Is tokenization coming to the real estate market?

tokenization of real estate | mortgage rate news

Is tokenization the future for the real estate market?

Tokenized real estate has started to gain adoption in the US over the past few years. Some real estate professionals have found that leveraging blockchain technology allows for secure transactions, additional transparency, and makes fractionalization of real estate assets possible.

While blockchain is still technically in its infancy, the use cases and capabilities are there to make real estate transactions quicker and easier. However, a regulatory framework that mirrors the safety and security the mortgage market currently has will need to be implemented before widespread adoption by major players is a possibility.

Are hotel-branded residences popular in the current real estate market?

In the last few years, real estate developed and sold by popular hotel brands has gained in popularity. Buyers recognize the brands of most high-end hotels, and associate them with luxury and quality.

In 2022, there were 38,900 branded residences across 200 developments in the US. That’s a 40% increase from 2010. Of those branded homes, roughly 80% are affiliated with a hotel brand. However, it’s not just hotel brands that are getting into the branded real estate game.

British auto manufacturer, Bentley, is working on a luxury condo development in Florida. Fashion brand, Diesel, is building a 159-unit tower in Miami.

If this trend continues, we could see even more corporate branding of real estate developments in the not-too-distant future. Imagine pulling into the garage at Nike Estates on Jordan Lane.

How did Chairman Powell’s testimony in front of the Senate go?

Chairman Powell faced the Senate on Tuesday. Powell didn’t really say anything remarkably unique or different than other statements he’s given in the past few months. He sees it as his job to combat inflation. He’s seen progress in his fight. He still has more work to do in order to get to 2% inflation.

We’ll know a lot more when we get additional jobs data this week and inflation data next week. Until we know more, mortgage rates could end up staying in a holding pattern at the current levels.  

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