Experts have urged Nigerians to embrace tokenisation in the real estate sector as it brings greater efficiency, higher security, and lower costs to the financial industry.
They say low advocacy on its benefits and the age-long absence of regulations that support such means of financing/ owning real estate triggered the low popularity of the investment model.
Speaking at a webinar entitled: “Providing Access to Funding for Institutional Real Estate Developers” organised by RedSwan CRE Africa, its Country Manager, Mr. Tunde Olasunkanmi, explained that tokenisation is fast becoming visible in Africa, and traditional real estate institutions are partnering with technology providers to explore the tokenisation of debt or equity.
Tokenisation is a process in which real estate assets are converted into digital tokens stored on a block-chain that allow digital ownership as well as transfer of fractional shares is still low. With a market size of around $200 million globally, real estate tokens are an increasingly popular investment and account for about 40 per cent of the digital securities market.
Olasunkanmi said securities laws and land registration systems need to be addressed for tokenised real estate to gain traction.
