UAE firm rolls out new property tokenization platform

Arms & McGregor International Realty, the Dubai-based real estate company behind Real Estate 6.0 (the new asset class in Real estate), is taking the GCC property sector to new highs with the launch of the region’s first real estate tokenization platform directly connected to a DeFi liquidity pool. Powered with innovative technology developed by Blocksquare – one of Europe’s leading companies in the space of tokenization of real estate – the new platform will open the way for trading, owning, and liquidating property assets through trading digital tokens.

With the increasing number of transactions that the UAE real estate sector registered over the past few months, Arms & McGregor International Realty eyes over 5 billion USD in liquidity to the property market in GCC by 2024. The move by the UAE firm comes as a stepping stone in the direction to make the liquidation of the asset class possible and transparent, while automating the transaction process.

Denis Petrovcic, the Co-Founder & CEO of Blocksquare, announced the venture by saying “With this partnership, property owners in the GCC will for the first time gain the ability to extract liquidity from DeFi markets simply by uploading their real estate property to the blockchain. It also opens up a new liquidity generator to fund ambitious megaprojects as traditional funding may fall short and not be as feasible.” Petrovcic added “Since 2018, Blocksquare’s focus has always been to offer clients the best blockchain infrastructure for the tokenization of real estate assets. With our real estate tokenization protocol launched in the region through Arms & McGregor International Realty, entrepreneurs can start digitizing real estate assets at a fraction of the cost.”

Real estate is a global industry of around 300 trillion USD which will benefit from such an approach, but at the same time will give a new dimension to blockchain and tokenization.

Makram Hani the Founder & CEO of Arms & McGregor International Realty, said, “The GCC real estate sector especially in the UAE has proved its resilience and overcame major challenges since the 2009 financial crisis and the recent pandemic. With the launch of the new property tokenization platform, we aim to revolutionize the way property developers fund and sell projects; that will enable them to retain control over their projects. Property owners will also be able to sell portions of their property and liquidate the necessary rather than the whole asset. “

The new platform reflects Arms & McGregor International Realty’s attempt in adopting new technologies and implementing tokenization to the real estate sector, as released earlier through the company’s Real Estate 6.0 asset class. Real Estate 6.0 is the new asset class in real estate. Defined by Makram Hani as an asset that any one can trade, wherever you are, whenever you wish, and for the amount you choose to invest.

In the UAE, new regulations are being regularly introduced to boost the real estate sector. Working closely with key public and private stakeholders to adopt the new platform, Arms & McGregor International Realty and Blocksquare believe that tokenization will mark the start of a new era for the real estate sector, where each property will have its own smart contract and the evaluation of properties is driven by an open secondary market rather than paper-based reports. By expanding its operation into the GCC region, Blocksquare aims to support innovative real estate companies integrate blockchain technology and tokenization into their businesses.

Although the transition may seem complex at first glance, it is fairly straightforward. The reality is that these solutions are the present and no longer the future. Hani in his explainer video clears that they are recreating nothing, rather than getting methods used traditionally with other asset classes similar to equities and doing the obviously needed in the biggest of the asset classes to create real estate 6.0 as an Ultra asset class. That is why Petrovcic believes, more and more real estate properties will move “on-chain” in some form or another, adding that this trend will increase demand for companies such as Blocksquare to facilitate the process in a safe and standardized manner through tried protocols and infrastructure.

Giving the public the ability to easier reach, transparently seeing all the transactions that have ever taken place in history on that property, and all the orders currently placed, in seconds rather than in days. Giving tenants the ability to purchase 10% of a property to reduce the rental burden, start building equity without overextending to take a mortgage and add all the cash to purchase the whole house.

Hani mentioned “Through our collaboration with Blocksquare and other partners we intend to get other stake holders in the market to launch their own platform and grow the ecosystem that is being built. We not only want to launch our own platform but also help other market players launch their white label platforms and tokenize their own property.”

“Real estate is the biggest asset class in the world, at the same time, it’s one of the most illiquid investments one can make. While it is time consuming and extremely capital intensive, technology will address such challenges. With the emergence of smart contracts and blockchain, we now have the ability to create autonomous agents and protocols that can provide a transparent service for everyone involved in the lifecycle of a real estate transaction. Transfer of ownership will inevitably move online, however, the first step will happen on the investment part, as it is the one that requires the least input by regulators and can be fully executed without significant changes to current regulations,” Petrovcic concluded.

The platform is days from being open to the public, although Arms & McGregor International Realty has opened to major stakeholders and family offices.