by Real estate is another big industry affected by NFTs. Non-fungible tokens (NFTs) are gaining popularity as a medium of exchange in the digital space, and NFT properties are no different. It allows investors to buy real estate or fractional shares in real estate and benefit from its value increasing over time.
NFT real estate is not just limited to physical property. Companies like Decentraland and The Sandbox are paving the way in virtual worlds, creating a new type of metaverse while integrating blockchain technology.
In this article, we will discuss why cryptocurrency mixed with real estate investments could be the next big trend, some companies behind digital real estate and others focusing on physical real estate using fractional ownership and memberships.
Why is NFT real estate the next big trend?
First, NFTs provide secure and transparent transactions, giving buyers confidence that they are getting what they pay for. The digital nature of these assets makes it easy to transfer ownership quickly and efficiently without having to worry about paperwork or complicated legal processes. In addition, NFT properties are not subject to the same tax obligations as traditional real estate, giving investors a more attractive option to invest their money.
Secondly, investing in real estate through NFTs is also a great way to diversify your portfolio by splitting ownership – meaning you can buy a share of the entire property without having to buy the whole thing. In addition, owning an NFT property gives investors access to value growth as the value of the property increases over time, allowing them to reap the benefits of value growth without having to have all their eggs in one basket.
Finally, it has much lower entry barriers compared to traditional real estate investments. With no physical infrastructure or high costs associated with purchasing homes or land, investors have the opportunity to diversify their portfolios without breaking the bank. All of these benefits make NFTs the next big trend in real estate investing, giving everyone the chance to build a diverse portfolio and potentially reap significant benefits.
Examples of innovative companies
The discussion of real estate investing based on NFTs can quickly become complex and nuanced. For the sake of simplicity, let’s divide them into two types of assets: pure digital assets on the one hand, and physical assets mixed with digital on the other hand.
For example, The Sandbox is a company that has created a metaverse that combines NFT with gaming elements. Players buy NFT tokens that represent in-game assets such as weapons, vehicles, or armor – these NFTs then act as currency in the game’s economy. The NFT tokens used in The Sandbox also give players a stake in the platform – meaning they benefit as the platform grows
Another company paving the way for NFT real estate investment is Decentraland, a virtual world where NFTs are used to purchase plots of land. NFT properties in Decentraland are unique in that they allow users to build and create anything they can imagine – from shops to art galleries and even entire cities.
As for the physical side of things, Meta Estate Empire is at the forefront of how we think about NFT real estate investments. Instead of offering membership via NFT, they offer investors the opportunity to fractionally invest in real estate using NFT with an ERC1155 smart contract and token as ERC20 with the ability to migrate from ETH to Lightning Taro. The maximum supply will remain at 210 million tokens with a deflation system and a voting DAO. Within the platform, investors can see real-time market updates, giving them unparalleled flexibility to diversify their portfolio as they see fit.
The real estate market is characterized by volatility and uncertainty. With Meta Estate Empire, investors can buy fractionally across multiple locations, reducing risk while offering opportunities for blockchain technology in physical real estate. The platform adds liquidation to the illiquid market allowing all traders a piece of the pie. In addition, the platform has many unique selling propositions such as auctions, tokenization and buying real estate assets in addition to fractional ownership.
In addition, companies like Propy are revolutionizing the way real estate is bought and sold around the world using blockchain technology. The Propy platform allows users to close traditional real estate transactions completely online, eliminating fraudulent transactions and saving up to ten hours of paperwork per transaction. All quotes, signed contracts, payments and title deeds can be managed from one platform with integration with other services such as DocuSign or bank transfers.
Will blockchain real estate be the future?
NFT real estate is an exciting new way for investors to diversify their portfolios and benefit from appreciation on a fractional basis. Secure transactions and low barriers to entry make NFT real estate attractive for several reasons. It allows almost anyone to enter at the lowest cost while giving them the potential to reap the benefits of increasing value over time.
The NFT real estate market is still in its early stages but is rapidly gaining ground. Even though we are currently dealing with a bearish crypto market, more and more companies and platforms are moving towards this asset class. It’s hard to predict the future, but it looks like NFT real estate has the potential to become one of the most popular investment assets on Web3.
Disclaimer: This is a paid post and should not be considered news/advice.
