Tokenized real estate reached a total value of $392.5 million tracked on public blockchain as of early February 2026. The on-chain real estate market now consists of 58 tokenized assets across 10 countries, with 10,440 token holders and 396 monthly active addresses, according to data from rwa.xyz.
In the past 30 days, the market size has grown by 1.1%, and the number of holders has surged by 21% during the same period. RWA.xyz, a blockchain analytics platform specialized in real assets, collects data directly from asset issuers and aggregates on-chain activities across multiple networks.
Where is real estate being tokenized?
The United States and the United Arab Emirates are virtually leading on-chain real estate tokenization activities. According to several industry analyses, the two countries are leading global adoption based on regulatory frameworks that support blockchain-based ownership.
The initiative led by the Dubai government includes a pilot program by the land department aiming to tokenize $16 billion, or 7% of the entire city's real estate market, by 2033.
In the United States, platforms like RealT have tokenized over $150 million worth of rental properties during 2025, and Bergen County, New Jersey has digitized property registry records worth $240 billion onto blockchain infrastructure.
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Why is adoption still limited?
Despite blockchain promising fractional ownership and a 24-hour global market, tokenized real estate accounts for a very small share of the broad RWA market. According to rwa.xyz data from November 2025, private credit dominates the market at $18.91 billion, while tokenized U.S. Treasury bonds have surpassed $9 billion.
Recent academic analysis has pointed out that tokenized real estate suffers from low trading volumes, long holding periods, and limited secondary market activity. Most assets tracked by rwa.xyz have been found to have limited actual on-chain transfers despite theoretical liquidity advantages.
The gap between tokenization and actual tradeability stems from regulatory constraints, custody complexities, and unclear legal frameworks for cross-border real estate tokens. Even when represented on-chain, real estate is inherently less liquid compared to government bonds or private credit products.
Regulatory clarity varies significantly by jurisdiction. While the U.S. treats tokenized real estate as securities, authorities in the United Arab Emirates are conducting experiments through a sandbox program. Until an integrated regulatory framework is established, tokenized real estate is likely to remain in a niche area despite growing institutional interest in widespread RWA adoption.
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