This article is informational only and not investment advice.

Real estate is the world’s largest asset class, worth an estimated $393.3 trillion at the end of 2024—bigger than global equities and debt combined. That sheer scale is why there are so many ways to participate, from buying a single flat to owning a slice of an institutional portfolio. Here’s a clear, no-fluff tour of the main options, plus how tokenization is changing access and liquidity. (Savills Impact, 2024).

1) Direct ownership (buy-to-let, short-stay, development)

How it works: you buy a property, collect rent or resell at a higher price

Strengths: full control, direct use of leverage, potential tax benefits depending on jurisdiction.

Trade-offs: concentration risk, illiquidity, time-intensive operations, higher entry ticket.

Good fit for: hands-on investors seeking control and willing to manage (or hire) operations.

2) REITs (publicly traded real estate companies)

How it works: you buy shares in companies that own/operate income-producing real estate. By U.S. rules, REITs must distribute at least 90% of taxable income as dividends, which is why they’re known for yield. Public REITs trade on exchanges, offering daily liquidity. (IRS, 2025)

Trade-offs: equity-market volatility; sector and interest-rate sensitivity.

Good fit for: investors who want diversified property exposure without managing buildings.

3) Private real estate funds & syndications

How it works: you invest in a managed vehicle (closed-end fund, club deal, SPV) that buys/sells assets on a multi-year plan.

Strengths: specialist teams, scale, targeted strategies (e.g., value-add hospitality)

Trade-offs: higher minimums, multi-year lockups, performance dispersion.

Good fit for: investors comfortable with illiquidity seeking manager skill.

4) Real estate crowdfunding (EU & beyond)

How it works: online platforms pool smaller tickets into projects or portfolios. In the EU, the European Crowdfunding Service Providers Regulation (ECSPR) harmonizes platform rules and passporting across member states, improving cross-border access and investor protections. (European Comssion, 2025)

Trade-offs: platform risk, due-diligence burden, liquidity varies by platform/design.

Good fit for: smaller tickets, thematic allocations, or testing the waters.

5) Real-estate debt (notes, private credit)

How it works: you fund loans secured by property (senior, mezzanine, bridge).

Strengths: cash yield, collateral coverage, shorter durations than equity.

Trade-offs: downside is capped at par; underwriting and default risk matter.

Good fit for: yield-seekers who prefer being higher in the capital stack.

6) Fractional co-ownership (SPVs/shares)

How it works: multiple investors buy shares in a company that owns a specific asset.

Strengths: lower minimums for trophy or income assets; governance can be tailored.

Trade-offs: secondary liquidity is limited unless a matching market exists; governance details matter.

Good fit for: targeted, long-term exposure to specific assets.

7) Tokenized real estate (what’s new)

What it is: converting ownership or economic rights in property into digital tokens on a programmable ledger (blockchain).

The promise: fractional access, faster settlement, transparent cap tables and—if designed appropriately—improved secondary liquidity.

The World Economic Forum highlights transparency, efficiency and accessibility as core differentiators of tokenization across financial markets.

Why this is getting real (especially in Europe)

• Market infrastructure is maturing. The EU’s DLT Pilot Regime (in force since March 23, 2023) lets authorized operators issue, trade and settle tokenized financial instruments on DLT with targeted exemptions—i.e., a sandbox for regulated tokenized securities. Esma+1

• Crypto-asset rules are live. MiCA (Markets in Crypto-Assets) became applicable in phases from June 30, 2024, with remaining measures rolling into late 2024/2025—bringing EU-wide authorization and passporting for many crypto-asset service providers (note: tokenized securities remain under MiFID II/DLT Pilot). K&L Gates+2Norton Rose Fulbright+2

  
  

• Institutions are piloting at scale. From tokenized money market funds (e.g., Franklin Templeton’s on-chain fund in the EU) to mega-developers tokenizing real estate (e.g., DAMAC’s $1B Middle East program), the momentum is now mainstream. Cinco Días+1

How big could tokenization get?

Major analyses see a multi-trillion-dollar runway. Citi’s GPS research projects up to $4T in tokenized digital securities by 2030, with tokenization singled out as a likely “killer use case.” Boston Consulting Group has likewise mapped a double-digit-trillion opportunity as rails and regulation converge. (Citi, 2025)

Where tokenization meets coliving & hospitality

For multi-asset, service-heavy models like coliving and boutique hospitality, tokenization can open access (smaller tickets), align communities (programmable perks/governance), and support secondary liquidity via compliant DLT venues—without changing the real-world fundamentals: occupancy, RevPAR, margins, and operator quality. That’s the lens behind Circles House exploring a tokenized structure under EU rules.

Circles House Andorra is the first location Circles is tokenizing—opening the door for aligned members and investors to take part in the project. Our aim is to bring together people who share our values of entrepreneurship, community, and a new way of living for the modern founder. Participation, where permitted and subject to applicable regulations, is designed to align incentives between residents, operators, and backers in a transparent, future-ready model.

This article is for informational purposes only and does not constitute investment, legal, accounting, or tax advice. Nothing here is an offer, solicitation, recommendation, or endorsement of any investment or strategy. Always do your own research and consult qualified professionals. Investing—especially in private, illiquid, or tokenized assets—can result in loss of capital.