October 2, 2019 · 2 min read
Real estate tokenization
The AnnA Villa, a €6.5 luxury property in Paris is being tokenized. This is the first-ever real estate tokenization deal in Europe. With its capital city at the head, France joins the race to tokenize real estate. The AnnA Villa will be tokenized on Ethereum, while the French blockchain investment platform Equisafe will manage the transaction.
To celebrate the groundbreaking transaction we have taken a deep dive into real estate tokenization.
Having been touted as an industry ripe for innovation, the real estate sector is one of the top 10 fastest growing sectors in blockchain as it continues to disrupt the traditional securities industry.
In the blockchain utopia, gruelling processes of due diligence, notarization and recording ownership can be done more quickly and accurately. The fractional and cross-border ownership models of tokenized property eliminate the industry’s low liquidity and high entry barriers.
At Novum Insights, we’ve conducted a deep dive into real estate industry as a part of our Future of Crypto Report. We have looked at 168 real estate tokenized projects and witnessed active capital flow into proptech and tokenized assets in past two years.
98% of the total investment was raised in 2017 and 2018
As of January 2019, real estate blockchain companies have raised $397 million
Harbor which provides a platform and compliance protocol to standardize the way private securities are issued and traded on blockchains, raised $28 million
Securitize which digitizes legacy securities with blockchain raised $12.75 million
More than $640 million was invested in companies developing technology to bring the digitization of assets and securities into the mainstream
Here are some exciting deals
In January 2019, Elevated Returns raised $18 million via security token offering on a luxury resort in Aspen, Colorado
Inveniam Capital Partners is undertaking $260 million worth of real estate tokenization in the US, including the WeWork building in Miami
Propellr and Fluidity partnered to tokenize $30 million property in the East Village, Manhattan on Ethereum last year
Elevated Returns plans to tokenize $100 million of real estate in Thailand this year
With some significant projects that have successfully formulated in the past year, we've been busy mapping out the current partnership landscape.