Asset Tokenization in Real Estate: Theoretical Perspectives and Empirical Approaches

Asset tokenization is a new trend in the real estate industry, which has attracted significant attention from investors, developers, and regulators. The process of asset tokenization involves converting ownership of real estate assets into digital tokens, which can then be traded on blockchain-based platforms. This chapter provides an overview of recent developments in asset tokenization in the real estate industry and examines the empirical approaches used to assess its potential benefits and risks. The chapter presents a comprehensive review of the literature and identifies several empirical studies that analyze the impact of asset tokenization on real estate markets, investment behavior, and financial stability. The results of these studies suggest that asset tokenization has the potential to increase market liquidity, reduce transaction costs, and enhance investment diversification. However, the chapter also highlights some of the challenges and risks associated with asset tokenization, including regulatory uncertainty, cybersecurity threats, and the potential for market manipulation. Overall, the chapter provides valuable insights into the growing field of asset tokenization and its potential implications for the real estate industry.