Why Real Estate Investors Should Tokenize Their Assets To Access Liquidity and Align Interests?

The worldwide real estate market is dominated by the REIT (Real Estate Investment Trust) business. The global REIT market had a total market capitalization of approximately $1.6 trillion as of 2021, according to the National Association of Real Estate Investment Trusts (NAREIT). This comprises both publicly traded REITs, which are listed on stock exchanges and may be purchased and sold in the same way as stocks, and private REITs, which are not listed on stock markets and are only available to accredited investors. The REIT market is a vital source of funding for real estate projects, allowing investors to gain access to a wide range of real estate assets such as office buildings, shopping complexes, residences, and hotels.

However, some potential problems with REITs (Real Estate Investment Trusts) as perceived by investors may include:

1. Lack of liquidity: REITs are often considered illiquid investments, meaning it can be difficult for investors to sell their shares in a REIT on short notice. This can be a problem for investors who need to access their funds quickly.
2. High fees: REITs often come with high management fees and other costs, which can eat into investors’ returns.
3. Limited diversification: REITs are…