Real estate tokenization: Own premium properties for less

Investing in real estate located at premium locations is out of reach for most people, given the high upfront costs.

- Shipra Singh

But what if it could be done without buying the entire unit and with as little as ₹10,000? That's the promise of real estate tokenization.

It is the process of dividing a property into digital tokens on an online platform, each representing fractional ownership. This allows investors to buy small portions of highvalue properties through these tokens, making real estate investment more affordable and accessible.

"It can be as accessible as a mutual fund," Avinash Rao, founder of Alt DRX, highlighted at the Mint Money Festival, saying real estate need not be a hyperlocal asset class. He argued that the scale of opportunity is significant.

"Around 300,000 homes are sold each year in India's primary real estate market alone, representing more than $200 billion in value. Yet, only a fraction of investors actively participates because of high entry costs and illiquidity.'