Distributed Ledger Technologies for the Real Estate Market

Chapman, Anthony; Liu, Nan; Duncan, Bob

doi:10.15396/eres2019_340

Cited by 3 publications

(4 citation statements)

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“…Real estate investment is the most significant global wealth reserve and a vital component of the worldwide economy (Saull et al 2020). Real estate and property rights transactions are intricate and drawn-out processes requiring the approval of numerous agencies, including appraisers, lenders, attorneys, and agents (Liu et al, 2020). As a result, real estate practice and the purchase process are marked by numerous challenges.…”

Section: Challenges In Real Estate Practice Threatening Its Sustainab...mentioning

confidence: 99%

Leveraging on Blockchain Technology for the Sustainability of Real Estate Practice: A Systematic Review

Oluwumni

2023

JARER

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Blockchain technology (BCTech) in real estate is innovative and full of potential, even though it is not widely accepted and scarcely applied. To establish the potentials of BCTech in the real estate sector, this study used a systematic review of the literature found in Researchgate, ScienceDirect, Semantic Scholar, IEEE Xplore, and Google searches. This was done with a view to ascertaining the current challenges in real estate practice and the potential benefits of applying BCTech to mitigate or eliminate these challenges. A total of 99 publications from 2016 to 2022 were examined, and their contents were assessed using descriptive statistical tools and presented in charts and tables. Based on the review, BCTech can provide platforms for tokenized ownership, smart contracts, quick transactions and cost reduction. Moreover, the outcome also showed that some countries have applied BCTech to land registration, with a few others to record keeping and real estate tokenization. In addition, the majority of the research efforts (55%) were from journal outlets published between 2020 and 2022. Finally, BCTech offers secure and transparent platforms for real estate stakeholders; hence, they have a lot to gain by encouraging and embracing its adoption. The study concluded that though BCTech is not yet widely used, it has a lot of potential to offer in terms of the sustainability of the real estate industry.

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Section: Challenges In Real Estate Practice Threatening Its Sustainab...mentioning

confidence: 99%

Leveraging on Blockchain Technology for the Sustainability of Real Estate Practice: A Systematic Review

Oluwumni

2023

JARER

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“…Most of the previous literature on real estate tokens is very theoretical describing the conceptual procedure (Gupta et al, 2020;Liu et al, 2020a;Markheim and Berentsen, 2021), financial application and first deals (Baum, 2021), legal aspects (Konashevych, 2020), and technical aspects (Gupta et al, 2020). Markheim and Berentsen (2021) present descriptive data based on a small sample for real estate tokens in the USA and Switzerland and also highlight the disadvantage of high energy consumption by using PoW as a consensus mechanism.…”

Section: Idea Definitions and Previous Researchmentioning

confidence: 99%

“…So far, the research on real estate tokens is either theoretical and conceptual on how they are structured and may influence the market in the near future (e.g., Liu et al, 2020a;Baum, 2021;Markheim and Berentsen, 2021) or with an empirical analysis of the diversification of the token holders' portfolios, determinants of security token offerings (STOs), secondary market trading, and daily aggregated capital flows (see, Swinkels, 2023;Kreppmeier et al, 2023) While I want to contribute methodologically to open up avenues for constructing real estate token indexes for this new type of fractional real estate investments, I also aim at contributing to the more general literature on real estate investment analysis using empirical data. My study sample covers around 40,000 daily pricing data for 180 real estate tokens in the U.S. over the period from 2019 to 2022 that I averaged to monthly index values for an equal-weighted index and value-weighted index.…”

Section: Introductionmentioning

confidence: 99%

Real Estate Tokens - Return-Risk Analysis of the First Years

Zouari,

Nasreddine

2023

29th Annual European Real Estate Society Conference

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This study analyses the return-risk metrics of real estate security tokens as digital representatives of fractional ownership in physical properties. I use around 40,000 daily pricing data for 180 real estate tokens in the U.S.A. over the period from 2019 to 2022 and construct a monthly equal-weighted index and value-weighted index. These indexes are used in univariate and multivariate analyses (correlation, regressions, and principal component analysis) to see whether the tokens' returns follow the performance of the underlying housing market, securitized real estate market, or sentiment on the crypto market. The token indexes show no clear similarity to the cryptocurrency or housing indexes but represent their own return-risk pattern. This is confirmed in multivariate analyses. The principal component analysis shows that the debt and macroeconomic factors are the major drivers and the crypto market and housing market are of minor importance to explain the variation of the assets' returns. This absence of a linear relationship with other assets makes real estate tokens attractive to use as diversifiers in a multi-asset portfolio.

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“…The literature on real estate tokens is to date mainly of a theoretical nature regarding the general procedure (Gupta et al, 2020;Liu et al, 2020a;Markheim and Berentsen, 2021), financial application (Baum, 2021;Markheim and Berentsen, 2021), legal (Konashevych, 2020), and technical aspects (Gupta et al, 2020). Markheim and Berentsen (2021) present descriptive data based on a small sample of real estate tokens, where they point, despite the many theoretical advantages of tokens, towards challenges, such as regulatory uncertainties and relatively long transaction times.…”

Section: Introductionmentioning

confidence: 99%