Stuck With Land Purchase, Not Able To Take Loan Against It, Unable To Sell It? Nandan Nilekani Shares Solution | Video

Nandan Nilekani, in a recent video tweet, emphasized the untapped potential of tokenizing land assets in India, noting that land constitutes 50% of the wealth owned by Indians but remains largely non-tradable. He explained that tokenization could transform these assets, enabling them to be used for trade or as collateral for loans.

Tokenized real estate refers to when a real-estate property or its cash flows are represented as a blockchain token. These tokens represent ownership or investment in the underlying real estate property, allowing fractional ownership and increased liquidity through trading on digital asset exchanges.

“50% of the assets owned by Indians are in the form of land, which is not tradable. You cannot sell it or take a loan against it. It is like an asset that is there, but you cannot do anything with it. We believe that tokenization of assets using proper land can unlock these things, where you can tokenize every piece of land and trade it easily,” stated Nilekani.

However, Nilekani pointed out that the success of land tokenization will depend on state governments improving their land registration, property tax systems, and titles.

“Land assets are a state subject. This will depend on each individual state implementing tokenization and improving the quality of their registration, property taxes, title system, and so on. As states realize the power of this, more states will tokenize. That will allow more people to offer land, enabling them to contemplate selling land or getting a loan against it, and potentially starting a business. This is another big unlock, which is the tokenization of land assets,” added Nilekani.