This article examines how shifting geopolitical and economic conditions drive renewed interest in real estate as a resilient asset class. It uncovers how Wealth management trends in real estate are evolving globally by comparing traditional REITs to fractionalised ownership models over the next 12 months.

Few asset classes evoke as strong a sense of permanence as real estate. From the centuries-old chateaus of Europe to Manhattan’s skyscrapers, property has long symbolised stability and tangible worth. Yet, in the wake of 2024’s turbulence marked by geopolitical tensions, inflationary undertones, and evolving regulatory frameworks, real estate is being reconsidered as a store of value and an adaptable, technology-enabled instrument in Real Estate in Wealth Management strategies.

Where once only the wealthiest institutions or individuals could easily invest in prime global properties, the real estate landscape is changing. Technology, particularly tokenisation and fractionalisation, is opening doors and lowering thresholds. At the same time, macro-level shifts—from pandemic disruptions to the reconfiguration of trade alliances—are prompting investors to re-examine the role of real estate as both a hedge and a strategic lever. What emerges from these crosscurrents is a renaissance in which the old-world appeal of bricks and mortar meets the new-world fluidity of digital finance.

1. Economic and political undercurrents: Real estate in transition
   The past few years have tested the resilience of nearly every investment category. Equities have swung widely, fixed income's safety net has frayed amid interest rate hikes, and geopolitical tremors—from supply chain re-routings to energy supply insecurities—have unsettled the status quo. Against this backdrop, real estate's tangible nature and historically inflation-resistant characteristics have renewed its allure. According to multiple industry outlooks, including the 2024 U.S. Wealth Management Outlook, alternatives, such as property, are stepping up to offer ballast in choppy markets.

   Property rents and values often track higher when inflation runs hot, helping maintain purchasing power. This attribute appeals to wealth managers seeking stable returns for clients who balk at market volatility. At the same time, as global regulations around digital assets clarify—evidenced by legislative moves like the U.S. FIT21 Act —advisors can blend traditional property holdings within emerging financial technologies ensuring Wealth Management and Real Estate solutions adapt to the world’s shifting economic and political contours.

2. Tokenisation and fractionalisation: Lowering the drawbridge
   Historically, real estate investments demanded substantial capital and long-term commitments. As noted by McKinsey’s insights on scaling tokenised financial assets, tokenisation has changed this equation. By converting property interests into digital tokens on a blockchain, these investments can be sliced into smaller fractions, allowing a wider pool of investors to access commercial buildings, luxury apartments, or infrastructure projects once out of reach. However, regulatory ambiguity and cybersecurity vulnerabilities remain significant barriers to widespread adoption. Many jurisdictions have yet to formalise clear guidelines for tokenised securities, leaving compliance obligations fragmented and uncertain. Additionally, robust digital safeguards must be in place to mitigate hacking risks, ensuring investor confidence in these evolving platforms.

   Case in point. Consider a high-value office tower in Tokyo. Previously, only large institutions could buy in. A wealth manager can now offer clients fractional tokens representing stakes in that tower. These tokens can be traded more flexibly, delivering liquidity to a once-static market. Franklin Templeton’s foray into blockchain-backed funds and platforms like Securitize are early markers of this shift. The result? More granular control, enhanced diversification, and the potential for global property exposure, all at entry points that align with an investor’s profile. This pivot reflects Wealth management trends in real estate, where personalising portfolios and improving accessibility are paramount.
    
3. REITs vs. fractionalisation: Old guard meets new wave
   Real Estate Investment Trusts (REITs) revolutionised property investment by letting investors buy shares in a portfolio of properties. They offered liquidity, professional management, and often attractive dividend yields. Yet, REITs have limitations: their performance can correlate closely with equity markets, and investors have limited influence over property selection. In an era where clients crave customisation and thematic exposure—such as focusing solely on sustainable developments or niche sectors like data centers—REITs can feel blunt.

   Fractionalisation, by contrast, provides surgical precision. Advisors can target specific properties or regions, curating portfolios that resonate with investors' values and risk tolerance. As generative AI and advanced analytics become mainstream in wealth management, advisors can use these tools to forecast rental growth, stress-test scenarios, and fine-tune allocations. The emergence of REIT alternatives for wealth management does not signal the end of REITs. Still, it does push the industry to rethink how best to blend traditional structures with cutting-edge digital models. This evolving toolkit embodies the convergence of Banking and Real Estate Investments, where product innovation meets regulatory maturity, ushering in more investor-centric solutions.

4. The coexistence opportunity: REITs and fractionalisation
   Though the debate often pits REITs against fractionalisation as competing models, they can, in fact, complement each other in a holistic real estate strategy. As the Economic Times highlights, fractional ownership platforms allow investors to safely explore niche markets—provided they conduct thorough due diligence—while REITs continue to offer broad-based exposure and established liquidity. By combining both approaches, wealth managers can tailor solutions to individual risk profiles and investment goals, ensuring that time-tested models and emerging digital structures coexist to serve a diverse set of client needs.

5. Global horizons: Emerging markets take center stage
   While prime real estate in New York or London remains coveted, emerging markets are becoming hotspots for property investment. Rapid urbanisation in Asia's megacities, infrastructure booms in parts of the Middle East, and growth corridors in Latin America offer fertile ground. The World Economic Forum notes increasing regulatory clarity and sophistication in handling digital assets worldwide, suggesting that tokenisation is open to more than just developed markets.

   This cross-border agility underscores why Real Estate in Wealth Management is evolving from a locally anchored practice into a globally orchestrated venture. As alternative assets permeate mainstream portfolios, clients gain broader choices, and advisors become orchestrators of opportunity rather than gatekeepers of scarcity.

​​​​Conclusion: Strategic ways forward
Where does this confluence of trends lead us?

As Maveric’s Wealth Management 2024 Report, “Redefining Financial Advisor,” highlights, integrating tokenised real estate into broader asset allocations can provide wealth managers with a more balanced and resilient portfolio. However, they must refine their capabilities: conducting due diligence on fractional platforms, understanding local regulations, and leveraging analytics to guide property selection. Yet, these innovations also bring real concerns. Regulatory frameworks may lag behind, creating uncertainties around compliance and investor protections. Additionally, fractionalised assets can still face liquidity constraints, and the reliance on digital platforms increases cybersecurity risks—factors that warrant ongoing vigilance even as tokenised real estate expands opportunities. The melding of technology and property know-how will set tomorrow’s leaders apart, shaping how Banking and Real Estate Investments evolve.

For clients, the future holds greater control and transparency. Instead of a one-size-fits-all approach, investors might hold fractional interests in multiple markets—an ESG-focused commercial property here, a data-center asset there—composing a personalised tapestry of real estate exposures. Over the next year, as tokenised deals proliferate and AI-driven insights refine risk-reward calculations, it will be worth watching if these innovations offer what mutual funds did for equities: broad-based participation, improved liquidity, and embedded flexibility. In this renaissance, Wealth management trends in real estate suggest that property investments can shift from static cornerstones to dynamic building blocks, blending proven virtues with new ease of access.