Real Estate Tokenization – Is it the future of Real Estate

• Shared secure database

For leasing, purchase, and sale transactions, the real estate industry has always relied on shared databases known as MLS or Multiple Listing Services. These databases are centralized and are susceptible to hacks. This is where tokenization of real estate will aid in the creation of a shared yet secure database on blockchain.

A blockchain-based MLS would make it possible for real estate data to be distributed across a peer-to-peer network. Thus, the brokers will have more control over their data in a trustless manner. This would also provide real estate seekers with clear details about property location, comparable sale or rental rates, capital values, ownership history, and title clarity.

• Liquidity Booster

Real estate is generally considered to be an illiquid market. That’s because the market will not always have buyers and sellers available. Tokenization of real estate acts as a liquidity booster as instead of selling the equity to the bank, the real estate owner can release the equity in the form of tokens. These tokens are then released onto a market where they are traded among a pool of investors. Overcoming liquidity challenges is a big plus as it increases the value of any real estate or asset.

• Digital identifies to enhance due diligence and financial evaluation

At present, a significant amount of time is spent on due diligence and financial evaluation of real estate. This is because all the identity information and ownership details are often stored in physical documents which are difficult to procure every time with flexibility. The asset tokenization services can create digital identities for real estate. These digital identities consolidate real estate information like availability, financial and legal status, ownership, and performance metrics in digital form on the blockchain. All this data can be accessed anywhere for evaluation which expedites the lease or sales process.

• New Capital Channels

Real estate tokenization enhances investor access, especially for small-scale investors. Large-scale properties have always been out of reach for small-scale investors because they are very expensive. However, tokenization of real estate enables fractionalization of a property where even smaller investors can own a fraction of the property by buying the tokens.

• Efficient cash flow management

Using a smart contract real estate can address many challenges with cash flow management. A traditional lease contract can be morphed into a smart contract which enables transparency in lease terms and transactions. The smart contract automates payments to dealers, managers, owners, and stakeholders in real-time.

• Atlant.io

It enables to have property ownership either partial or full anywhere in the world. Atlanta provides its users with a decentralized exchange on which tokenized properties can be traded. This kind of real estate tokenization allows users to buy a share in any property using ATL tokens. As the transactions on Atlant.io are peer-to-peer, no intermediary fees are required to be paid by property traders.

• Imbrex

Imbrex is akin to a global Multiple Listing Service (MLS) and has been developed on the Ethereum blockchain where it functions as a single destination for global real estate. It brings its users free of third-party advertising where buyers can confidentially search real-estate listings and connect with agents at no cost. The only cost incurred is the network fees. At present Imbrex has over 2,200 project listings locally. Imbrex shares all the data on Interplanetary File System (IPFS), a peer-to-peer distribution protocol.

• LABS

The LABS is a very popular real estate tokenization platform that uses the G.A.I.N.S. paradigm to create utility tokens. With its asset tokenization services, it makes property possession available for as low as 100 USDT.