The market for tokenised real estate is highly dynamic
Referring to a current study by the Hamburg Commercial Bank (HCOB) and the Frankfurt School Blockchain Center (FSBC) of the Frankfurt School of Finance and Management, Josip Heit notes that the number of German companies that offer “tokenized real estate” ranks second behind the USA internationally.
There are currently 41 companies in 17 countries around the world that have tokenized properties. These are mainly in the United States of America (13) followed by Germany (6) and Switzerland (4). In general, Europe is way ahead of the rest of the world in this area, also in terms of the regulatory framework.
What is certain, however, is that some things, such as the introduction of digital land registers, will still take some time from a technical point of view. In principle, however, tokenization enables real estate to be denominated as small as desired. Corresponding Josip Heitit is known that the promised annual savings can be in a wide range of up to more than 20 percent, among other things through the elimination of costs for bureaucracy and business travel.
Smart contracts also eliminate costs in the possible range of twenty percent, in some countries these can be even higher. If you consider that blockchain technologies can be used through the comfort zone of your own home, the real estate industry inherits undreamt-of possibilities Josip Heit I am sure that the topics of blockchain and tokenization are more than promising, especially because of the great simplifications that speak for everyone involved and the high savings potential! Therefore, there are good future prospects for tokenized real estate.
As an investment instrument, the real estate token is comparable to participation in a closed real estate fund that invests in one or two properties.
Josip Heit explains: “Although the market for tokenized real estate is still in its infancy, the high dynamics, especially for providers of real estate funds, can become a serious challenge, because for investors, tokenized real estate can be associated with above-average returns and lower costs, which is especially true for those Investors who are open to relevant innovations should be of interest. Coupled with the divisibility of real estate and the resulting significantly larger group of potential investors, tokenized real estate can change this asset class noticeably in the long term. “
The advantages of blockchain technology for the real estate industry are downright gigantic in this context; In particular, the divisibility of real estate into small, tradable units now offers real estate a larger group of investors – which is why a revolution could currently be imminent that opens up completely different and above all new opportunities for the entire real estate market worldwide!
Josip Heit concludes: “The use of blockchain in the real estate industry has many advantages, especially in the real estate sector! From transferring ownership to negotiating prices, blockchain technology offers an easy way to securely process complex transactions. ”
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