Can NFTs and Defi revolutionize real estate investment?

Wondering if NFTs (Non-fungible tokens) and Defi (Decentralized finance) could revolutionize real estate investment? The answer is yes, NFTs and Defi hold the potential to make an impact in the real estate segment. Real estate investment is one of the mainstream investments generating huge returns and opening doors for new opportunities. With real estate showing interest in Blockchain technology, new avenues are opened in terms of fractionalized ownership, cryptocurrency-backed mortgages, and other unique ownerships.

Can NFTs be used to serve for real estate dealings?

NFTs can be counted under the decentralized capital category, and NFTs can be the next fuel to power the real estate market. With cryptocurrencies coming to the fore and having the potential to become mainstream, real estate is now feeling the effect.

Real estate developers are now seeking ways to list properties of Bitcoin or other types of cryptocurrencies. With the crypto craze on the rise these days, investors are trying and figuring out new ways to buy or sell homes via non-fungible tokens or NFT – a new way of Decentralized investment. This form of a digital asset is a unique digital token that secures sole ownership of the digital asset through blockchain. It further allows for seamless tracking and to be sold for suppositional price increases.

Can Defi be used to serve for real estate dealings?

There is no denying the fact that Defi (Decentralized finance) is revolutionizing the way we dealt with finances or financial services. Especially in the real estate industry, Defi is creating storms with several advantages over traditional banking or financial services.

Defi can be used in the real estate domain, as it is more transparent and cutting-edge technology compared to a centralized banking system. This form of finance can be advantageous to real estate for being flexible and transparent and can eliminate paper-based counterparts still used today. Defi smart contracts will allow tokenization of the assets and can help in representing fractional ownership of a real estate or a property.

Here is how NFTs and Defi redefining real estate dealings –

·    Sale of real estate using NFTs: NFTs or non-fungible tokens can function as digital deeds which can store records in the safest way possible. Same as a deed, an NFT will refer to an individual thing or part of a whole. The use of NFTs in real estate is still pacing up with technicalities that might not be viable to sell real estate using non-fungible tokens solely.

·  Mortgages and loans using Defi: Defi has the potential to replace the traditional finance dealings, and loans & mortgages are no exceptions. Defi can be used to apply for loans or mortgages within seconds. The good thing here is that Defi loans and mortgages can be tokenized to buy a property. 

·    Fractional real estate sales via NFTs: Buying the entire property using non-fungible tokens might take longer, but tokenized or fractional ownership of the real estate is absolutely possible. This will allow buying shares of individual projects at a very prohibitive cost with wide profit margins.

·   Automation of renting: Defi is a virtual technology that can help with the automation of rent and adjustment of rents. Defi is a blockchain-based data entry system that can help in renting office spaces for the exact length of time and need by eliminating traditionally used paper-based systems.

According to the Best blockchain development company, NFTs and Defi both are based on blockchain technology but can impact multiple industries. This mainstream investment can open up new possibilities and reveal new trends associated with decentralized technology.