Increased Liquidity:
Tokenization of real estate contracts allows for fractional ownership, meaning that investors can buy a small portion of a property rather than needing to invest the full amount. This can increase liquidity in the real estate market and make it easier for individuals to invest in properties. Also, multiple different currencies can be used which adds to the liquidity.
Greater Accessibility:
Tokenization allows individuals who may not have the financial means to invest in traditional real estate to invest in real estate through tokenized shares.
Reduced Costs:
Tokenization can potentially reduce the costs associated with real estate transactions, including legal fees, brokerage fees, and other transaction costs. The middleman (broker) doesn’t exist anymore.
Increased Transparency:
Blockchain technology can provide greater transparency in real estate transactions, allowing investors to track ownership, transactions, and other important information.
Improved Security:
The use of blockchain technology can provide improved security in real estate transactions, reducing the risk of fraud and other types of malfeasance. You hear stories of deeds being forged and criminals taking out fraudulent loans, tokenization prevents fraudulent deed fraud.
Improved Efficiency:
Tokenization can potentially reduce the time it takes to close a real estate transaction, as well as make it easier to manage property ownership and transfers. Usually, when someone buys a home it can take weeks and months to finalize the sale, with tokenized contracts you can streamline the buying and selling with ease.
Democratization Of Investment:
Tokenization can make real estate investment accessible to a wider audience, potentially democratizing the investment process and providing opportunities for a greater number of people.
More Diverse Investment Options:
Tokenization can make it easier for investors to invest in a variety of real estate assets, including properties located in different countries and different types of properties (e.g., commercial, residential, industrial, etc.).
Increased Flexibility:
Tokenization can allow for more flexible investment options, such as shorter investment periods and different types of returns (e.g., revenue-sharing agreements).
Lower Entry Barrier:
Tokenization can lower the entry barrier for individuals to become real estate investors by making it possible to invest smaller amounts, as well as reduce the barriers to entry for new real estate developers who need to raise capital.