The real estate industry is undergoing a digital change, and Dubai is ahead of this revolution.
In this episode of Decentralized on cointelegraph, Amira Sajwani, Managing Director of Damac Properties, and John Patrick Mullin, co-founder and Mantra’s CEO, discuss their $ 1 billion plan to token real-world assets (RWAs) and reshape global investment in property.
Tokenization: More than Crypto volatility
One of the biggest misconceptions about asset tokenization is its interaction with cryptocurrency volatility. Sajwani addresses this head-on concern:
I think many people relate to tokenization to volatility of cryptocurrencies. I want to dispel the fact that when you buy a tokenized asset, yes, it’s in the blockchain, but your volatility is linked to the owner that it is, not the actual, let’s say, crypto currencies or mythology that exist in the market.
Unlike cryptocurrencies, tokenized real estate properties derive their value from physical properties, offering stability and real-world utility to investors.
Related: Crypto shows how strong are private stocks of tokenizing – Robinhood CEO
Tokenized real estate is still in its early stages, but industry leaders believe its potential is huge. Mullin thinks of a future where trillion dollars of real-world assets will be taken to the blockchain:
If you look at the base ecosystem today, it’s still a drop in the ocean compared to which we expect it to go in the middle of the long run. It is in ten -ten -billion -billion. We hope this will go to the potential trillion dollar of property in the chain. So we still have a very, very long way to go.
In order to develop this industry, it will require strong market participants, change and regulation clarity. Mantra’s open approach to collaboration aims to accelerate adoption and competition within the galaxy.
The perfect case of real estate use
While different classes have been exposed -from gold to fine art -Sajwani says real estate offers the most compelling proposal of value:
“I really believe that real estate is the best possession of a case of use for tokenization, because not only has the value behind the owner, but also has a harvest. So if you go and gokenize a gold bar, well. Everyone has a part of gold, but they don’t really benefit out of the small part until it sells to a premium or an appreciation. -As clear that there is a harvest here. “
By enabling fractional ownership, the tokenization lowers the entry barrier for investors while providing a stable stream of income through hire yields.
As Damac and Mantra push with their billion dollar plans, the future of real estate investment is becoming more accessible, transparent and efficient. Through Dubai leading the road, the real estate-powered blockchain can be the standard, opening global investment opportunities in millions.
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