Real estate tokenization is a modern way of investing in real estate. This revolutionary concept, made possible because of blockchain technology and smart contracts, has disrupted the traditional real estate industry by offering investors access to fractional ownership of a property.
Real estate tokenization converts the value of real estate into tokens stored on a blockchain, enabling digital ownership and transfer. These divisible tokens represent a fractional share of ownership stake in that real estate.
Despite universal globalization, the real estate market's main problem is that it is still not global. Mass buyers and investors generally look at the real estate market within their country or city. Accordingly, for real estate development companies and property owners, this means an artificial reduction in demand, limiting opportunities for growth in their business. Smart contracts and tokens come to solve these problems. Together, they erase boundaries for real estate transaction participants, reduce transaction costs, and open new opportunities for market participants.