Tokenization of real estate opens new opportunities for small investors and makes real estate investments more efficient and cost effective for everyone.

$9.6 trillion

Real estate market size

The size of the professionally managed global real estate investment market increased $7.4 trillion in 2016 to $9.6 trillion in 2019.

71%

Small investors interested

71% of americans wish real estate investment was easier. 48% would be more likely to invest if technology made it easier.

29%

Interest rates

Property development firms face interest rates of up to 29% when financing via banking institutions as single source loan providers.

The problem

Real estate investments require high investment minimums, which prevent smaller investors from participating in the market. At the same time, property development companies face difficulties in finding financing.

Illiquid market

Real estate is an illiquid market, which makes it less palatable for investors in general. On top of that, inefficient property management adds unnecessary complexity for smaller investors.

  • High costs
  • Too complex

Not suitable for small investors

The current system wouldn’t handle the volumes small investors would bring in, and the marginal costs might even be higher than marginal revenue, leading to an economic loss.

  • Inefficient

Outdated data management

Data is often stored in silos, and registries are usually paper-based, making operations slow and costly and prone to errors and fraud.
Scaling this system to a large, global investor base wouldn’t work.

  • Anachronistic tech
  • Not scalable to meet current demand

The solution

Blockchains allow for tokenization of real estate on one shared, secure ledger. A property is represented by digital token [link to page] with certain rights and obligations that can be automatically enforced via smart contracts and easy to verify on a single ledger. This new architecture is automated, more transparent, cheaper, and faster. It tackles the issues of the old system, enabling a global, liquid real estate market.

Making life easier

Automation is achieved by smart contracts, which, for example, could collect renters’ payments automatically and distribute them to token holders. Using blockchains instead of the legacy financial system, transactions are faster and cheaper with no middlemen.

  • Fast
  • Lower costs
  • Automated

Transparent

Compared to data silos and paper documents, property management firms can accomplish higher operational efficiency with the increased transparency of a shared digital ledger.

  • Digitally secure

Open to anyone

Real estate companies benefit from better financing options from a global investor base, including smaller investors, while costs remain low.
Smaller investors gain access to real estate investments through tokenized fractional ownership.

  • Wider investor base

High liquidity

Another advantage of digital assets, here in tokenized real estate, is their high liquidity in secondary markets. This unprecedented liquidity may attract new investors that weren’t interested in real estate before.

  • Asset monetization

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