“NFTs are digital real estate, and it is going to be worth a lot more than real estate” ― Anuj Jasani.
Nowadays, blockchain, virtual reality, cryptocurrency, and augmented reality are one of the most sought after technologies. From these emerged non fungible tokens or NFTs that became the talk of the town in a short span of time. And over the years, NFTs have seeped into every industry including real estate.
Users around the world use NFTs for listing, purchasing, and selling properties, as well as for managing assets in the real estate industry. According to statistics, virtual lands worth more than $300 million contributed to 25% of NFT purchases in December 2021.
That sounds like great news for any crypto investor as NFT opens yet another investment option.
As more and more individuals are trying to move their lives into the digital arena, the ways in which individuals purchase and sell products or assets are also changing proportionately. So, without any further ado, let’s proceed to see how the real estate industry is shifting toward non-fungible tokens and representing physical properties that have a dramatic impact on the unforeseen future of commercial real estate. And most importantly, how will it impact real estate buyers and sellers?
NFTs: Why Use Them For Real Estate?
In the earlier days, buyers and sellers had to face the hassle of transferring property ownership. But with NFTs, transferring ownership is just a matter of a click. Both buyers and sellers can purchase & sell assets and transfer ownerships with a simple click to approve the NFT transaction.
If any buyer wants to purchase or set up an equity line, they can do so by making a purchase using NFT assets. An NFT will allow you to assume ownership of a piece of real estate just within a few minutes by setting up an NFT contract. These are immutable records of ownership which not only proves that you own something but also allows access to the history of transactions it was involved in.
Presently, cyber fraud in the real estate industry is skyrocketing. But non-fungible tokens make it possible for both the buyers as well as for sellers to achieve the highest level of security & data integrity. It safeguards purchasers & sellers and makes it much easier for them to transfer assets without any kind of issues.
Are NFTs Helpful In Purchasing & Selling An Asset?
Non-fungible tokens appear to be the finest alternatives to fiat money. But after understanding more about these tokens, you’ll know about how far they are beneficial for the real estate industry.
Do you want to know how they work in the buying and selling of an asset? And what can NFTs do for the buyers & sellers involved in the real estate industry? Let’s get into the details.
NFTs will infiltrate all the facets of the real estate market and offer buyers & sellers more bang for their bucks. Real Estate NFT Tokenization, If the buyers and sellers are involved in the process of purchasing & selling an apartment with NFTs, they will be able to easily cross-check the previous buyers or sellers; transfer assets securely & immediately; go through the complete process merely in a couple of weeks, and more.
As the technologies are expanding, both the buyers & sellers are exploring opportunities to buy, or even sell properties in the real as well as the virtual world. NFT is one of the cost-conscious and time-saving options that triggers several automated actions for payments, maintenance rentals, dividends, and more. Additionally, with the use of NFTs for real estate, the sale of properties becomes simple as it involves an improved level of security & data integration for making the process of selling assets simpler than before.
How Is NFT Changing Buyer Behavior?
NFTs are one of the most interesting trends that are helpful for house hunters searching for valuable properties. The greatest way to facilitate first-time home purchasers to walk a step closer to achieving their dream homes. But how exactly is it changing the buyer’s behavior? In what ways does NFT enable buyers to purchase properties in the metaverse?
Let’s have a glance at them:-
An Efficient & Secure Way to Buy Land
Real estate procedures involve a lot of paperwork today. More paperwork means more scope of losing essential information or tempering. With NFT, there is no possibility of loss alteration and forgery of your legal papers.
In the virtual world, the buyers can tokenize their purchased land and start a construction project. They can also track the ownership history, verify authenticity of previous transactions, and more due to the immutable nature of blockchain ledgers.
A New Investment Opportunity
Real estate industry is not just about buying land or property for residential purposes. For a majority of the population, it’s an investment. Whether in the form of commercial space or as a way of investing money for the future.
For those keen on finding new ways to invest, NFT in real estate is an unmissable opportunity. It opens the door to buy land in the metaverse using NFT and move their investment into the virtual world too.
Considering the scope of NFT, this might be an investment opportunity that will bring good returns.
Work In Virtual Office Space
COVID-19 started the trend of remote work. Even today, people are preferring remote work over on site job roles.
AS we move into 2023, remote work has taken a new form. Individuals are looking forward to buying land in the metaverse with the help of NFT so that they can use this space to build a virtual office space.
Moreover, it’s one of the most advantageous ways to assist individuals in establishing a company in the virtual space for not only gaining virtual services but also offering them to others.
Avoid Additional Taxes and Charges
Cryptocurrency eliminates the role of banks in transactions. Now, what does this mean? In this case, this means the charges incurred on transactions as taxes or bank fee will be eliminated.
Of course, there will be fees related to NFT transactions such as gas and royalty fees. But, it will be significantly lower than the charges associated with real estate purchases today.
How Does NFT Help Sellers?
Brand Extension Into the Virtual Space
It has become possible for sellers to construct, sell and list properties in the virtual space and provide a unique buying experience. Here, NFTs play a major role as real estate transactions in the metaverse are driven by NFTs.
Presently, various buyers have initiated to expand their user base in the metaverse, known as the interactive world. It allows them to enjoy a virtual lifestyle and acquire innumerable benefits as well. Exploring this space will undoubtedly be a great way to extend the scope of the business.
Simplify & Speed Up The Selling Procedure
With banks out of the picture, peer to peer transactions become the norm with NFTs. All a user has to do is approve the transaction from their end and the purchase is complete.
Sellers will be able to take advantage of this feature because not only do NFTs make transfer of ownership easier, they also keep track of the sale. Since NFTs are blockchain based, every transaction history is stored in blocks with no scope of alteration. Sellers will not have to worry about additional paperwork and formalities as everything will be done via immutable smart contracts.
Ultimately, the future of real estate non-fungible tokens looks bright. In the coming years, more and more individuals will get onto this newest trend and one of the most trustworthy or tangible solutions. Besides, NFTs will be a proven solution for the challenges concerned with property trading, property deals, double-ended processes, title registration, tax-related issues, and property transfers. So, is NFT in real estate a good thing? That’s for you to decide.
