🚩2) Real Estate Infrastructure

In a business model combining real estate and NFTs, real estate infrastructure includes elements related to the physical assets of the existing real estate market (real estate assets, legal systems, management systems, etc.). This infrastructure is highly complex, requiring consideration of various legal, technical, and economic factors when combined with NFTs as digital assets. Real estate infrastructure traditionally has a vast scale, particularly including urban development, large commercial real estate, the housing market, and commercial property management.

1] Physical Scale of Real Estate Assets

The global value of real estate assets was estimated at around $326 trillion in 2022. Residential real estate holds the largest share, followed by commercial and industrial real estate. Commercial real estate, including offices, retail spaces, logistics centers, and industrial facilities, represents a significant portion of the global real estate market. These assets can be used for ownership division, digitalization, and attracting global investments through NFTs. Integrating real estate NFTs into the global housing market provides small-scale investors with opportunities to access large real estate assets. The Korean real estate market is also valued at approximately KRW 1,000 trillion, with significant assets concentrated in Seoul and the metropolitan area. Korea’s commercial, residential, and industrial real estate sectors already have high asset values, making them well-suited for digitalization through NFTs.

2] Legal and Regulatory Infrastructure

In businesses combining real estate and NFTs, each country’s real estate ownership and registry system plays a critical role. Traditionally, real estate ownership is recorded and managed in the property registry, and linking this ownership record with NFTs is key. Some countries are already digitalizing real estate ownership records, making it possible to integrate these systems with blockchain-based NFT systems. For example, blockchain can be used to verify real estate ownership and issue it as NFTs. Businesses integrating real estate and NFTs are still subject to each country’s legal regulations. Issues such as ownership rights, investor protection, and taxation must be resolved, and many countries are working on relevant legislation to legally recognize blockchain and NFTs.

3] Real Estate Management Systems

Large properties are managed through Property Management Systems (PMS), which support maintenance, rental management, and contract management of various real estate assets, such as commercial buildings, residential complexes, and resorts. These systems can integrate with NFTs and blockchain to provide functions such as ownership management, rental income distribution, and contract automation. IoT (Internet of Things) technology is being introduced in real estate management, automating building energy management, security, and maintenance. Combined with NFTs, these systems can more efficiently manage the value of real estate.

4] Financial and Funding Infrastructure

Real estate infrastructure is closely tied to the financial system, with large funding requirements, especially in real estate development and sales. Real estate projects operate by securing funds through loans, REITs, or real estate funds, using assets as collateral. By tokenizing real estate ownership or shares as NFTs, investors can secure funding or liquidity through blockchain rather than traditional financial methods. Tokenized real estate assets allow small investors to participate in large real estate projects through crowdfunding, changing the existing asset ownership structure and increasing investment accessibility.

5] Real Estate Transaction Infrastructure

Traditionally, real estate brokerage was based on face-to-face transactions, but real estate sales and rental contracts are now increasingly digitalized through online platforms. When real estate is integrated with NFTs, these digital brokerage systems can become even more automated and efficient. Processes such as property search, transactions, and contract drafting can be handled on NFT-based platforms, with smart contracts automating real estate transaction procedures. This reduces transaction costs and increases transparency in the transaction process.

6] Real Estate Data and Analysis Infrastructure

Data analysis plays a crucial role in the real estate market, used for market trend analysis, price fluctuation predictions, and demand forecasting. This data is essential for evaluating the value of real estate assets and aiding investment decisions. Using NFTs and blockchain, real estate transaction records can be securely stored and analyzed to generate various insights. Recording transaction details on the blockchain enables transparent access, providing highly reliable data.

7] Liquidity and Global Accessibility

The traditional real estate market has low liquidity, making it time-consuming to sell or liquidate assets. However, tokenizing real estate as NFTs significantly increases liquidity by enabling immediate transactions. This provides a solution to structural issues in the real estate market. Real estate NFTs offer cross-border investment opportunities, allowing foreign investors to own property shares via blockchain networks. This expands the global real estate investment market.

Real estate infrastructure for integrating NFTs is built around physical assets (residential, commercial, industrial real estate) and is already vast globally. Legal systems, financial infrastructure, asset management systems, and transaction platforms can enhance the efficiency and transparency of the real estate market when integrated with NFTs. The future of real estate infrastructure, combined with NFT technology, holds significant potential to increase liquidity, expand global investment opportunities, and create a more transparent and efficient real estate market.