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  • Tokenization of the REAL ESTATE MARKET and its evolution in 8 definitions

Tokenization of the REAL ESTATE MARKET and its evolution in 8 definitions

M ULTIPROPERTY or Fractional ownership of real estate and portfolio diversification.

The Blockchain significantly simplifies the real estate buying and selling processes, allowing for unique opportunities to create an efficient fractional ownership market. For example, an average home in Los Angeles costs about $810,000, which is too expensive for the vast majority of middle-class demographics to afford. When tokenized, ownership can be owned by a fraction of an arbitrary number of people, each earning a fair share of the rental earnings proportionate to the share of the total token owned. This in turn allows for portfolio diversification opportunities similar to those provided by the securitization process, but at a fraction of the cost.

Benefits of record management and database maintenance cost savings. Essentially a decentralized record keeping system, the DLT, by its nature, realizes a number of significant efficiencies in the area of records management, thus reducing the burden of bureaucratic procedures and associated costs.
Instant point-to-point settlement of transactions. DLT-based platforms allow for direct end-to-end settlement of transactions, greatly reducing the associated costs by reducing the number of intermediaries involved.

General reduction of market frictions and involved intermediaries. Deep integration of DLT infrastructure into the real estate industry will also significantly reduce the overall overhead that is now generated by the large number of intermediaries that are needed to mitigate market frictions (lawyers, realtors, notaries, registry officers, etc.). ).

Forbes estimates suggest that, at a minimum, the cost savings of integrating the blockchain into real estate on the aforementioned dimensions will amount to 1–2% of the value-added of the business. Furthermore, fraud risks will significantly decrease because blockchain-based platforms have immense potential in preventing data spoofing by simplifying the proprietary due diligence process. Nowadays, countries like USA, Netherlands, Sweden, Switzerland, United Kingdom, UAE, Georgia, Greece have already implemented the blockchain in their properties.

The benefits in short;

= Transparência do fluxo de trabalho
= Propriedade fracionada / securitização
= Número minimizado de mediadores
= Diversificação de portfólio
= Acesso à liquidez global
= Resiliência à fraude
= Reduzindo a carga de procedimentos burocráticos
= Transações imobiliárias internacionais rápidas

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