Arms & McGregor International Realty, the Dubai-based real estate company behind Real Estate 6.0 (the new asset class in Real Estate), has launched the region’s first real estate tokenization platform directly related to a DeFi liquidity pool.
With the rising figure of deals that the UAE real estate sector recorded over the last few months, Arms & McGregor International Realty eyes over $5 billion in liquidity to the property market in GCC by 2024. The move by the UAE firm comes as an initial step in the direction to make the liquidation of the asset class possible and transparent while automating the sale process.
Denis Petrovcic, the Co-Founder & CEO of Blocksquare, said: “With this partnership, property owners in the GCC will for the first time gain the ability to extract liquidity from DeFi markets simply by uploading their real estate property to the blockchain. It also opens up a new liquidity generator to fund ambitious megaprojects as traditional funding may fall short and not be as feasible.
“Since 2018, Blocksquare’s focus has always been to offer clients the best blockchain infrastructure for the tokenization of real estate assets. With our real estate tokenization protocol launched in the region through Arms & McGregor International Realty, entrepreneurs can start digitizing real estate assets at a fraction of the cost.”
Real estate is a worldwide industry of about 300 trillion USD which will gain profit from such an initiative, but at the same time will give a new way to blockchain and tokenization.
Makram Hani the Founder & CEO of Arms & McGregor International Realty, said: “The GCC real estate sector especially in the UAE has proved its resilience and overcame major challenges since the 2009 financial crisis and the recent pandemic. With the launch of the new property tokenization platform, we aim to revolutionize the way property developers fund and sell projects; that will enable them to retain control over their projects. Property owners will also be able to sell portions of their property and liquidate the necessary rather than the whole asset.”
The new platform shows Arms & McGregor International Realty’s attempt in choosing new technologies and implementing tokenization to the real estate sector, as provided earlier through the company’s Real Estate 6.0 asset class. Real Estate 6.0 is the new asset class in the property. As per Makram Hani an asset that anyone can trade, wherever you are, whenever you wish, and for the quantity, you choose to invest.
In the UAE, new guidelines are in effect regularly introduced to help the land area. Working closely with key public and private stakeholders to embrace the new stage, Arms and McGregor International Realty and Blocksquare accept that tokenization will check the beginning of another period for the real estate sector, where every property will have its own smart contract and the assessment of properties is driven by an open secondary market instead of paper-based reports. By extending its activity into the GCC region, Blocksquare expects to help innovative real estate companies coordinate blockchain innovation and tokenization into their organizations.
Although the change may appear to be complex at first glance, it is genuinely clear. The reality is that these solutions are the present and no longer the future. Hani in his explainer video clears that they are reproducing nothing, instead of getting techniques utilized generally with other resource classes like values and doing the clearly required in the greatest of the resource classes to make real estate 6.0 as an Ultra resource class. That is the reason Petrovcic accepts, increasingly more land properties will move “on-chain” in some structure or another, adding that this pattern will build interest for organizations like Blocksquare to work with the interaction in a protected and normalized way through attempted protocols and infrastructure.
Giving the public the ability to easier reach, straightforwardly seeing all the transactions that have at any point occurred in history on that property, and all the orders presently positioned, in seconds rather than in days. Enabling tenants to buy 10% of a property to diminish the rental weight, start building equity without overextending to take a home loan, and add all the money to buy the entire house.
Hani mentioned “Through our collaboration with Blocksquare and other partners we intend to get other stakeholders in the market to launch their own platform and grow the ecosystem that is being built. We not only want to launch our own platform but also help other market players launch their white-label platforms and tokenize their own property.”
“Real estate is the biggest asset class in the world, at the same time; it’s one of the most illiquid investments one can make. While it is time-consuming and extremely capital intensive, technology will address such challenges. With the emergence of smart contracts and blockchain, we now have the ability to create autonomous agents and protocols that can provide a transparent service for everyone involved in the lifecycle of a real estate transaction. Transfer of ownership will inevitably move online, however, the first step will happen on the investment part, as it is the one that requires the least input by regulators and can be fully executed without significant changes to current regulations,” Petrovcic concluded.
The platform is days from being available to the public, despite the fact that Arms and McGregor International Realty has opened to significant partners and family workplaces, an organization proclamation said.