A project that will change the real estate market forever

Real estate market

Real estate tokenization is the conversion of real estate ownership into a digital token on the blockchain. Instead of papers and notaries, there will be digital tokens and smart contracts. But why is this necessary? That’s what we’re going to talk about now.

Briefly about how tokenized real estate works

Real estate tokenization is the process of converting the ownership of real estate into a digital token on the blockchain. It can be divided into many smaller units, allowing the owner to sell part of their property rather than the entire property.

The square meters are converted into tokens, and from that point on, they can be sold and bought just like other digital assets. Each such transaction is protected by the blockchain. This is much more convenient and secure than using paper documents and intermediaries in the form of lawyers and real estate agents, as is the case now. Let’s imagine for a moment what a world in which digital real estate took over might look like.

A world of digitalized real estate

If tokenized real estate becomes more popular, it could lead to global changes in the real estate market:

  • Democratization of access. Tokenization can lower the barriers to entry into the real estate market for both investors and buyers. Those who previously found it difficult to invest in real estate due to high prices or geographical restrictions can now buy tokens and thus become co-owners of assets.
  • Liquidity. Tokenization can increase liquidity in the real estate market, as digital assets can be easily and quickly sold on the secondary market.
  • Transparency and security. The use of blockchain technology can make the process of buying and selling real estate more transparent and secure. All transactions and changes in ownership can be recorded on the blocks of the network, allowing market participants to verify the history of the property.
  • New opportunities for investors. Tokenization gives birth to new investment strategies and embeds real estate in the world of digital economy.

All in all, one upside. Digitalization and blockchain can change most, if not all, of the sphere’s flaws. As tokenized real estate grows in popularity, it could lead to a significant transformation of the market, making it more accessible, liquid and transparent. And this process is already happening. Already today there are projects that deal with digital real estate, and Home Key is one of them.

History of Home Key: from infrastructure projects to blockchain real estate

Home Key’s story began in 2012. HK did not immediately become a blockchain project. Initially, it was an ordinary company that was engaged in the construction of houses, premises and large architectural projects. By 2015, equipment was purchased, Eurozone permits and licenses were obtained, and long-term contracts with contractors and material suppliers were signed.

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In 2017, the project expanded to the Belarus market and in 2018 to Ukraine. A plant for the production of CLT panels was also launched. In 2019, the company entered the Kazakhstan market by opening an office and launching a reinforced concrete plant. In 2020, the project entered the Russian market, where several offices were opened. In 2021, the technology of 3D printing of houses was mastered and an affordable housing program was developed.

The direction of tokenized real estate was launched in 2022. In the same year, the product “Stone House for the price of an apartment” was launched. Today, Home Key offers to get a finished house in a year at a price comparable to the cost of an apartment. This is possible thanks to an advanced economic model, the use of modern construction techniques and its own production of building materials.

In the coming years, the company plans to fully digitize its business using blockchain and smart contracts, create a DeFi platform, DEX-exchange, gamification of the housing lottery and launch the Real Estate Metaview.

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Auteur : Saifedean Ammous, expert en économie des crypto-monnaies.

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