The global real estate market is valued at a whopping $8.5 trillion in 2017. Experts estimate that this trend will continue to remain bullish as housing is one of the important components of human survival. However, the arrival of technology such as blockchain and cryptocurrency is opening up new avenues in the archaic real estate market.
Today, it is possible to market physical assets to a diverse and global audience using tokenization. Moreover, real estate tokenization makes it easier to sell large buildings, office spaces and homes by fragmenting ownership. This means that it is possible to sell one building to multiple investors without any hassle. Alternatively, this also makes it possible for individuals to invest in multiple projects and create vibrant portfolios. Finally, the documentation and record-keeping processes are secured using blockchain technology while smart-contracts help makes the transfers and transactions effortless.
In the real estate market a common tokenized assets offering consists of the following steps:
- The first step involves identifying the asset to sell. This can be office space, house or even a garage.
- Next, the credentials of the owner and the property will be evaluated. This is to check if there are no debts or other hurdles present. Alternatively, the property will be appraised for sale purposes.
- Now comes the process of digitizing the ownership to prepare it for transferring the details onto the blockchain.
- Simultaneously, the blockchain and cryptocurrency architecture will be developed and smart contracts will be programmed.
- Other regulations such as KYC and AML will be enforced. This is to protect the interests of both the investors and the seller.
- After all the evaluations are done, the token will be offered to investors in different phases.
- Once the sale of the tokens is complete, the same can be listed on security token exchanges to allow further trade of the asset tokens.
If you are searching for an accredited real estate token development company, look no further than Blockchain App Factory. They have extensive experience in this domain and have worked on several successful tokenization projects. Additionally, their large team features industry experts and talented developers who can guide you to launch an innovative real estate token for your project.