I do believe in tokenizing real estate as it gives us an immutable record of property transfers and we can also look at which areas are overinflated and which are undervalued.
I think what will hinder the processes is migrating records on to the blockchain, many people, estate agents and banks are not going to provide some open source platform with these records and if it's a voluntary submission I doubt very few homeowners will do it.
I think governments would support it if you can produce a security factor and a source of revenue for the countries coffers. Since this would make private sales easier and elimate 3rd parties I think institutes will feel too threatened.
Its a good idea but its a huge step and shift in thinking that people aren't ready for. Lets focus on getting digital assets working at scale before we think of augmenting physical with digital