Real Estate Tokenization:
Investments in Real estate have the potential to grow exponentially in the future. Real estate and gold investments are immune to inflations. However, investing in real estate can be more profitable. Adopting the futuristic real estate tokenization method can help your investments have skyrocketing revenue.
Real estate is considered one of the most desired forms of investment, but has drawbacks in the traditional trading system.
The real estate investment or transaction process involves a lot of sophisticated paperwork to be done in order to complete the transaction or investment successfully.
But with blockchain technology, you can take your investment process to a whole new level by tokenizing your real estate asset, which enables you to carry out transitions in the digital space.
Blockchain technology has played a revolutionary part in transforming the complicated process of acquiring real estate property by tokenizing the real estate property virtually. Real estate tokenization allows you to represent your real estate property virtually on the blockchain network to attract buyers across the world.
Many construction business models have started adopting the real estate tokenization method to raise funds easily or to sell their real estate property quickly. Read the below-mentioned scopes and benefits of real estate tokenization to accelerate your real estate sales.
Real Estate Tokenization Scope
With numerous benefits blockchain technology offers the real estate industry, several real estate owners around the globe have taken their real estate property for sale with the help of the real estate tokenization process.
A 350 million dollar building in Kyiv represented 80% of the building ownership with 50,000 tokens and managed to set it at a price of 5,800 dollars per unit. The token holders were made eligible to receive rental incomes generated from the tokenized real estate property.
Another finest example is a building in Zurich which is worth 134 million dollars and was sold using the real estate tokenization process. This sale is the largest tokenized real estate sale ever recorded in the history of blockchain.
Benefits Of Real Estate Tokenization
Blockchain technology has been a game changer for many industries, and the real estate sector is no exception. Real estate tokenization has greatly enabled the real estate industry to explore new possibilities with the help of blockchain technology.
Blockchain technology is backing the real estate industry, paving the way for a futuristic mode of buying and selling real estate properties, thanks to real estate tokenization possibilities. New technological developments motivate people to adopt them and utilize the benefits of the technology, and no one wants to be left behind in the stone age.
Tokenizing real estate property not only enables a single person to own the whole property but also allows you to split ownership of the property among multiple people. This feature can be really useful for real estate owners when they decide to sell a high-value property. The highly valued real estate property can be divided and represented with multiple tokens and sold to different people.
When you are an entrepreneur and want to raise funds for the business, real estate tokenization can give your business venture a helping hand. During the ICO process, due to various reasons, it is not that easy to win the trust of the investor. At that time, you can back your token with real estate property as security can help your business win the investor’s confidence.
Real estate tokenization helps you to skip another disadvantage of the traditional system. The tokenizing process lets you skip the hectic paperwork required to buy or sell your real estate property. When all the conditions are determined in the smart contracts correctly, there is no room for error in the transactional process.
Another advantage of tokenizing your real estate property is that.
It enables the property owner with an automated rent collection process.
Automated rent receipt generation.
This process completely depends on the conditions.
Determined in the smart contracts before initiating the token purchase process.
Real estate tokenization eliminates another disadvantage of the traditional process of selling your real estate property. Tokenizing your real estate property will allow you to cut off the third parties getting involved in the selling process, and it also allows you to save the commission amount paid to the intermediaries.
With the help of real estate tokenization, you can increase the probability of selling your real estate property quickly by appealing to potential buyers across the globe. This helps you to invest in potentially growing real estate properties as an investor having no geographical boundaries.
Blockchain technology is transparency, security, and decentralized nature.
Which eliminates the possibility of fraudulent activities in the blockchain network.
Summing it up
Real estate tokenization gives you numerous advantages over the traditional transactional process. In addition, the tokenization process helps you to sell your property in the global market.
Having no geographical boundaries, or it enables you to convert your real estate property as security for your business.
With numerous real estate tokenization advantages.
Choose a perfect real estate tokenization company.
Grow your business into many folds.