Blockchain Framework for Shared Real Estate Ownership Certification Using Fractional NFTs

Abstract

Traditional real estate markets are often dominated by institutional investors, which may limit access for small investors due to high entry costs and limited opportunities for fractional participation. Such market dynamics create slow, expensive, and inflexible transaction processes that limit liquidity and prevent broader participation in property ownership. To address these challenges, we propose a blockchain-based framework using fractional non-fungible tokens (F-NFTs) to digitally certify and manage shared real estate ownership. Our approach involves improvements to the ERC-721 token standard to support fractional ownership, development of smart contract algorithms for property registration and transfer, implementation of a prototype, and deployment on the Ethereum Sepolia testnet. The performance evaluation reveals that the complete certification process costs around $47.16 USD and can be completed in roughly 264 seconds, which reflects notable enhancements in transaction efficiency compared to traditional systems. By enabling costeffective and transparent property certification, this framework enhances transparency, democratizes property investment, and broadens market accessibility.