The digital transformation of the global financial markets has continued to make the world smaller. In today’s markets, investors can buy and sell stocks, currencies, and commodities of different countries from a single platform and without having to travel. Simply put, digitisation of financial markets has shrunk the entire world into the small smartphones that nearly everyone has access to.
Yet, there are still some markets that remain largely out of reach of some investors. For instance, if an investor wanted to acquire real estate property in Spain, most of the time they would have to travel there. That was accepted as one of the realities when making real estate investments, but a lot has been changing over the last few years.
Digitisation of Property Markets Is Gaining Traction
Several countries around the world already have digital registers of properties describing ownership, previous transfers, as well as geographical location.
This digital transformation has, in turn, helped create another marketplace, which now connects potential property buyers with sellers by digitally providing property information and their status. As such, there has been a rapid growth of online property acquisition platforms like one that provides potential investors with an opportunity to buy property in Murcia, Spain.
Such platforms have smoothed the property acquisition process in most countries but with technological advances like blockchain, things could get more interesting in the next few years.
Blockchain Disruption Is Tokenising Real Estate
Over the last few years, blockchain and cryptos have become the breakout markets of the current decade and they increasingly look like they could do far more in the coming years.
The blockchain is helping startups to create disruptive marketplaces for just about every industry. This has been made possible because of one of the blockchain’s most powerful features, the ability to tokenise assets. While a lot of focus has been directed towards already tradable assets like gold, silver, and oil, a new wind of disruption has seen players in the technology space introduce platforms that seek to disrupt real estate, the talent industry, digital marketing, and many others in a comparable way.
Blockchain Projects Are Targetting the Real Estate Market
One of the most interesting blockchain projects targeting the real estate market was launched this year by a company called Etherty. It is an integrated one-stop solution for property investors across the globe. It uses smart contracts and tokenisation technologies to provide a property trading platform that functions like a stock exchange.
Investors can buy and sell tokenised shares of several properties, sourced from across the world, as well as monitor market trends to gain insights on the most appropriate properties to invest in at a given time.
Etherty’s disruptive real estate trading platform is not one of a kind. It follows the same concept of ATLANT.io, another blockchain project that seeks to tokenise the property market. This platform allows investors and traders to invest, rent and trade real estate properties pooled together to make a well-diversified portfolio of assets spread across the world.
Therefore, with blockchain technology and tokenised real estate assets, investors do not have to travel to a country or location, like Murcia in Spain to invest in properties in those locations. Etherty and ATLANT.io, which are expanding rapidly will soon be able to cover properties from such locations thereby making it easy for investors to capitalise on markets that provide interesting growth opportunities.
The Future of Tokenised Real Estate
The real estate market has proved over the years to be one of the most complicated markets to invest in. Different governments have different regulations on property ownership. In addition, most properties are sold as whole entities, which means that a specific property could cost millions of dollars. This effectively locks out several potential real estate investors that cannot afford to invest huge sums of money on a whim. It also stands in the way of investors being able to diversify their investments across multiple properties.
However, with tokenisation, real estate investors could now invest in the property markets by buying tokens of different properties. And as demonstrated by both the Etherty and ATLANT.io disruptive platforms, investors can even trade in real estate assets, which improves liquidity in the market and opens doors for more investors to join.
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