The Global Real Estate Market
Last updated
Last updated
“Only 3% of the global population has invested in real estate, but over 80% view real estate as a good investment.” ~ Josh D. Morton, Blockchain Holds Potential For Commercial Real Estate"
Real estate has always been considered a relatively safe investment. Regardless of events around the world, people will always need a place to live and work in the physical world. Yet access to real estate investment is only available to the few as the transactions can be some of the most complex and expensive, therefore discouraging smaller investors from participating and resulting in an illiquid market.
The global real estate market is valued at US$228 trillion. Without the tokenization of real estate, only accredited and institutional investors as well as high net worth individuals have had access to these investments.
The lack of liquidity in traditional real estate causes non-transparent markets because of the high investment costs, inefficient processes, expensive middlemen, and market conditions that tie up investments for a long time.
Tokenization using distributed ledger technology can address the drawbacks of the traditional real estate market by reducing the barriers to entry, increasing market liquidity, improving transparency, and streamlining the investment process.