Whether you’re saving to buy a house, waiting for mortgage rates to fall or planning a big move in the next few years, researching the market now can help you decide where to invest later.

“While no one can predict the market with absolute certainty, the patterns we’re seeing now offer some valuable clues,” said Yawar Charlie, estates director of Aaron Kirman Group at Christie’s International Real Estate and cast member of CNBC’s “Listing Impossible.”

Based on current market trends, GOBankingRates spoke with experts who shared which states to avoid buying property in the next five years and why.

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California

Stunning scenery, a vibrant culture and near-perfect weather make California so appealing, but the affordability is an issue.

“As a real estate broker in Los Angeles, I’ve observed some trends that suggest certain states might become less attractive for homebuyers over the next five years,” Charlie told us.

“It’s not just the high cost of living here that’s a problem. The state also struggles with issues like wildfires and droughts, which can make homeownership even more challenging and expensive,” he explained.

“Additionally, the tech boom, especially in areas like the Bay Area, has driven housing prices to astronomical levels, pushing many to seek refuge in more affordable states.”

Rachel Stringer, a Realtor at Raleigh Realty, added, “Demand continues to outpace supply, keeping inventory tight drastically.

“This supply crunch, coupled with slow wage growth, raises affordability concerns over time,” she explained. “As costs rise faster than incomes, keeping up with mortgage payments could become increasingly difficult.”

Florida

For many retirees, Florida is a sunny paradise, but one bad storm can quickly make things a nightmare.

“The state’s location makes it extremely vulnerable to hurricanes and rising sea levels driven by climate change,” Stringer told us.

“Serious considerations include rebuilding costs, disruptions and escalating insurance premiums due to storm damage. Coastal properties may lose substantial value if they become uninhabitable due to rising sea levels.”

Illinois

Known for its big cities and expansive farmlands, Illinois is a major manufacturing center for food, chemicals, rubber products and more.

According to Charlie, though, the state is in trouble:

“Illinois, and specifically Chicago, faces significant financial woes,” he said. “The state has some of the highest property taxes in the country, and Chicago is grappling with a high crime rate and budget deficits, leading to cuts in essential services and increased taxes. These financial strains make it difficult for residents to justify staying when they could find a safer and more financially stable environment elsewhere.”

Louisiana

With its reputation for good times, delicious food and rich culture, Louisiana is a state people enjoy. However, according to Tony Mariotti, founder of RubyHome, you might want to rethink real estate investments there.

“Louisiana is highly susceptible to climate change impacts, such as hurricanes and flooding. These risks can lead to higher insurance costs and potential property damage,” he said.

“The state also struggles with lower job growth and economic diversification, making it less attractive for long-term investments. Infrastructure issues add to the challenges of property ownership here.”

New Jersey

New Jersey is another East Coast state you might steer clear of when buying property.

“Besides the high property taxes, New Jersey is dealing with an exodus of major corporations, which impacts job availability,” Charlie explained. “The state also has some of the highest health insurance premiums in the country, adding another layer of financial stress for residents. Furthermore, the congestion and traffic, especially for those commuting into New York City, can be a daily frustration.”

New York

Another infamously high-priced state is New York, which Charlie revealed has major issues beyond the cost factor.

“Beyond the high property taxes and cost of living in New York City, there’s also the matter of aging infrastructure,” he noted. “The subway system, for example, has been notorious for delays and breakdowns, making daily commutes a headache. Plus, the pandemic has shifted many jobs to remote work, reducing the need to live in or near the city and prompting many to relocate to suburban or even rural areas.”

West Virginia

West Virginia is known as a coal country, but the industry is declining, which has  “economically devastated many parts,” Stringer said. “As jobs dry up, the population drains in these small towns, leaving little demand for housing. Homeowners may struggle to find buyers willing to pay a fair price.”

Source: Yahoo News

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Dubai conglomerate Al Habtoor Group plans to acquire commercial property in Europe this year as part of its expansion plans and expects 15 per cent to 20 per cent revenue growth across its businesses in 2023.

The family owned business, with interests in the property, hospitality, automotive, insurance, education and publishing sectors, is looking at countries near Hungary, including Slovakia, the Czech Republic and Romania to buy property, its vice chairman and chief executive Mohammed Al Habtoor told The National in an interview.

The company currently owns an office complex and two hotels in the Hungarian capital, Budapest. It also has hotels in Austria, the UK, Lebanon and the US.

