Real Estate Tokenization Models: Technology, Business and Legal Perspective

Real estate has traditionally been characterized by illiquidity, indivisibility and high transaction costs. REITs emerge as investment vehicles to finance real estate projects. Although it is essential, REITs often face asset concentration risks with their portfolios heavily weighted toward a specific type of property or geographic region. The tokenization asset based on blockchain address this issue by offering 24/7 global access, fractional and direct assets ownership, and potential to lower transaction costs. Current trends show both REITs and tokenization models are evolving and complementing each other, where organizations are racing to acquire benefits from these trends. The article takes examines the real estate tokenization issues in Indonesia and compares with other vibrant countries such as Singapore and Malaysia, and well-known tokenization startups. The article addresses tokenization models in technology, business and legal perspectives that cover regulatory and legal frameworks, market adoption and impact, technological infrastructure and interoperability, risks security and fraud prevention. The outcome is expected to assist investors and developers in developing tokenized real estate.