The transformation of the market thanks to real estate tokenization

In this article, we will discuss the recent merger between BBVA and Sabadell, which has raised concerns about the availability of credit promotion. With the current challenges in the banking market, it is increasingly difficult to enter into mortgage loans and there is a need to explore new forms of financing. The importance of innovative alternatives such as tokenized real estate investment is highlighted.

The Paradigm Shift in the Real Estate Sector

The merger between BBVA and Sabadell raises questions about the future of credit development in Spain. With a combined sum of 3 billion euros earmarked for construction loans, the integration of these entities could have a significant impact on the real estate sector. Experts point out that the merger could lead to BBVA-Sabadell being classified as an entity of global systemic importance (G-SIB), which would entail greater capital and liquidity requirements, which could further reduce its willingness to finance real estate projects. As a result, a reduction in the volume of available developer credit, which could hinder the development of real estate projects in the country.

Bank concentration is another factor to consider. With fewer financial institutions available to finance real estate projects, risk is concentrated in a single bank, which could affect the availability of credit for developers and developers. Although the merged entity may be larger and more solvent, there is no guarantee that it is willing to assume greater real estate risk. This uncertainty poses significant challenges for the credit development market in general.

The impact on housing construction and the reduction in developer credit would give negative signals in the housing construction sector, which could aggravate the housing shortage in Spain.

Alternative funding

In this context of a possible reduction in credit by traditional banks, access to debt funds is increasingly important for those developers who seek resources from a third party.

These debt funds are playing an important role in the alternative finance landscape. With managers raising billions for debt funds, the entry of large global firms into the business highlights the potential of the tokenized investment market. In Spain, the appearance of lenders such as Xenia, Stronghold and Terrano Capital shows the growth of the alternative investment industry, offering developers and developers more options to finance their projects.

In recent times, the use of new technologies has disrupted what has been established, and tokenization is the perfect case to explain it. Tokenized investment emerges as an alternative and promising solution. Unlike traditional methods of financing, tokenized investment allows investors to divide the ownership of a real estate asset into digital tokens, facilitating participation in the real estate market with smaller and more accessible investments, opening the door to demand that could not be achieved before.

We give you more details about how this technology is revolutionizing the industry”RWA tokenization boosting liquidity and accessibility in investments”

Tokenization opportunities to democratize real estate investment

In this changing context, tokenization is positioned as an affordable option for financing real estate projects. The reduction of developer credit by traditional banks creates a unique opportunity for platforms that use real estate tokenization and offer it to developers as a more flexible and efficient financing alternative. Through these platforms, developers can promote and reach investors interested in the real estate sector, thus democratizing access to real estate investment.

By allowing more people to participate in the real estate market, Reental is playing a crucial role in the transformation of the sector. Closing agreements with highly prestigious entities such as Unique from Grupo Civitas tokenizing projects in Valencia and Madrid, also with CLER-HP in the Dominican Republic, on the other hand our partner MdosCapital our Mexican partner where we have already launched many projects.

In a constantly evolving financial landscape, tokenized real estate investment emerges as an innovative and disruptive solution. Through platforms such as Reental, new opportunities are opening up for developers, investors and the economy in general. By taking advantage of these alternatives, we can build a stronger and more prosperous future for all.