How Does Tokenizing Real Estate Impact the Way Properties Are Valued and Traded Today?
The real estate sector has long relied on traditional valuation methods such as comparable sales, income capitalization, and cost approaches. While effective, these methods often involve lengthy processes, subjective assessments, and limited access to market data. However, the advent of tokenized real estate is redefining how properties are valued, traded, and perceived. By leveraging blockchain technology, tokenization converts physical property assets into digital tokens, enabling fractional ownership, enhanced liquidity, and real-time market data. This innovation is not just transforming investment strategies—it is fundamentally reshaping property valuation. In this article, we explore how tokenized real estate is changing the way we value properties, its benefits, challenges, and the long-term implications for investors, developers, and the broader real estate market.