How do NFTs work in Real Estate?

“NFTs” is the word that is buzzing around everywhere. You will see sponsored ads on social media platforms like Facebook and Instagram. These advertising agencies are smart enough to persuade you to join the NFT workshops by creating FOMO. It is natural to feel overwhelmed with so much information around. 

If you are a true newbie to NFTs then, this article is for you. NFTs are not rocket science, here’s a simplified explanation. NFTs is an acronym for a non-fungible token that stores various real-world tangible stuff digitally. NFT’s can be anything like artwork, PNGs, JPEGs, screenshots, real estate, videos, stories, and even memes. Literally, anything can become an NFT. Most importantly, every NFT is unique and there is no possible way for forgeries. NFTs store information in a blockchain where the data is stored. 

NFTs have become the new cool. The secret to winning the NFT game is to create a community. NFT is like the next big influencer. Most of them want to be the first ones in the market. The next raging question is if NFTs are cryptocurrencies. They are not. Cryptocurrencies are digital money. There are distinct types of digital money, one predominant cryptocurrency is Bitcoin. Ethereum is another form of cryptocurrency, but what sets it apart is its technology. NFTs are bought using Ethereum. Each Ethereum has a value between 3000-3100 Us dollars which is approximately Rs. 2,45,944.70 in India. Its price value keeps fluctuating. 

NFT’s in Real estate:

The NFTs in Real estate has two types of tokenization, the former is The Entire Asset (EA) and the latter is fractional ownership (FO). FO is analogous to a crowdfunding platform that allows investors to buy shares. The number of tokens depicts the shares in the project. EA works only when the property deed is converted into a real NFT. This is comparatively difficult to accomplish and steps are taken to continue to work in this field. 

So how do NFTs work in real estate?

Real estate NFTs are just like any other NFT. They are purchased using Ethereum or through a digital wallet. When you make an investment in FO it acts like stocks and that they depict a share of a real estate project instead of a virtual or single item. The profits are then paid like a share-based investment. The real estate NFTs can be sold anytime you like, there is no severability. Few crowdfunding platforms require you to hold the share for a certain period or till it gains popularity.

Now you understand what real estate NFTs are and how they work. NFTs will take some more time to mature in the market. But if you are planning to make a real-time investment in real estate, then Bluejay is the best real estate developer in Bangalore. They have the finest residential plots for sale in Bangalore. If you are looking for new projects in Bangalore, then you are at the right place. Bluejay Uttar Premium Villa Plots are the best villa plots in North Bangalore - just 10 mins drive to the airport. Bluejay Aster Premium Villa plots are plots for sale in Bangalore South. They are embraced in the best locality with top-class amenities. Invest in your dream plot today with Bluejay.