Blockchain will reshape the real estate industry, asking the oldest and most valuable investment channel to change the rules of its own game. 

Moore Global, the global accounting, audit and advisory network published a report on the global tokenized real estate market. Despite a slow beginning, this market is predicted to reach $1.4 trillion even if only 0.5% of the total global property market gets tokenized in the next five years.

According to VIR, the global real estate market is still experiencing “a fever” though the world is still struggling with the pandemic. The prices of property have been soaring, especially in major markets such as America, Australia, Canada, Korea, etc., which brings a bright picture to this market during the last months of 2021 and creates momentum for 2022.

Real estate investment, a game dedicated to billionaires?

Andrew Carnegie, a famous billionaire, said that 90% of millionaires got their wealth by investing in real estate. Apparently, this market is not for everyone.

According to the Census Bureau, even in America, the most exciting real estate market of the world, only 63% of the population owns real estate, including both investment and residential properties. This number is even lower in other markets.

A few barriers that prevent investors from joining this market are huge initial investment into pricey real estate products and difficulties in-process and liquidity. Meanwhile, as the famous aphorism says "The rich get richer”, international investors with abundant capital can easily access any property in the world and reclaim investment profits thanks to the “heat xã” of the market. At the same time, small local investors and those with actual real estate needs are blocked by geography and pressures from corporations. The key for these issues lies in the development of blockchain technology. 

Blockchain to redefine the concept of real estate investment

Describing the impacts of blockchain on real estate, Nick Clare, Head of Project Management at JLL UK shared that: “Blockchain will help you create, authenticate and audit contracts in real-time, across the world and without intervention from a middle man; payment can only be taken as long as the instructions are fulfilled, providing complete transparency to all parties and reducing the likelihood of payment disputes”.

Smarter, faster and more economical are the prerequisites that the real estate industry is aiming for. Among the leading names in creating a new playground for investors, Realbox is highly noticeable. 

Realbox (REB) divides a real estate asset, tokenizing it to match each investment value for partial or full trading.

Thanks to tokenization, real estate retail investors can easily enter the market with a small investment of only a few thousand dollars, or even a few hundred. Besides, investors with strong capital will also have the opportunity to diversify their investment portfolio across multiple assets in any region. Investors can trade, rent or exchange any type of real estate, as a whole or in parts, depending on their investment preferences. With a great foundation, stable transactions and staking mechanism, REB is holding various chances to increase its value, bringing interests for both real estate and tokens.

“Thanks to VR technology, Metaverse Realbox City will remove all geographical barriers, allowing users to witness and experience the product in a virtual environment, from anywhere. The AI algorithm which provides smart investment monitoring will also help investors manage and minimize the risks of property investments,” said Dr. Alex Pham, CEO of Realbox.  

Realbox City is integrated with VR technology and AI algorithm, helping investors minimize risks with asset investment management services.

Mr. Sohail Hassan, Managing Partner of MarketSpace Capital said that blockchain would unlock liquidity and become a new trend in the real estate sector.

According to Market Data Forecasts, the global tokenization market size will grow from $1.9 billion in 2020 to $4.8 billion in 2025, fueling the trillion dollar investment properties. The real estate industry needs a breakthrough, and blockchain platforms such as Realbox will be a trending solution to such a riddle.