T-REITs: A Regulatory Compliant Blockchain-based Framework for Tokenization of Real Estate Investment Trusts

Blockchain-based real estate tokenization enhances liquidity, transparency, and regulatory compliance in real estate investments. This paper presents T-REITs, a decentralized framework for real estate tokenization and REIT (Real Estate Investment Trust) formation, ensuring compliance with jurisdictional regulations through smart contract automation.T-REITs comprises modular smart contracts implemented using Hardhat. The Identity and Registry modules establish on-chain identity mapping for stakeholders and properties. The Compliance and Verification modules enforce investor eligibility, KYC/AML checks, and regulatory rules. The Token Module facilitates REIT token issuance and transfers, while the Fund Management Module automates rent collection, expense management, and dividend distribution.A web-based interface enables Fund Management Companies (FMCs) and investors to set up and tokenize REITs without requiring blockchain expertise. Smart contracts were rigorously tested using Hardhat, optimizing gas efficiency for secure transactions.By integrating decentralized identity management, compliance enforcement, and automated fund distribution, T-REITs provides a secure, transparent, and globally accessible alternative to traditional REITs, paving the way for efficient real estate investments.