Removal of indexation may hasten Big Real Estate players' shift towards tokenization. With the recent removal of indexation benefits, long-term real estate investments are taking a hit. These investments were usually considered stable, but now, with higher capital gains tax, investors might look for options that are more liquid and flexible when it comes to Real Estate(which is not for residential purpose). Let me explain why I think this may happen Since there’s no more indexation benefits, holding real estate long-term isn’t as appealing. The traditional market is slow, but tokenization can speed things up and make it more attractive. Fewer people would want to invest a large amount of money in a single real estate asset if it's only for the purpose of investment. This could lead to a smaller investor base for certain property types. Here is why the big players would like tokenisation: Enhanced Liquidity: Tokenization allows fractional ownership, making it easier to trade on secondary markets, similar to stock investments. Broader Investor Base: Lower investment thresholds democratize access to high-value real estate, attracting retail investors and increasing capital inflow. Who among the big players may lead this transition? Traditional Real Estate Platforms: Platforms which already deal with fractional ownership, are well-positioned to adopt tokenization to enhance liquidity. PropTech Startups: Startups focused on innovative real estate investment solutions, are likely to embrace tokenization to offer more flexible investment options. Real Estate Developers: Large developers with significant commercial real estate holdings might explore tokenization to attract retail investors and enhance liquidity. Financial Institutions & REITs: REITs and financial institutions with substantial real estate portfolios could explore tokenization to offer new, innovative investment products appealing to modern investors. It may be too soon to predict the trend, but if the sector does not adapt and innovate soon, there will be an impact that will last for a generation. Tokenization offers a promising alternative, providing liquidity, broadening the investor base, and offering faster exit options, mitigating the impacts of the new tax regime. #RealEstate #Tokenization #Investment #PropTech #FractionalOwnership #Finance #Innovation #RealX
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The lower middle-market real estate sector offers unique opportunities for investors willing to navigate its distinct challenges. Unlike large-cap properties, which are influenced by global market dynamics such as corporate mergers or economic shocks from abroad, lower middle-market assets are often deeply tied to the local or regional economies they serve. This connection to the real economy brings a level of stability and predictability, making it a compelling investment avenue. For instance, middle-market tenants typically consist of growing regional businesses.These businesses expand cautiously and sustainably, often focusing on long-term viability rather than speculative growth. A measured approach reduces the risk of sudden lease terminations or downsizing — critical challenges in large-cap properties affected by events far removed from their local markets. Moreover, the lower middle market provides investors with the advantage of foresight. Trends in the large-cap market often act as early warning signals, offering a two-year lead time to identify potential challenges or opportunities. Observing these trends allows middle-market investors to proactively position their portfolios to weather market cyclicality, further enhancing stability and returns. A thoughtful balance of risk and reward is critical to success in this sector. This begins with investment principles focused on maintaining a low-cost basis. Acquiring properties at favorable prices allows for higher yields, generating strong cash flow even in uncertain market conditions. Ensuring multiple exit strategies — such as selling parts of a portfolio, full recapitalization, or refinancing — further mitigates risk, offering flexibility in up and down markets. Capital structure also plays a significant role in managing exposure. Lower middle-market investments often avoid returns driven solely by excessive leverage. Instead, they emphasize conservatively matching assets and liabilities to ensure long-term stability, reducing exposure to volatile interest rate environments while maintaining steady returns for investors. For example, investments in cost-effective storage facilities that cater to niche markets can yield high returns by addressing durable demand without overpaying for features unnecessary to the core business. The lower middle market’s ability to deliver consistent returns lies in its alignment with real economic activity and its thoughtful, proactive approach to balancing risk and reward. How can you adapt your strategies to capitalize on emerging opportunities without compromising stability?
