by Andy
How Much Does It Cost to Tokenise a Real Estate Project?
A transparent breakdown of the three budget pillars behind a property tokenisation, prevailing Latin American market ranges, and why total financing costs comfortably undercut traditional intermediaries.
The very first question across any property developer's desk is blunt: what does it cost? Far from being a black box, a real estate tokenisation budget breaks down into three clear workstreams running in parallel.
- Technology infrastructure (Initial setup) Covers smart-contract engineering and third-party security audits, issuance platform configuration, the developer's management console, and a white-label investor portal. For mid-sized Latin American developments, this one-off setup investment typically ranges between USD 15,000 and USD 50,000,depending on the complexity of your payout waterfalls.
- Legal and regulatory engineering This layer ring-fences the deal: incorporating the financial trust or SPV, drafting offering documentation, regulatory compliance, and filing with the local regulator (such as Argentina's CNV). Depending on jurisdiction and offering scope, initial legal fees generally fall between USD 10,000 and USD 30,000.
- Ongoing maintenance and success fee Once live, a modest monthly retainer covers technical support, platform hosting, and operational administration. This is typically paired with a success fee tied directly to capital raised or project milestones—ensuring your technology partner's incentives sit squarely alongside your own.
The true cost-benefit equation Viewed in context, these outlays represent a fraction of conventional bank arrangement fees, notarial charges, and placement-agent commissions, which routinely siphon off 6% to 8% of total capital raised. On a USD 2 million development, a comprehensive USD 40,000 structuring budget equates to just 2%—keeping substantially more margin inside the project.
This content is provided for informational purposes only and does not constitute investment advice. All investments carry risk.