Digital revolution has been impacting several industries around the world. Along with this, the blockchain technology is currently making waves, particularly in real estate industry. Through the help of tokenization, it increases the liquidity of real estate where the tokens represent a share of an underlying asset that can be sold to the investors.
According to a report in the U.S and Europe market using property tokenization, the global real estate investment market grew from $7.4 trillion in 2016 to $8.5 trillion in 2017. Through this data, it is already predicted that in the year 2025 that the global real estate market will generate a revenue of $4.2 billion.
Blockchain based real estate transactions is becoming a game-changer in the industry since it provides transparency for the investors. As real estate is a less liquid asset class with high barriers to entry, property tokenization provides an enormous value proposition.
Liquidity is the main aim of tokenizing real estate which opens new doors for the investors, owners and developers. Since there is a rise in the demand of digital investments, investors will be able to buy tokens directly from the issuer or via digital exchanges. Through this technology, all the transactions in buying and selling the properties will be cheaper, faster, and less bureaucratic along with the financial inclusion of a broader investor base in the real estate market.
