Oxford Future of Real Estate Initiative report explores reality behind the promise of real estate tokenisation
Real estate tokenisation is a term used to describe the transfer and fractionalisation of the value of real estate assets, debt and funds into digital tokens using blockchain technology. It draws on the concepts of both crowdfunding and cryptocurrencies and promises a revolution in the way real estate is funded, bought and sold. PropTech (property technology) entrepreneurs across the world believe this invention is about to change real estate forever. Are they right?
A report released today by the Oxford Future of Real Estate Initiative at Saïd Business School, University of Oxford in collaboration with Bryan Cave Leighton Paisner, CBRE and EY explores the true potential of tokenisation and its likely impact on the real estate industry. Titled Tokenisation: the future of real estate investment? The report is split across eight chapters and features extensive interviews with industry leaders, entrepreneurs and academics.
The report found no shortage of optimism among real estate entrepreneurs. And the technology’s potential is compelling – young investors could place a foot on the property ladder with just a small sum of money and trade their investments in seconds. The fractionalisation of real estate ownership would improve liquidity by speeding up trading and reducing costs.