The tokenization of real estate is transforming the real estate market. Investors are slowly beginning to bet on this trend that is taking hold worldwide.
According to the “Report on the profile of investors in tokenized real estate projects”, carried out by Reental, a company specializing in tokenized properties, among Latin Americans, Argentines are the ones who most opt for this type of investment, due to high inflation. and the economic situation.
To prepare this report, a survey was conducted of 2,000 investors around the world. With the results it was possible to establish that the average investor is between 30 and 55 years old and represents 69% of the total. Millennials (born between 1981 and 1993) are the ones who invest the most in real estate tokens, with 37% of the total.
However, Generation Generation Z (1994-2010), for its part, fell from 27% in 2023 to 20% today; while the so-called baby boomers (1949-1968) remain at 11%.
When distinguishing by gender, the number of men continues to increase and already exceeds 89% of the total, while women went from 15% in 2023 to 10.5% today.
The majority of those who invest in the real estate market make investments on a recurring basis and not only in the tokenized market. They are also interested in investing in the stock market, investment funds and the real estate sector. In all these fields, the number of investors increased, reflecting a preference for combining more well-known and accessible investment options with newer ones that involve different levels of risk and return.
Regarding investment, there is a large majority that moves between the minimum of the u$s100 and the US$10,500adding up to more than 84% of the total; almost 12% are in the range of US$10,501 to US$52,700and there is just over 3% that exceeds the US$53,000.
However, looking to the future, a considerable number of respondents (69%) would be willing to increase their investment above US$10,500 and would only choose to disinvest early if they needed immediate liquidity. One of the qualities that those who invest in tokenized projects value most is the possibility of immediately accessing their funds.
The residential market is the one that receives the most investments
Regarding the typologies of estatean overwhelming 87% opt for conventional residential (single-family and multi-family homes) and 62% are interested in the new types that are booming in the market, such as student and/or senior residences and coliving. But other options are also gaining strength, such as hotels (64%), the coworking and data centers (48%).
Among preferences for locations, Spain is the center of interest, followed by Europe and the United States, and, somewhat further away, Latin America. However, there are 57% of respondents who are indifferent to one place or another and are only interested in the profitability of the project.
Only 10% say they would never invest in other types of tokenized assets, such as NFTs, cryptocurrencies or utility tokens. However, a resounding 82% would do so.
How much do you earn by investing in real estate tokenization?
There are many who invest in projects tokenized real estate due to the returns they offer compared to other financial products. Most respondents expect to obtain an annual average in the range of 5% to 10%.
Other motivations for investing in tokenized projects are diversification; the possibility of investing in the real estate market for little money, choosing where, when and in which property to do so; liquidity; the low risk and the possibility of being able to automatically reinvest the returns to generate compound interest. In fact, 93% of those surveyed usually reinvest the profits obtained.
Among the factors to improve, in general, respondents consider it crucial to address issues of transparency, regulation, education, and liquidity.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
