Key takeaways:

• Over a third of U.S. citizens view real estate as the best long-term investment despite rising prices making ownership increasingly difficult.
• Blockchain technology enables fractionalization of real estate assets, lowering investment barriers and offering more accessibility.
• Blockchain Property Gate’s BPGT security token aims to democratize real estate investment, allowing for passive income and easier property ownership.

Real estate has been historically known as the investment sector with the lowest risk ratio at comparatively high long-term returns. Taking a look at the prices of real estate and their development over the last century, this comes as no surprise.

“Between 1940 and 2000, the average adjusted for inflation price of a home in the US has increased by 4 times.” – Excerpt from the CNBC article

The reasons for this reality are multifold – for one, the increasing world population is naturally calling for a higher demand for housing, which drives prices up unless it’s met by an equal increase in new development projects. An additional factor is the increasing digitization and resulting development of the IT sector, which has led to a skyrocketing number of tech companies. These are concentrated in big cities, leading to the need for the workforce to relocate to metropolitan areas. Because space is limited, it’s becoming more and more scarce, which drives the price of land and, by extension, the price of real estate assets.

The rising prices have thus made real estate the most sought-after option for investors no matter their bank account – in a study among US citizens reported by CNBC, over one-third of respondents chose real estate as the “best long-term investment possible.”

However, the rising demand and prices in the real estate sector are not without their adverse consequences. The World Health Organization (WHO) considers affordable housing a basic human right; however, with rising prices, the dream of owning your own home becomes more and more out of reach. Without a bank loan, chances are you are not able to afford it – and despite the fact that mortgages were quite low some years ago, the dynamic macroeconomic situation is causing concern due to rising interest levels. This issue is also prevalent in some of the world’s most developed countries – in Germany, for example, home ownership in 2022 was at its record low of just 46.7%.

Real estate investors are faced with a similar issue – the rising capital requirements make it more difficult for retail investors to invest in real estate. There are very few options in the likes of REITs (real estate investment trusts) and investment pools. Investors are thus stuck either with banks or have to rely on the availability of their own funds at times of skyrocketing prices, which sets the bar higher every year.

Blockchain technology: A new chapter for real estate

With the emergence of blockchain technology, a new chapter for real estate began. The innovative solution allowed for the fractionalization of real estate assets through their tokenization. For the first time, an otherwise expensive asset that could be worth millions of dollars can be broken down into multiple smaller parts and distributed among many investors at the same time. This provides an accessible source of funding for real estate companies by making it easier to find investors and dramatically lowers the otherwise high capital requirements everyone has to face when getting into real estate investments.

Read more: What Are Real World Assets (RWAs) in Crypto?

The advantage of blockchain lies within its inherent transparency and the availability it offers, allowing for an immutable proof of ownership of the fraction of the asset, which also has seamless transferability. The ownership of a fraction of the real estate is recorded on the blockchain and cannot be faked or erased. At the same time, the holder of the asset can transfer it to another investor at any time.

Blockchain Property Gate: Democratizing the access to real estate

A new emerging project on the blockchain real estate scene is utilizing blockchain technology with the plans of becoming the catalyst for a much-needed change in the current harsh reality, which is the low rates of home ownership and high entry capital requirements for investors.

Read more: What is Digital Real Estate and Is It Worth Investing in?

Blockchain Property Gate is planning to tackle the issues through the BPGT security token, which represents real estate assets and gives its holders access to recurring passive income through rental income and the sale of properties. The project utilizes a tried and tested methodology developed over the last two decades that consists of real estate selection, acquisition, renovation, and resale. The self-reinforcing cycle aims to become the main growth factor behind the project, which envisions a new future for the real estate sector – one where everyone can own a home without becoming dependent on banks and invest freely in real estate no matter the size of their wallet.

Blockchain Property Gate is currently preparing for a Security Token Offering. Early adopters are incentivized with exclusive discounts during the private sale. Only whitelist members will be eligible to take part in the first sale round of Blockchain Property Gate. The current spots are limited, so make sure to head over to the website and subscribe for the early adopter list while they are still available: https://blockchain-property-gate.com/