The tokenization of illiquid assets is experiencing significant growth in the real estate investment field, and it is estimated to reach a value of $16 trillion by the year 2030, which would be equivalent to 10% of the global GDP, according to a report by Boston Consulting Group. Robin Decaux, CEO of Equito, a startup dedicated to this innovative form of investment, ensures that, although it is still in an early stage in Spain, its popularity “is constantly growing.”
This method allows small investors to participate in the real estate sector with minimal contributions starting from just 100 euros. Tokenization platforms seek properties for rent and offer investors an average annual return, democratizing a market that traditionally required much larger investments. Decaux emphasizes that this proposal is attractive to a broader audience, making it easier for people who could not previously invest in real estate to now have the opportunity to do so.
Tokenization transforms real estate ownership by dividing it into smaller fractions represented by digital tokens. By acquiring these tokens, investors can receive monthly benefits generated by rental income or the sale of the property, providing them with a constant income stream. However, the Equito CEO clarifies that what is actually tokenized are the income flows derived from the investment, not the physical properties themselves.
The business model focuses on breaking the barriers to entry in the real estate market. According to Decaux, “we locate, buy, and rent out the properties,” issuing digital participations in the form of tokens that can be acquired through an application. This modality is particularly attractive to younger generations: most investors are between 18 and 30 years old, a group that prefers technology and digital access to financial services through their smartphones.
Regulation is a fundamental aspect for the development of real estate tokenization in Spain. The purchase contracts of tokens are under the supervision of the National Securities Market Commission (CNMV), and the Securities Market Law recognizes values represented through blockchain technology, creating a legal framework that ensures the integrity of these transactions. This regulatory context establishes the foundations for sustainable and secure growth of tokenization in the real estate sector.
Referrer: MiMub in Spanish