Real estate tokenization with great opportunities in Latam
Projects have been developed successfully and in parallel there has been a greater adoption of the technology and the business model by investors.
BY JULIO FERNANDEZ
CATEGORY: REAL ESTATE MARKET PUBLISHED: JANUARY 11, 2023
A regulation is required for real estate tokenization in Latam.
Real estate tokenization is a new tool that allows developers to obtain greater liquidity and potentially, by allowing the entry of small investors, increase the volume of business.
However, at the Latin American level, tokenization in Real Estate is at an early stage, it could be said that it is in a discovery phase, but with great potential.
In the opinion of Ignacio Alonso, Coo of Moneyfi Technologies LTD, developer of Datium IntelliHealth, “in certain higher-income countries, for example Mexico and Argentina, projects have already been developed successfully and in parallel there has been a greater adoption of technology and the business model on the part of investors that drive the acceptance of this tool throughout the region”.
He outlined that the year 2022 was presented as the year of inflection, where marked growth was expected but different circumstances undermined market confidence.
In an interview with Real Estate Market, he commented that by 2023, we will see how tokenization in the sector will grow considerably, for two fundamental reasons:
“On the one hand, due to the change of investors from the world of cryptocurrencies to an investment model less exposed to the fluctuations of a mostly speculative market; and on the other, due to the access of conventional investors who have overcome the barrier of “distrust “in this new investment model”.
He reiterated that “the prospects are very positive. This year presents itself as a period of good opportunities where big players in the sector are already beginning to make the first moves to position themselves and the interest of both developers and investors is increasingly noticeable. “
He added that if the conditions are right, Latin America has the potential to be a leader in the use of these mechanisms, but without forgetting that a specific and harmonized regulation is necessary at the regional level.