Dubai is pioneering a digital revolution in the real estate sector, with the advent of blockchain technology. On a recent episode of the podcast, “Decentralize with Cointelegraph”, industry experts Amira Sajwani from Damac Properties and John Patrick Mullin from Mantra discussed their ambitious $1 billion vision to transform the global property investment landscape by tokenizing tangible assets.
Tokenization: Separating the myth from reality
A common misunderstanding surrounding asset tokenization is its perceived link to the volatility of cryptocurrencies. Sajwani tackled this issue directly, explaining that the fluctuation of a tokenized asset is tied to the actual asset being tokenized, not to the cryptocurrency market. Unlike cryptocurrencies, tokenized real estate assets derive their value from tangible properties, providing investors with stability and practical application.
Tokenization of real estate, though still in its infancy, holds huge potential according to industry leaders. Mullin foresees a future where blockchain technology is used to bring trillions of dollars of tangible assets into the digital domain: “We’re expecting this to go into potentially trillions of dollars of assets on chain,” says Mullin. This industry’s growth will necessitate robust market participants, innovation, and regulatory clarity. Mantra’s collaborative approach aims to expedite adoption and foster competition within this domain.
The perfect application for real estate
While several types of assets are being tokenized, from gold to fine art, Sajwani opines that real estate presents the most compelling opportunity for tokenization. She believes, “Real estate is the best asset as a use case for tokenization, because not only is there value behind the asset, but there’s also a yield.” Tokenization allows fractional ownership, thereby reducing the entry barrier for investors while ensuring a consistent income through rental yields.
As Damac and Mantra advance their billion-dollar vision, the future of real estate investment appears more accessible, transparent, and efficient. With Dubai at the helm of this transformation, blockchain-enabled real estate is poised to become mainstream, potentially unlocking global investment opportunities for millions.
Do listen to the full episode of “Decentralize with Cointelegraph” on the podcast page of Cointelegraph, Spotify, Apple Podcasts, or your favorite podcast platform. Also, check out the variety of other shows offered by Cointelegraph!
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