The digital real estate revolution is here
Blockchain is disrupting the business and bringing some unexpected benefits.
Property: The world’s biggest store of wealth. Its global value has reached $326.5 trillion in 2020, a record high, according to a recent Savills report. Real estate is now more valuable than all global equities and debt securities combined, and almost four times that of global GDP.
This may explain why real estate is still perceived as one of the best investments. Yet, barely 7% is accessible for minority investors and 3% of the world’s population has invested at least one time in real estate assets, as stated by Inmobiliare magazine.
Blockchain is definitely changing this and revolutionizing the industry. Tokenization is an emerging trend that promises to improve liquidity, and reduce costs and barriers for investors.
In fact, real estate experts at Moore Global — accounting, audit and advisory network based in London — predict that if even just 0.5% of the total global property market were tokenized in the next five years, it would become a $1.4 trillion market, making real estate investment easier, cheaper, more efficient and more accessible.
Apart from these benefits, Blockchain is also:
· Improving trust and transparency.
Since it operates through decentralized platforms, its record-keeping technology is difficult to tamper with. Data and documents can benefit from secure, shared databases, accessible to peers on the network, making them transparent and immutable. Fraud attempts are lessened.
· Making transactions more efficient and reducing costs.
Verification processes can go on for days, or even weeks. David Walker, a managing partner at Moore Cayman who works as an auditor specializing in digital assets, claims that the transparency and security of the technology also offer evident advantages from an auditor’s perspective.
Also, Blockchain can be used to cut intermediaries out of the real estate transaction process, from brokers to escrow companies, thereby cutting costs (and saving time!).
· Simplifying international transactions
Through Blockchain and fractional ownership, investors can make global transactions almost immediately and from their homes. They would only have to access a trading app to buy and sell tokenized properties.
One thing is clear: The only constant today, is change and real estate is not immune. The industry has been dominated by the wealthy and large corporations. Through Blockchain, more people will be able to access the market in a simple, reliable, and secure way.
At Realtok we are committed to building this future. More than a DAO, we are a community democratizing market access to real estate & crypto art projects, powered with Web 3.0. If you ever dreamed of stepping into real estate and crypto art, you are welcome to join!