Mr Al Habtoor did not disclose how much the company plans to spend in buying property but he said they were “looking for the right thing which has a good yield”.

The company aims to fund the new deals through its own resources and has no plans to borrow from banks or raise cash through bonds or sukuk.

The prices are “good now … there is an opportunity”, he said.

Europe faces economic headwinds with higher inflation and a tightening of monetary policy by the European Central Bank.

The euro area, which includes 20 EU countries that use the euro as their primary currency, is forecast to grow by 0.8 per cent in 2023, following a 3.5 per cent expansion in 2022, according to the International Monetary Fund.

The company aims to double or triple its portfolio in the next five years.

“With our investment in Europe, here or in the region, we have the appetite and capability to expand more.

“All the sectors, even in the schools, we are looking to expand in different areas, to go to different countries,” Mr Al Habtoor said.

The company intends to expand in the UAE and plans to unveil a new real estate project in Dubai by the end of the year following the launch of a Dh3.7 billion residential tower in Al Habtoor City, on Sheikh Zayed Road, earlier this year.

It has been “very busy” on the sales side at the new property, which it says is one of the largest residential towers in the world with more than 1,700 units.

“The general demand in Dubai for real estate is huge. There is still an appetite but [it] depends on the location, as well as the amenities you provide and the surroundings,” Mr Al Habtoor said.

Dubai’s property sector performance reached a total transaction value of Dh157 billion in the first quarter of 2023, an 80 per cent annual increase, the Dubai Media Office said in April.

The number of real estate transactions during the period grew 49 per cent to 38,715.

High-net-worth individuals (HNWIs) from around the world plan to spend $2.5 billion on Dubai property this year, according to global property consultancy Knight Frank.

Government initiatives such as residency permits for retirees and remote workers, and the expansion of the 10-year golden visa programme, as well as the economic boost from Expo 2020 Dubai and higher oil prices, have buttressed the UAE’s property sector over the past two years.

Dubai will continue to attract new buyers because property is less costly to buy in the emirate, compared with big cities such as New York or London, and offers a good lifestyle for families and individuals to live, he said.

“The property sector is undervalued,” Mr Al Habtoor said.

It is also one of the safest places in the world, with an attractive business environment and policies for businesses to thrive and expand their operations, he said.

“[Doing] business is easy and the government rules are very clear. There are no surprises and hidden things that you get surprised in the future. That’s why people have trust.”

Most banks and financial institutions have set up offices in the emirate to cover the Mena region, as well as the Indian subcontinent, Mr Al Habtoor said.

Dubai was the world’s top destination for greenfield foreign direct investment projects in 2022 for a second consecutive year, cementing its position as a worldwide FDI centre despite global economic headwinds, a report found.

The emirate, the tourism and commercial centre of the Middle East, achieved 89.5 per cent annual growth in FDI projects announced last year, the Dubai Media Office said in May, citing data from the 2022 Financial Times fDi Markets report on Sunday.

The company expects revenue growth of 15 per cent to 20 per cent revenue across its businesses in 2023, compared with last year. This does not include sales from Al Habtoor Tower.

The hospitality and motoring divisions contribute the lion’s share of revenue, at 65 per cent, followed by real estate, education and insurance.

The company, founded in 1970, owns seven hotels in Dubai and is the distributor of global vehicle brands such as Mitsubishi, Chery and JAC Motors. It also has two schools in Dubai.

On the initial public offering plans of the company, Mr Al Habtoor said they might have something to announce by the summer of next year.

“By one year from now, maybe next summer, we might have something ready to be announced, but the chairman will take a final decision.”

Source : TheNationalNews

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“When juxtaposed with property deals in Dubai Hills, Jumeirah Golf Estates or Emirates Hills, Al Barari stands out as a compelling choice, offering prices per square foot that typically sit 20 to 30% lower,” it said, adding that despite notable transactions, the area – billed as a preferred destination for billionaires – remains undervalued in comparison to other residential areas in Dubai.

“The ongoing developments and the forthcoming construction of mansion plots and custom mansions will be key drivers of Al Barari’s continued expansion, Ryan Almond and Ellie Street, Senior Property Consultants & Al Barari Specialists at Maria Morris Real Estate, said.

“With a multitude of luxury villas set to be completed from now until the end of the year and into Q1 2024, buyers are discovering exceptional value for money in Al Barari’s community, where purchasers are also lured in by the idyllic family community, lush greenery and lakes, setting it apart from other hotspot areas in Dubai,” they said.

