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Investment in tokenised real estate captures the interest of millennials

Investment in tokenised real estate captures the interest of millennials
Round-table debate with: CEO of Rental; Head of Crypto Solutions, Virtual Assets & Blockchain of KPMG; and Head of Tokenization of Deloitte.

The convergence between crypto and traditional asset classes, including fiat currencies, equities, government bonds, and real estate, is experiencing an unprecedented growth. Blockchains are becoming the backend infrastructure for every asset class with use cases beyond our imagination in the future.

The level of crypto adoption today is equivalent to internet adoption in 2000 when the number of internet users amounted to 361 million or 5.91% of the world population at the time. The countries with the highest percentage of crypto ownership tend to have a high internet and banking penetration rate. Today, holders of tokenized assets account for a little more than 10% of the estimated 431 million crypto owners, or roughly 47 million people

Tokenization couldn't be possible until the emergence of the Bitcoin blockchain and hereafter Ethereum introducing a global computing platform for smart contracts that led to a cambrian explosion of different variations of blockchains and distributed ledger technologies. The most conservative estimates point out that the market value for tokenized assets will be of $3.5 trillion by 2030.

In this context Reental revealed the first 'Report on the profile of investors in tokenised real estate'. Through a survey of more than 1,000 investors from over 70 countries, the study shows that Spaniards account for 82% of investors, followed by those from Latin America (12%) and the rest of Europe (3.9%). Argentines stand out among Latin American investors, motivated by high inflation and the economic situation in their country.

By generations, millennials (born between 1981 and 1993) lead the investment with 38%, followed by Generation Z (1994-2010) with 27%, and Generation X (1969-1980) with 25%. Baby boomers (1949-1968) make up the remaining 10%. In terms of gender, 85% of investors are male and 15% are female.

The majority of investors (79%) invest on a recurring basis in tokenised real estate and other financial products. Six percent had not invested before learning about real estate tokenisation. Reental reports that 92% of its users reinvest in this type of assets. The majority invest between 100 and 10,000 euros, while 22.4% invest between 10,000 and 50,000 euros, and only 5% invest more than 50,000 euros.

Residential, the star of tokenised investments

Residential properties are the main choice of investors, but also gaining popularity are coliving, coworking, student and senior residences, hotels, data centres, offices, retail, and industrial and logistics. In addition, 75% of respondents would consider investing in other non-real estate tokenised assets.

As for the future, security is a key concern among investors. Most believe it is crucial to "educate" about tokenisation finance and improve the user experience. Carla Castelló, COO of Reental, highlights the advantages of tokenisation: "Elimination of intermediaries, absolute transparency in transactions, ownership of funds and tokens, elimination of geographical barriers and the possibility of investing from as little as 100 euros". Reental is convinced that "tokenisation is here to stay" and anticipates a tokenised economy in the coming years.

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