Hey Opportunity!
Meet Accessibility.
A proactive Real Estate firm significantly expanded the investor pool for premium properties, by using tokenization to enable fractional ownership.
Tokenization Made Premium Properties Accessible To A Wider Pool Of Investors
High capital requirements are a bar to investment in premium real estate properties. Fractional real estate ownership allows investment in such properties by small and medium investors. However this requires investor trust and regulatory compliance. A reputed real estate firm used NFT based fractional ownership to make such real estate investments more accessible.
3 Key Challenges To Fractional Ownership Of Premium Real Estate
Regulatory
Compliance
Tokenized fractional real estate ownership requires adherence to industry regulations, to ensure customers are getting exactly what they are paying for.
Limited
Adoption
Educating investors about the benefits of fractional ownership is challenging. Acceptance is low, due to limited awareness.
Technical
Infrastructure
Investor trust in fractional ownership is needed to make the approach popular. This requires robust Blockchain infrastructure.
A Solution Based On Tokenization & Blockchain
The real estate firm issued Non-Fungible Tokens (NFTs) to represent a fraction of the value of premium properties. These NFTs could then be purchased by investors who would not be able to afford the entire property.
SOLUTION 1
Ensuring Regulatory Compliance
Collaboration with a reputed legal firm led to the creation of compliant property-backed tokens on a blockchain.
SOLUTION 2
Expanding The Investment Pool
Educating small and medium investors about the benefits of fractional ownership led to wider adoption in the segment.
SOLUTION 3
Creating Tech Infrastructure
The firm invested in a secure blockchain platform, to ensure the smooth management of property-backed tokens.
TRUST BUILT ON TOKENIZATION
NFT based fractional tokenization attracts investors who would otherwise not have the budget for premium properties. It allows small and medium investors to purchase an affordable share of such assets.
Smart Contracts
Smart contracts digitize the equity of premium real estate properties. This reassures small and medium investors, who are typically risk averse.
Increased Liquidity
Tokenization also leads to the creation of a secondary trading market. The result is the opening up of more investment streams and increased liquidity.
Improved Revenue Streams
Positive outcomes include maximized revenue, increased occupancy, and improved margins. Real estate firms also gain more brand recognition.
Widening The Investor Base
Making part ownership of a premium real estate property possible results in more investors and a larger pool of funds.
Qila has created the perfect options for your business to seamlessly onboard tokenization, as well as more advanced integration with dedicated resources.
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The right application of blockchain and tokenization can completely transform the profitability, perception, and market share of your brand. To make this quantum leap now:
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