How Real Estate NFTs will Impact Real Estate in the Future

[Alex Kim]

In my opinion real estate NFTS will have a huge impact on real estate in the future. 

Firstly, real estate NFTs guarantee easily traceable, secure records of ownership for a variety of property investments. 

Secondly, they will permit real estate transactions in virtual worlds, which are becoming a new investing frontier. NFTs will provide easy ways to transfer ownership of shares in real estate investments or virtual real estate. NFTs that represent fractional ownership in real world investments will be more stable. Liquidity is a big issue in real estate today. As more investors buy into the idea of fractional real estate ownership, owners are selling off portions of their digital assets. Blockchain technology will eventually eliminate the middleman and lower the risks associated with property transfers between parties.

Thirdly, property tokenization will facilitate easier borrowing or lending via NFTs. Imagine refinancing your home by putting down your property NFT as collateral and using a DeFi protocol to get access to more competitive debt offer. NFTs might easily convert into bitcoin as collateral, facilitating owners’ access to mortgages. What people don't realize yet, is that NFTs are the trojan horse into the next wave of user adoption. People want to feel like owners. Owning fractional shares of properties via NFTs will be a new way for people to feel like owners and get access to a stable appreciating asset class in a way that REITs never could.

Which of the two would you rather own, a share in a REIT or a real estate NFT of a property you have shares in?