Represent a token as an NFT or an asset on the blockchain. An NFT is a unique token that is distinguishable from every other token on a blockchain, making it suitable for real estate as each property is different. This also represents ownership or transfer of real estate.
One compelling use case for real estate tokenization is fractionalization, which enables fractional ownership of a property. To enable fractionalization, one or more real estate NFTs need to be added to a vault, creating a collection of real estate properties. Only a trusted custodian can deposit or withdraw a property.
Fungible tokens are now issued and indistinguishable from each other. Individual tokens can own fungible tokens which represent a specific percentage of ownership of the property. Owning all fungible tokens is equivalent to owning the entire property.
Investors can invest to own a small percentage of the real estate collection. This allows investors to unlock the potential of real estate in a novel manner, while the owner has a larger participation for investment, resulting in better liquidity.
Using Spydra's workflow builder, set up business rules and logic, defining returns on investment, payout, pay-in, and other factors at scheduled events or times.
The innovative approach of digitizing property, fractionalizing it, and issuing tokens has made investing in real estate more accessible and divisible.
Individual residential units like apartments, houses, and condominiums. Investors can own a share of a residential property, potentially earning returns from both property value appreciation and rental income.
Commercial real estate can involve office buildings, retail spaces, or industrial properties. These investments often yield higher returns due to the scale and rental incomes from businesses
Tokens represent shares in rental properties. Investors earn returns from the rental income generated by these properties, which could include single-family homes, multi-unit apartments, or even large residential complexes.
Similar to rental homes, but these properties are often in tourist-centric locations and can be rented out on a short-term basis, like through platforms such as Airbnb
Tokenization can be used to raise capital for new real estate development projects. Investors buy tokens representing a stake in the future development, potentially reaping rewards as the project completes and gains value
Various participants play distinct roles in the ecosystem. Each participant stands to gain specific benefits from utilizing blockchain technology
Real estate tokenization is the process of representing ownership of real estate assets as digital tokens on a blockchain. These tokens can then be bought, sold, or traded, allowing for fractional ownership and increased liquidity in real estate investments.
Blockchain technology ensures transparency in real estate transactions by providing a secure and immutable ledger. This reduces the risk of fraud and ensures that all transactions are recorded transparently, providing clarity for all parties involved.
Yes, various types of real estate assets can be tokenized, including residential properties such as apartments and houses, commercial real estate like office buildings and retail spaces, rental homes, vacation homes, and even development projects.
Various types of properties can be tokenized, including residential properties such as apartments and houses, commercial real estate such as office buildings and retail spaces, rental homes, vacation homes, and even development projects seeking capital investment.
Real estate tokenization utilizes blockchain technology, which ensures the immutability and transparency of transactions. This reduces the risk of fraud and provides a secure ledger for recording ownership and transactions.
Returns on investment in real estate tokenization can be managed through business rules and logic set up using platforms like Spydra's workflow builder. These rules define factors such as returns, payouts, and pay-ins at scheduled events or times, ensuring transparency and efficiency in the investment process.
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