What advantages does real estate tokenization offer compared to traditional real estate investment?

When you decide to start investing in a new market, you need to understand its size and potential, so first let's highlight some facts that help us realize the gigantic real estate investment market.

Let's start by remembering that the most abundant asset class on the planet is neither bonds nor stocks, but real estate. In fact, real estate assets account for approximately 60% of all global investment, and just under triple global GDP. And although its size is so enormous, it is much less exploited than other types of assets, since there is a difference between the potential market and the real market, the latter being the one that investors have access to in the market.

Although most real estate is not investable, this is not a problem, since we must bear in mind that most properties are residential and their owners have no interest in making those investments profitable, since they live in the property. However, there are a large number of properties and real estate projects that will benefit from greater efficiency and accessibility to the market. By reducing transaction costs and other barriers, capital that was previously not accessible for investment can be freed up.

And in this context, how does the tokenization of real estate help to eliminate the above-mentioned obstacles?

At Reental, we are clear that investing in tokenized properties is the perfect way to unlock all current barriers and to be able to take advantage of all the potential of the real estate market, let's look at some of its advantages.

Liquidity

Real liquidity has always been the handicap of the traditional real estate sector. Nowadays, with liquidity pools and decentralized exchanges, it has been possible to create a secondary market that allows you to divest your capital from anywhere, at any time and without the need for a buyer or seller. In addition, through Reental you can sell or buy your tokens from other Reental investors, we would act as intermediaries for the transaction if necessary.

Barriers to entry

Undoubtedly, it is not available to anyone to invest all the capital required to acquire a real estate asset, which is why real estate tokenization is the key to entry for small and medium-sized investors to the real estate sector, a sector that was previously reserved for a few. In Reental, anyone can invest starting at 100€ and will receive monthly dividends without any worries.

Lower costs and greater profitability

One of the main problems of the traditional real estate sector is the number of intermediaries, and therefore, a high cost that does not provide much value to the property and only reduces profitability for the investor. Real estate tokenization makes it possible to eliminate certain intermediaries, thus reducing costs and ensuring a greater return on sight in the traditional sector.

Transparency and immutability

Blockchain technology stands out for one thing because of its traceability, security and transparency, all of these features greatly benefit real estate tokenization compared to the traditional real estate sector. Thanks to this technology, investors have all the information in the palm of their hand, without any kind of secrecy, which increases their confidence and understanding of the business project and the exploitation that is made of the assets. For example, in Reental you can observe the purchase of tokens at all times, the whitepaper of each tokenized property presents all the details of these and all the transactions made after the tokenization of the property are visible to everyone.

Geographic barriers

Globalization has been a worldwide revolution that has allowed us to be closer than ever to products that we could ever have imagined, but why can I buy a product from the other end of the world, but must I invest in my local market? Without a doubt, it was one of the questions we were asking at Reental, and thanks to tokenization, we can eliminate all kinds of barriers so that anyone from anywhere in the world can invest in the real estate sector.

Portfolio diversification

Finally, having different assets in the investment portfolio is the best way to protect capital and thus not “have all your eggs in the same basket”. We always remember that there are many types of investments in the world, and each investor should choose the one that best suits their objectives and resources. But we can't deny that adding a real estate asset to the portfolio always gives confidence and peace of mind.

In conclusion, since the industrial revolution, humans have not stopped progressing and reinventing different sectors that were obsolete. Right under our noses we have the potential largest market in the world, which is not being exploited in a way that shows its full potential, and it is in this scenario that real estate tokenization takes on real importance, since it is the key to unleashing all the potential of the real estate sector.

In order not to miss any of the opportunities we present, we recommend that you join our group of Telegram To get to know others Reentels and the whole team. Of course we invite you to take a look at our articles on the blog to continue informing you.

Welcome to the new way of doing finance, welcome to Reental.