Real estate is one of the strongest investment objects and one of the most interesting objects for tokenization. Regardless of the situation on the stock market, there is always a need for housing and working space. Therefore, real estate is characterized by stability and continuity.
However, real estate transactions have always been complex and expensive, resulting in low liquidity of this asset. And that's where tokenization comes to the rescue as a way to optimize real estate transactions. By converting an apartment into Security tokens, you increase the liquidity of the property, simplify and reduce the cost of transactions with it and avoid complex legal procedures.
Real estate construction follows the same technology as the creation of Bitcoin and other primary token offerings, but taking into account the legal nuances associated with buying and selling real estate. Tokenization of real estate happens as follows: a virtual token representing a stake in that property is created. Transactions are now carried out in the digital space, instead of the traditional paper-based title deeds.
Tokenization of real estate can represent a share in the property itself or in the company that owns it. It can also be a claim secured by that real estate, a share of the sale proceeds, and other types of rights.
Tokenization is a flexible tool for managing real estate rights. The traditional stock market cannot offer such a wide range of possibilities.
Any type of real estate can be tokenized - it can be single-family homes, apartment buildings, offices, warehouses, and any other type of property.