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🚀 Leading the Revolution in Real Estate Investment with Fractional Ownership 🏡 We’re thrilled to be featured in Andrew Stanton’s latest article on PROPTECH-X Proptech & Property News , where our founder, Gregory Brenig, shares his insights on the transformative potential of fractional real estate and how Block Tech is at the forefront of this revolution. 🙌 At Block Tech, we’re on a mission to make real estate investment accessible to all. Our innovative approach leverages cutting-edge technology to break down traditional barriers like high capital requirements and complex management, allowing individuals to invest in property starting with as little as €10. 🌍 Highlights from the article: The power of fractional real estate to democratize investment opportunities. The critical role of PropTech in delivering scalable, transparent, and efficient solutions. How our White Label platform empowers partners to launch their own investment platforms in just a few weeks. 🔑 Takeaway: The future of real estate is not just about investment; it’s about empowerment through technology. Block Tech is proud to lead the charge in reshaping the industry and opening doors to new possibilities for investors worldwide. 📖 Read the full article here: PropTech-X: What is Fractional Real Estate? A special thank you to Andrew Stanton for shining a spotlight on the exciting innovations happening at Block Tech and the opportunities we’re creating for investors and partners alike! #FractionalRealEstate #PropTech #Innovation #BlockTech #RealEstateInvestment #DemocratizingRealEstate #RealEstateTechnology https://lnkd.in/dz6Cyyn6
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Why Real Estate Brokers Are Here to Stay – What PropTech Companies Miss About the Industry In recent years, PropTech companies have promised to "revolutionize" real estate, sidelining traditional brokers as outdated middlemen. But despite flashy tech and heavy investment, brokers remain indispensable. Why? It’s simple: Real estate is about people, not just transactions. PropTech simplifies the process but overlooks the emotional, complex nature of buying and selling property. Brokers bring empathy, deep local market knowledge, and the personal touch no app can replace. Why do consumers still choose brokers? Because they want an expert, not an algorithm, especially when things go wrong. So, if PropTech is truly the future, why does it keep burning investor money? Read the full article to explore why brokers are here to stay and how PropTech companies need to rethink their approach. https://lnkd.in/g98s_eUS
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Strong words have been put up by Chairman, National Association of REALTORS® Mr Sumanth sir. Prop-tech companies can use a collaborative approach to grow the business as Cake is too big to eat. having seen a prop tech business growing closely and then getting associated with brokerage angle just to increase their cash flow says a lot about Indian market and it's acceptable nature to 100% tech platforms. Although it may look lucrative for companies to use their investors and funders money and survive but I have not seen any one thriving on this business model. The journey is long and the destination is far. Till then, everyone needs to survive and run the show. #realestate #brokers #agents #industry #rera #startup
Chairman - National Association of Realtors India | Managing Partner - Bharataland | Founder - Realestta | Managing Director - India Institute of Real Estate | XLRI Alumnus
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This article shares the concept of how you can invest in real estate without needing a large amount of capital upfront. These new platforms allow you to purchase fractional shares of properties, which is beneficial because it enables investment even with limited funds. However, there are some challenges that come with it, such as the difficulty of quickly selling your shares if necessary, and navigating regulatory complexities. Nonetheless, the article suggests that improvements in technology and regulations may get better over time. #FractionalShares #Property #RealEstate
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An exceptionally thought-provoking analysis on how this VC views the NAR settlement ruling as a pivotal force for transformation, especially regarding how technology will streamline and reduce costs in the real estate purchasing process, thereby making homeownership more affordable. Do more for less and #buildwithbildhive #PropTech #RealEstate #PreConstructionRealEstate
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Proptech I Fintech - Its Our Moral Responsibility to Become Rich.
4moThis May Happen : As, Without the indexation benefits, holding real estate for the long term becomes less appealing - because, traditional real estate market is slow-moving, but tokenization offers a solution by speeding up transactions and making investments more attractive. The removal of indexation benefits means fewer investors will be willing to tie up large sums of money in a single real estate asset solely for investment purposes. This could lead to a reduced investor base for certain property types.