The collaboration of real estate with NFT has opened new possibilities and numerous opportunities for participants in both industries. Real Estate NFT marketplaces have quickly become the easiest and most efficient way for real estate buyers, sellers and owners to come together and trade tokenized assets globally and securely. Here’s all you need to know about the Real Estate NFT Marketplace and how it works.
Real Estate NFT is the solution to the many problems of participants in the real estate sector. From liquidity issues to finding reliable buyers and maintaining transparency in property prices, NFTs have come a long way to revolutionize the way people buy, sell and trade real estate.
A real estate NFT is a non-fungible token that represents a property, like a piece of land or an apartment, which has been tokenized to be managed, sold and traded on the blockchain.
The concept of real estate tokenization and NFTs is becoming increasingly popular today as a way for property owners to seamlessly digitize and offer their assets to a global audience. For real estate buyers and investors, it offers access to top-quality tokenized real estate from around the world with the promise of transparent pricing, authenticity and seamless transfers.
In short, a real estate NFT is created by digitizing and representing a real piece of property by an indivisible token on the blockchain.
The biggest benefit of real estate tokens is their liquidity and tradeability. Compared to a real asset, a tokenized asset is easier to buy, sell or trade on the blockchain.
Unlike traditional properties, tokenized real estate can be purchased fractionally through real estate NFTs. Each NFT represents a fraction in a larger piece of property, thereby allowing investors to buy fractions in a property rather than buying the entire asset.
For example, this tokenized apartment listed on the BitStake platform has been divided into 710 NFTs, each representing a fraction of the apartment and allowing investors to own a piece of this luxurious Melbourne property for just A$1,016 per NFT.
Real Estate NFTs are also very secure as they store ownership records and data for their underlying physical properties and can be used to verify authenticity.
Real Estate NFTs are traded through specialized platforms called Real Estate NFT Marketplaces or exchanges. These are decentralized exchanges that use smart contracts to match and process NFT transactions without intermediaries.
Features & Benefits of Real Estate NFT Marketplaces include:
Full transparency in transactions, including transfer of ownership of the underlying real estate in full for every real estate NFT buy or sell transaction. Each NFT is a unique and indivisible asset that can only be transferred in full.
Trading real estate NFTs is much easier than trading actual real estate. You don’t have to move or physically transfer anything. All transfers and trades take place digitally.
Real estate trades on the blockchain are extremely secure and resistant to threats such as hacking. It is much more difficult to steal or fake encrypted NFTs than traditional property documentation.
Real estate tokenization reduces property transaction costs by eliminating various charges, including marginal costs, brokerage, registration charges, and other expenses involved in a property transaction.
Similar to traditional real estate, now you can also earn revenue from your property NFTs. The apartment mentioned in the above example has an APY (annual percentage yield) of 5–6% for its owners. This is in addition to an annual growth forecast of 10–11%.
NFTs bring transparency to an otherwise obscure real estate space by storing property records on a public blockchain ledger and ensuring that anyone can verify their authenticity and track transaction history.
The transfer and trading of real estate assets through NFTs is extremely fast, almost instant. All NFT transactions are instantly processed through safe and automated smart contracts.
Whether you’re planning to trade non-fungible tokens or searching for the perfect place to list your real estate NFTs, here we provide information about some of the most popular NFT marketplaces to consider. But, let’s first talk about the important factors to consider when choosing a real estate NFT marketplace .
User Experience — the platform should provide great user experience in terms of ease of use, efficiency, quality and accuracy of content, etc.
User Interface — It should feature an intuitive user interface that is both appealing and easy to interact with.
Transaction costs — Different NFT marketplaces may have different fee structures, so it’d be wise to compare marketplaces based on transaction fees and other charges.
Security — Choosing an NFT marketplace with high security and multisig wallets can ensure the long-term safety of your NFTs and funds on the platform.
Support — The exchange must also have a robust support system in place, along with good community power and support.
Other features such as advanced search, a secure wallet, storefront, token listing, and bidding options might be considered.
Decentraland
One of the largest and most famous platforms for buying, selling and trading NFT real estate. Here, you can buy virtual land in various video games in the metaverse and own them through specific NFTs.
BitStake Platform
BitStake is a marketplace for real estate NFTs . It tokenizes physical real estate to auction and sell it as NFTs. All properties are fractionalized into BITs (NFTs), providing investors with access to premium properties, like apartments, at very low costs.
Superworld
For those interested in buying lands or properties in the Metaverse, this platform gives access to over 64 billion virtual properties, including plots, stadiums, historical locations, and skyscrapers.
DigiShares
This is a real estate tokenization platform that lets owners tokenize their properties to sell them as NFTs to interested buyers and investors worldwide. The platform provides real estate crowdfunding services, allowing owners to raise funds by tokenizing their properties.
Originally published at https://bitstakeplatform.com.
