Real estate NFTs

Non-fungible tokens, NFTs, have deeply impacted various domains. In real estate, NFTs have carved their niche by offering some very unique benefits. In this article, we delve into real estate NFTs, their benefits, and more. Let’s get started.

What are real-estate NFTs?

Non-fungible tokens are digital assets recorded on a blockchain. As they reside on a blockchain network, they are easily verifiable, and it becomes possible to find the ownership and true identity of these assets. In addition, you can also view and access the complete history of previous transactions on it. These properties are highly useful when it comes to real-estate NFTs. Real-estate NFTs refer to any real estate like a house, property, or land represented by an NFT. In simple language, they are records on blockchain that show real-estate ownership. When a house or land is depicted as an NFT, tracking its ownership and identity becomes easier.

Virtual Real-estate NFTs – Explained

With the rise of cryptocurrency and NFTs, a new wave of Web 3.0 emerged – the Metaverse. Metaverse essentially refers to a virtual world connected by AR, VR, and videos and offers an immersive experience to the users. That said, there are also virtual lands and properties that are capable of being owned as NFTs. Metaverse is a digital space that brings real-life objects, including real estate, to life.

An interesting fact is that real estate in the metaverse can be viewed, accessed, and developed by users. Companies like Meta are spending huge amounts of money on creating these virtual spaces. Similar to physical real estate, users can own properties in the metaverse, and buying and selling them is possible. Most companies are building digital replicas of their physical stores and properties in the metaverse. Users viewing them will find the same experience that they feel when they go to the property or store in person.

Where can you buy real estate NFTs?

There are various platforms that offer the opportunity to purchase real estate NFTs. Some of these are:

• Decentraland
• Polka City
• SuperWorld
• Upland
• The Sandbox
• Fraction
• Propy
• RealT

Is there any way in which real estate NFTs can affect physical real estate?

Non-fungible tokens, NFTs, have spread their influence and impacted all spheres of human life; real estate is no exception. While NFTs could affect physical real estate in multiple ways, let’s understand some of the key aspects.

Permanent Record

The blockchain is a permanent record that includes all the transactions which are tamper-proof, unchangeable, and accessible for public view. In the case of real-estate NFTs, they can be used to collect a lot of critical information. For example, if you buy land, all your details on the purchase will be recorded in the blockchain. Later, if any other buyer is interested in purchasing the same land, they will be able to see all the information relevant to the property, like the value it was sold for, any legal disputes, payments, actions, and such.

Secured Records

Blockchain transactions are highly secure and are known for their speed, efficiency, and low fees. As NFTs are underpinned by blockchain technology, they support all these aspects. With your real-estate NFTs, the transactions will be executed in a matter of few minutes, unlike the conventional ones, which used to take days, weeks, or even months. In addition, conventional transactions involve intermediaries who used to charge a good amount of money as administrative costs for facilitating a sale. These costs often discourage the parties from entering into a transaction. However, this issue is eliminated in a real estate NFT as all transactions occur between a seller and a buyer – with no middlemen involved.

Automated Contracts

Non-fungible tokens, or NFTs, work on the underlying concept of smart contracts. Smart contracts are programmable codes that execute automatically when certain conditions are met. These smart contracts are highly effective in the real estate industry. For instance, in a normal scenario, buying and selling a property takes a lot of time as several aspects of agreements would have to be checked and validated. By creating Smart contracts help in expediting these processes by automating them. Therefore, when a buyer or seller meets the criteria, the contract automatically executes and informs the buyer of the sale, and sends the purchase price to the seller.

Fractional Ownership

You must be aware of fractionalizing a physical real estate property into parcels. This is possible with virtual real estate too. Likewise, it is possible for multiple individuals to co-own a property. This idea usually applies in cases where many people want to pool their funds to purchase a property. Another case where this applies is where a property developer wants to raise funds to complete a project and lets others join funds together. In these scenarios, the individuals can easily secure their share of ownership. So, how does this work? Essentially, the co-owners create multiple tokens, each representing their identity for all individuals who pooled their funds together. Besides showcasing their ownership, it helps secure their rights, especially in cases where the shares are unequal. In addition, the individuals who own the share can sell it to anyone. That said, the person who buys inherits the share of the seller and any other rights the seller has. Besides, no one else has the right to the shared token other than the recipient.

Wrapping up

Non-fungible tokens are here to stay, including real estate NFTs. Virtual real estate holds as much potential and opportunities as physical real estate. In fact, the digital space offers more options, such as sharing ownership, fractionalizing, eliminating intermediaries in transactions, automation through smart contracts, and more. Real estate NFTs will be redefined in the metaverse space.

We at iMintify, are specialists in the NFT space – websites, landing pages, marketplaces, minting, and more! Feel free to reach out to us here for any of the services or any queries.