A Multi-Trillion Dollar Rubik's Cube
Institutional Investors are trillions of dollars underinvested in Real Estate – Can next generation digital securities (securities tokens) backed by real estate assets unlock value and fuel supply in the future?
In this second in our series of articles on the tokenisation of real estate investment, we take another look at the size and shape of the real estate sector and reveal some underlying facts that are under-appreciated if not totally unknown – even to many professional real estate investment practitioners. The conclusion will be, once again, that there’s an enormous, multi-trillion-euro opportunity for a new investment structure that solves a complex puzzle of regulation, tax, investor preferences and real estate industry fundamentals.
Did you know that real estate is the largest single asset class in the world? And that it’s not even a close competition? It is maybe not surprising that these facts are unknown, given that the data is buried in obscure and incomplete national income accounting statistics. But its only buried one level deep, so it’s somewhat disappointing that these facts aren’t more widely appreciated. The reality is that 60-80% of the gross capital stock of most OECD countries is real estate. Put simply, most of the productive assets of most countries is real estate. It’s not in advanced manufacturing equipment. It’s not in intellectual property. It’s not in high technology of one sort or another. It’s in seemingly boring, old world, hard assets – buildings.
Read full article from Stephan Rind