Real estate investment as an emerging trend has been making waves in the industry since the inception of new technology and instant investments for prospects with little capital.
Up until now, investing in real estate always meant large sums of money, numerous administrative and transaction charges. As the margin of prospects increases, the industry, helps many navigate through lucrative ways to increase their existing streams of income.
Property Crowdfunding
Crowdfunding in simple terms, is a process of investors pooling their financial resources in order to fund an ongoing or future project. As a result, they are given access to future generated profits.
Property crowdfunding similarly works in the exact same nature and has been an effective way to enter the investment landscape for those low on capital, or who are looking to invest in real estate properties right away. Some even start with as little as $500 to $1000. This opens up the possibility to more flexibility, and essentially lowers the bar for entry into the market.
Crowdfunding in simple terms is a process of investors pooling their financial resources in order to fund an ongoing or future project. As a result, they are given access to future generated profits.
Property crowdfunding similarly works in the exact same nature and has been an effective way to enter the investment landscape for those low on capital, or who are looking to invest in real estate properties right away. Some even start with as little as $500 to $1000. This opens up the possibility to more flexibility, and essentially lowers the bar for entry into the market.
Blockchain Platforms
Real Estate tokenization involves creating tokens on the Blockchain platform and assigning them to either existing or prospective projects in the market. The whole point of this is to use tokens to represent interest on the property at hand, increase capital as an alternative to crowdfunding or use it as a form of currency.
Previously crypto-tokens have received some backlash due to the lack of knowledge surrounding it. However, as time goes on, property markets worldwide are jumping on the bandwagon. Some notable entities that incorporate blockchain technologies within their operations include Pfizer, Emirates, The Government of Dubai, Visa, and more.
Recent reports by Global Moore indicated that tokenized real estate could reach 1.4 trillion over the span of the next five years.
For those who are relatively new to the industry of crypto and are looking for a chance to de-mystify it before completely dipping your toes in the market, attending fintech seminars could help you immensely.
Be sure to check out the one-week blockchain event held in DIFC which will uncover everything from the purpose of blockchain technologies to its pertinence in the real estate industry.
Real Estate Investment Trust (REITs)
Real Estate Investment Trust or REITs are a subset of Property Funds for both investors as well as companies. In simple terms, these are companies that either own, operate or finance real estate. One of the core benefits of owning a share of REITs is liquidity, when you own a share in a targeted REIT either in different industries or firms (that build medical buildings, industrial parks, malls etc), you can diversify your holdings, and generate income without having to manage anything.
As reported recently, there are currently over 30 countries with listed REIT securities, with a market capitalization of over $1.1 trillion – and that is just in the U.S. alone.
There are also several entities within the middle east that offer publicly-traded REITs, including ENBD, in order to accommodate long-term investments in real estate.
For more information on your own REIT shares, you can check out the click here.