The Future of Commercial Real Estate Investment



  • Liquidity creates the transactional accessibility of any asset in the market. Most of the people around us have a life-long dream to buy a property as an investment. But, have you ever thought why it is inaccessible to many even though there is ever-increasing demand to buy or sell a property?

    The answer is very simple, illiquidity.

    Until you find the right person with the mutually agreed liquidity, you cannot sell an asset. Likewise, you need a huge amount of money to buy a property. To date, it is not possible to buy a very small piece of land; you need to buy as a whole. Along with that, the system of registration and other legal compliance mechanisms is very difficult to follow up without the help of any third parties or intermediaries.

    It is not a thing anymore. The blockchain technology, which came to limelight with the rise in popularity of bitcoin is changing the whole demography of how real estate assets are managed and transacted.

    The real-world usage of blockchain technology is tested in different fields. Likewise, the solution to the illiquid nature of the asset is asset tokenization.

    Tokenization of real estate converts the asset into smaller tokens, and each token can be traded in asset exchanges. The most important thing is the smart contract enabled tokens will self-execute the pre-defined functionality, which will reduce the dependency on intermediaries, and an immutable distributed ledger will secure all the transactional details and reduce the errors in paperwork.

    Have an asset? Want to tokenize it to increase liquidity? Blockchain App Factory, the experienced tokenization platform with a team of developers who can help you raise funds within the regulatory framework. Visit our site: BlockChain App Factory to know more about real estate tokenization and schedule a meeting to talk to our experts.