Real Estate Tokenization in Germany: Market Analysis and Concept of a Regulatory and Technical Solution
Robert Henker, Daniel Atzberger, Willy Scheibel, Jürgen Döllner · 2023
Real estate is the largest asset class and is equally popular with professional and retail investors. However, this asset class has the disadvantage that it is very illiquid, and investments have a high entry barrier in terms of equity. The adoption of the Electronic Securities Act in 2021 by the German Bundestag has created the legal framework for tokenizing real estate assets and their management using digital ledger technology in Germany. In this paper we describe a business concept for managing ownership and business transactions for real estate in Germany using blockchain technology. Besides its possibilities, we present a market analysis that comprises existing approaches and discusses legal limitations specific to the country.