Tokenized real estate tracked on public blockchains has reached $392.5 million in total value as of early February 2026. The on-chain property market now spans 58 tokenized assets across 10 countries, with 10,440 token holders and 396 monthly active addresses, according to data from rwa.xyz.
The market grew 1.1% over the past 30 days, while holder count surged 21% during the same period. RWA.xyz, a blockchain analytics platform specializing in real-world assets, aggregates data directly from asset issuers and verifies on-chain activity across multiple networks.
Where Properties Are Tokenized
The United States and United Arab Emirates dominate on-chain real estate tokenization activity. Multiple industry analyses confirm both countries lead global adoption, driven by regulatory frameworks that support blockchain-based property ownership.
Dubai's government-backed initiatives include the Land Department's pilot program targeting $16 billion in tokenized property by 2033, representing 7% of the city's real estate market.
In the U.S., platforms like RealT tokenized over $150 million in rental properties during 2025, while Bergen County, New Jersey digitized $240 billion in property records onto blockchain infrastructure.
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Why Adoption Remains Limited
Despite blockchain's promise of fractional ownership and 24/7 global markets, tokenized real estate represents a tiny fraction of the broader RWA market. Private credit dominates at $18.91 billion, while tokenized U.S. Treasuries exceed $9 billion, according to November 2025 rwa.xyz data.
A recent academic analysis found tokenized real estate suffers from low trading volumes, long holding periods, and minimal secondary market activity. Most properties tracked on rwa.xyz show limited transfer activity despite theoretical liquidity advantages.
The gap between tokenization and actual tradability stems from regulatory restrictions, custody complications, and unclear legal frameworks for cross-border property tokens. Even with on-chain representation, real estate remains fundamentally illiquid compared to government debt or private credit instruments.
Regulatory clarity varies dramatically by jurisdiction, with the U.S. treating tokenized properties as securities while UAE authorities experiment through sandbox programs. Until unified frameworks emerge, tokenized real estate will likely remain a niche segment despite growing institutional interest in broader RWA adoption.
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