The tokenization of real estate in Latin America is a fact that has been present for some time within the real estate industry, to such an extent that it is expected that in approximately 10 years both the tokenization of real estate and the sale of them in cryptocurrencies will be completely naturalized.
According to Gonzalo Abalsamo, founder and CEO of Simplestate, The Real Estate environment has been focused on seeking closeness and attracting large investors for decades. However, what has been seen in recent years is that this sector seeks to expand by reaching new and smaller investors.
As Gonzalo put it, The real estate sector to achieve its expansion objective takes advantage of two fundamental elements: “the development of technology that facilitates access to new channels and platforms and the exponential growth of investments in cryptocurrencies.”. Which undoubtedly have the imprint of the younger generations.
“It has been proven that simplicity and security when investing are priority drivers for the investor and, given this trend, Crowdinvesting allowed small savers to invest in Real Estate and thus evolve towards a model that simplifies the best of all worlds: the liquidity of the Crypto world and the security of Real Estate” commented Gonzalo Abalsamo.
In this case, investment platforms also known as “Exchanges”must match this operation, that is, in them the investor must be able to invest easily and quickly and dispose of his funds.
In the case of the real estate sector, in the exchange investors can invest anywhere in the world, in addition, they can withdraw their funds (which can even be dollarized) whenever they want. Likewise, the exchange makes it easier for small investors to enter the market.
“It is estimated that in 2023 investors will prioritize long-term stability, where property investment is projected as a safe haven value.” Gonzalo assured.
Currently, Argentines can tokenize a property, pay in installments, buy and/or invest square meters in projects in the form of crowdfunding or crowdinvesting so that they generate interest and/or have access to well apartments.
Tokenization can be carried out in different ways, there is what is done with NFT in which transactions and tokens are simplified through an exchange or there is also Crowdfunding With which “democratize or maximize access with returns for the investor.” Gonzalo mentioned.
In the case of small and/or medium developers, tokenization allows independence to the point of not having to depend exclusively on a final buyer.
Nowadays, through a Real Estate exchange, real estate funds with flashy projects offer investment opportunities to micro-investors who in other circumstances would find it difficult to invest in said funds with important projects.
An example of this is that it offers funds and/or developers the possibility of dividing the property into quotas, which are called tokens and can be bought by many people. “That is, if you have a real estate fund that offers 1 million dollars in projects, you should have 1 million tokens.” Abalsamo detailed.
When talking about tokens, in this case, we don’t exactly talk about cryptocurrencies as is usually done. On this occasion, reference is made to tokens linked to different “yields” with various types of liquidity, projects and/or funds. These tokens may have less profitability but with short-term exits, tokens that are leveraged in a range of 12-14 months in a specific project, etc.
Right now Argentina ranks 13th in the world regarding the adoption of Stablecoins and second place, after Brazil, in Latin America. According to Gonzalo, the “mindset” it is transforming. “The small saver does not want to lose more against inflation and looks for places to be able to invest in an agile and fast way.”
The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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