote buying and selling transactions. The report identifies investment implications of tokenized real estate assets through financial calculations and analyses as well as implementation roadmaps, financial models and strategic considerations. The study incorporates data from existing studies and empirical realities and draws ideas from DAO PropTech operations as a property tokenization platform from Pakistan. A model of a PKR 50 million property is applied where 300 tokens were issued at PKR 166,667 per token. The financial model indicates early annual return of 6.84% via rental income distribution to token holders. The example demonstrates how DAO PropTech uses a model for real-life practical implementation of the concept. Tokenization demonstrates the potential to increase real estate investment accessibility while enhancing efficiency and easy access in Pakistan.