Owning a property is a dream for every individual in this world. However, getting access to real estate is not easy due to the high costs and cumbersome processes involved. Tokenization aims to solve that problem by dividing an asset into different fractions promoting collective ownership.
Some of the popular types of real estate property that can be tokenized are
Commercial Real Estate tokenization- By following legally-compliant protocols and regulations, commercial property is tokenized by following the concept of audited fractionalization.
Residential Real Estate tokenization - Since apartment complexes and villas involve huge competition from investors, developers, financial institutions, and asset managers, tokenization helps interested people to own prime properties across the globe.
Trophy Real Estate tokenization - Funds can be raised quickly for different projects using an immutable ledger by liquidating the trophy asset. It will sustainably bring more liquidity.
Single Real Estate tokenization - Even an individual property can be tokenized. This will help in reducing the hefty liquidity premiums.
It ultimately results in faster buying and selling of properties. Split ownership helps in managing the risks together. There are no geographical barriers to tokenization as it allows access to a global portfolio of properties. Extra costs paid to brokers and agents are reduced significantly. Tokenization through blockchain ensures confidentiality in protecting user’s information and asset management.
Tokenization of different properties is the way forward for the Real Estate industry. Its image of being viewed as an illiquid asset would change rapidly courtesy of the power of Blockchain technology.