Tokenization of Real Estate: Developing Recommendations for Issuance of Digital Financial Assets for the Developer New Life Group of Companies

The real estate market is one of the most fundamental and conservative sectors of the economy, but with the invention of blockchain technology and the resulting emergence of innovative financial instruments, in particular CFAs, the prospects for this market appear before developers and investors in a new image. Tokenization in real estate involves the conversion of property rights into digital tokens that enable investors to fractionally own assets and trade on blockchain platforms without intermediaries. The emergence of digital assets is aimed at solving such problems as low liquidity, high investment barriers and, most importantly, the lack of the ability to independently issue monetary claims by market participants, except for specialized financial institutions. With the emergence of such an innovative financial instrument as a CFA, even small private businesses have been allowed to issue digital rights to pay monetary claims tied to their business products, offering retail investors a low entry threshold for investment and ensuring liquidity of their own funds. This project work investigates the process of real estate tokenization in the form of digital financial asset (DFA) issuance for New Life Development Group. The aim of the research is to develop a comprehensive solution for the issuance of DFAs, including the selection of the optimal property for tokenization, roadmapping, risk management, and the creation of a traditional construction model and an innovative one based on it to evaluate the economic efficiency of DFAs. The work uses both theoretical and practical methods, including Hierarchy Analysis Method (HAM), expert interview, road mapping, and financial modeling. Financial performance is evaluated by considering the concepts of WACC, CAPM, etc. The practical significance of the work lies in creating for New Life Group of Companies a unique project set of solutions for future issuance, taking into account the company's strategy and available set of assets, for the issuance of CFAs, as well as in justifying the feasibility of the project and in forming a comprehensive summary of information on tokenization for the company's internal stakeholders.