If you’re reading this, there’s no doubt you can name a few killer features of Web3: decentralization, transparency, and increased control over your assets. Luckily, these principles can be applied to pretty much anything that people do or own. Real estate is no exception.

## Real estate in web3

Lately, there’s been an intensifying trend for the tokenization of real-world assets (RWA) – things from the off-chain world, tangible (from gold to real estate) and intangible (public bonds, stocks). **Tokenization means their ownership rights are put on the blockchain**. A tokenized villa in Bali belongs to those who hold the tokens issued specifically for this villa.

### How it all started

The concept of tokenization emerged in 2001. It was something totally different back then: sensitive cardholder information was replaced by so-called tokens to ensure the secure transfer of data.

**The ground for tokenization, as we know it today, was laid in 2015 when the Ethereum blockchain was launched.** Smart contracts introduced programmable tokens that could represent ownership of anything from the digital and the physical world.

**The first large project dedicated to the tokenization of RWA **was built in 2017. tZero was a platform allowing users to trade security tokens, it raised $134 million in an ICO.

**The first cases of real estate tokenization date back to 2018.** A luxury $30M apartment in Manhattan was tokenized on Ethereum, but the deal was pulled following a lack of demand.

A more successful case took place in Colorado – owners of the St. Regis Aspen Resort sold real estate security tokens worth $18M on the Indiegogo crowdfunding platform. Later, they released Aspen coin in partnership with an SEC-registered operator. However, the laws were still not developed enough to make real estate tokenization a massive trend.

## Tokenization today: a global trend

Today, the market of real estate crowdinvesting and fractional ownership is growing at a huge pace. According to [++research++](https://www.polarismarketresearch.com/industry-analysis/real-estate-crowdfunding-market), it will surge 45% yearly until it** reaches $250B in 2030 from today’s $10B**. One of the reasons for this is the increasing adoption of cryptocurrency: the global number of crypto users is expected to reach 1 billion by 2030.    

![](https://link3-image.cyberconnect.dev/0adfd6f2-bf98-4b93-b96f-3c9382571dc3/f9364042407337ff)

Mastodons like [++Boston Consulting Group++](https://web-assets.bcg.com/1e/a2/5b5f2b7e42dfad2cb3113a291222/on-chain-asset-tokenization.pdf) and the [++World Economic Forum++](https://www.weforum.org/events/world-economic-forum-annual-meeting-2023/sessions/tokenized-economies-coming-alive) predict that the **market of tokenized real-world assets will grow 50X by 2030.** And right now, real estate is the [++most widely++](https://research.binance.com/en/analysis/real-world-assets) tokenized RWA, according to a report by [++Binance Labs++](https://research.binance.com/en/analysis/real-world-assets).

## Perks of tokenized real estate

**Real estate is a huge $330 trillion market that offers a very good income, but it’s hard to invest in it in a traditional way **– you have to own a lot of money and be ready to spend months.

**Therefore, tokenization has the potential to disrupt the traditional market** by offering increased liquidity, fractional ownership, transparency, lower transaction costs, and faster processing times both to investors and owners. Learn more from the [++Real-World Asset Tokenization 2023 Report++](https://www.binaryx.com/rwa-tokenization-report.html) prepared by the Binaryx Platform team.

**Tokenization of real estate unlocks a number of benefits:**

- **Liquidity.** The traditional real estate market is illiquid – it takes months to sell or buy a property. Tokens are a much more liquid asset that can be easily traded.
- **Fractional ownership. **Investors don’t have to buy the entire tokenized property to profit from it: tokens allow them to own just a small fraction.
- **Lower barrier to entry.** Since you can invest in only a fraction of a property, you don’t have to be rich anymore to become a real estate investor. In the tokenized property market, you can start from just $50 or $100.
- **Sustainable yield brought on-chain.** The real estate market is widely known for its high and stable returns, but they have been inaccessible to most people until now. Today, small crypto investors can enjoy the stable income offered by real estate.
- **Transparency.** The traditional real estate market is notoriously non-transparent: it’s a challenge to collect the entire body of information necessary to strike a deal. When the bargain is made on-chain, many details become much more visible.

## How do I invest in tokenized real estate?

You can buy property tokens on marketplaces of tokenized real estate: RealT, Lofty, Landshare, and others. Some of them offer properties only in the USA, others list options in the UAE. [++Binaryx Marketplace++](https://app.binaryx.com/) discovers real estate in Bali – the market there is booming due to a huge influx of people from all over the world and a constantly increasing demand. However, we are planning to list properties in the UAE and Europe, too – so investors can build a diversified real estate portfolio in one place.

The investing flow is very easy – you simply buy tokens starting from $50 or $100 (depending on the marketplace), and** that makes you an official co-owner of the property in the real world**. To register you as such in accordance with the law, you will be asked to pass a KYC check prior to the purchase. If you want to learn more about the legal framework, we can explain how it works in Binaryx. Check out [++this article++](https://medium.com/@binaryx.com/how-to-earn-passive-income-from-real-estate-if-youre-not-a-millionaire-5cd3099fe333) in our blog or our [++Docs++](https://docs.binaryx.com/legal/legal-framework-overview).

## How do I earn rental income from my property tokens?

**As an official property co-owner, you earn rental income from your property tokens. **Here’s how this works: the marketplace finds tenants for newly sold properties, and when they start paying rent, the money is put on the smart contract and distributed among token holders. In Binaryx, income accrues on a daily basis in USDT, and you can withdraw it anytime with no minimum or maximum limits.

**Like in the traditional real estate market, you earn rental income from your property only in case it’s rented out.** Marketplaces usually list properties in attractive locations where it’s easy to find tenants. The first property on Binaryx Marketplace [++was sold++](https://twitter.com/BinaryxPlatform/status/1641793409823264768) on March 28, and its rent start date was March 31 – so the tokenized apartment has started to bring income almost right away.

**If a property is in a good location, it will grow in price, increasing the value of your tokens.** Marketplace oracles monitor property prices and enter the changes in the smart contract. Once your token value grows, you can keep it to continue earning rental income or sell it to realize a profit.

[++**Binaryx Marketplace**++](https://app.binaryx.com/) launched on Polygon mainnet in March 2023 and sold the first tokenized apartment in Bali in 14 hours. The second sale will be held in May. Follow our [++social media++](https://twitter.com/BinaryxPlatform) to stay tuned!


If you’re reading this, there’s no doubt you can name a few killer features of Web3: decentralization, transparency, and increased control over your assets. Luckily, these principles can be applied to pretty much anything that people do or own. Real estate is no exception. Real estate in web3

How to Invest in Real Estate in Web3? 

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