What Are Real Estate Tokens?
Real estate tokens are digital units representing fractional ownership in a physical property. Each token gives you a proportional share of the property value and rental income.
How Tokenization Works
A platform identifies a pre-leased commercial space in Mumbai valued at Rs.15 crore. It is divided into 1,00,000 tokens at Rs.1,500 each. Investors buy tokens. The platform LLP holds the property as nominee on behalf of token holders. The corporate tenant pays monthly rent distributed to token holders daily. Token holders can sell on the marketplace when they want to exit.
Legal Structure in India
Operates under Indian Contract Act 1872 as a beneficial interest model. Platform LLP holds property as nominee. Token holders are beneficiaries. Similar to how mutual funds work.
Verify before investing: Is the LLP registered with MCA? Verify LLPIN at mca.gov.in. Is the property MahaRERA registered? Is there an active paying tenant?
Important: Real estate tokens are NOT SEBI regulated. They do not have the same protections as mutual funds or REITs.
How Returns Work
Rental income accrues daily from day 3 at EstateCoin. A Rs.1,500 token at 5.5% yield earns Rs.6.88 per month. NAV appreciation is reviewed periodically by an independent valuer.
Key Risks
Platform risk. Liquidity risk: instant sell at 2-3% below NAV or wait for marketplace buyer. Property value risk from economic cycles. Regulatory risk from future SEBI rules.
Read Also
- [Pre-Leased Commercial Property Investment India 2026](/blog/pre-leased-commercial-property-investment-india-2026) — why pre-leased is safer
- [How to Invest in Real Estate Without Buying Property](/blog/how-to-invest-in-real-estate-without-buying-property-india) — 4 options compared
- [Fractional Real Estate India — Complete Guide 2026](/blog/fractional-real-estate-india-guide) — the full picture
*Investment involves market risk. Real estate tokens are not SEBI regulated. Returns are not guaranteed.*
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