Recent regulatory development in the area of digital assets now makes it possible to consider the tokenization of private properties.
As witnessed by other countries such as the USA, France or India, this alternative investment vehicle could revolutionize worldwide real estate market by increasing property accessibility, liquidity, efficiency, and transparency for investors.
In short, tokenization is the process of fragmenting private real estate ownership into tradable digital tokens stored and secured on a blockchain platform.
For instance, you could buy 1 token which would represent a fractional ownership of 5m2 of a private apartment in Dubai UAE.
Your space/token could in turn generate an annual rental income.
Other advantages of tokens are that investors can easily manage a portfolio of diversified property holdings by purchasing and trading tokens online anytime and from anywhere in the world. Local promotors could also use new token offerings as an alternative to collect funds to finance real estate projects. The smart contracts and blockchain technology allow for ownership protection and transfer at extremely competitive costs.