Increase in capital value

According to the report, Al Barari has experienced a significant 111% price increase since January 2022. This growth has brought Al Barari in line with Dubai’s well-established prime areas, which have also witnessed a capital value increase of 125 percent over the same period.

The brokerage firm said the Al Barari market is currently experiencing increased enquiries from both investors and end-users as it offers a wide variety of property types.

“The area caters to different preferences and needs – whether someone is looking for apartments, penthouses, duplexes, modern contemporary or traditional style villas,” the report said.

Maria Morris Real Estate said it had an extremely impressive 2023 so far, with some highlight transactions in Al Barari, including the sale of 2 luxury villas for AED42 million – reportedly the joint second highest transactions ever in Al Barari, according to Dubai Land Department.

The firm also said it represented 71% of the apartments sold in Al Barari’s popular Seventh Heaven sub-community so far this year.

“These two AED42 million villa transactions in the community also re-affirms the fact that ultra-premium, luxury properties remain the most in demand commodity in the Dubai real estate market amongst local and global buyers, compared with other key global property hotspots such as London, Singapore, Miami and Tokyo,” it said.

Source : ConstructionWeek

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But what do you need to think about before you embark on your property search?

The Connexion spoke to property experts to find out what potential movers should consider when looking to buy property in France.

Do your homework

Make sure you research France and its varied regions before you start house hunting, or better yet, take a trip to research possible locations.

“France is a huge country with massively varied countryside, architecture and climate. A holiday spent touring the part that you are drawn to is good research,” says Julie Savill, from estate agency Beaux Villages, which has local property experts across France.

“Take a map and start marking areas, towns or villages that you like. Narrow down your search area before you even start thinking about viewings!” she says.

How remote do you want to be?

Many people dream of moving to rural France and escaping the hustle and bustle of the city, but it is worth thinking carefully about just how rural you want to be and what the ramifications of a rural life could be.

“There are plenty of properties where you can be very rural, with no neighbours and a short or long drive to the nearest village. For some, this seems idyllic, however, you need to consider whether the novelty of seeing very few people and always having to drive to get your bread and provisions will wear off over a period of time,” says Natasha Alexander of Suzanne in France, a British-owned estate agency based in Normandy.

“We recommend you do some research into the nearest village and large town and decide how close you would like to be,” she says.

Create a wishlist

Writing down what you definitely want in your new house can be useful when it comes to starting your property search.

“How many bedrooms/bathrooms? Will you do renovation work or just decorating? Do you want the luxury (and the cost) of a pool? Would you be happiest in a village or do you want to be completely alone in the countryside?” says Ms Savill.

Also consider what kind of house you would ideally want to buy.

“Do you dream of a renovated farmhouse, a maison de maître, a pavilion style house – how do you wish to live? Is it preferable to live on one floor or do you require something that is a new-build where the energy efficiency is the best it can be,” says Ms Alexander.

And it is just as important to think about your red lines.

“Are neighbours an absolute no? What about modern properties?” says Ms Savill.

Research the French housing market

Get acquainted with France’s housing market, which could be very different from that in your home country.

“Researching the housing market is essential. Prices vary significantly depending on the region and may not be as cheap or expensive as expected, says Patrick Joseph from My French House, a UK-based company that helps house hunters find properties in France.

“Some buyers still harbour the dream of finding a chateau to renovate or a farm in Provence for the price of a terraced house in the UK, but this is usually unrealistic. The good news is that asking prices for resale properties have been reducing over the past few months as the national market cools,” he says.

Check transport links back to your home country

Those who plan to buy a second home or stay in their home country for part of the year should look into transport links.

“Have you looked at the various routes available and the costs involved in travelling back to your home country. Are there good links back? How long will it take?” says Ms Alexander.

“This may not be of great importance if you do not plan to do this regularly but if you are commuting between the two countries this may be a deciding factor as to where your house will be.”

Be realistic about your budget

It can be easy to ignore your budget when picturing yourself in that beautiful chateau, but it pays to be realistic.

“Consider currency exchange rates so you know just how much you have to work with,” says Ms Savill. “Estate agency fees are generally included in advertised prices and you will need to pay in the region of 8% notaire fees on top. This includes the equivalent of stamp duty/land registry in the UK.”

“Setting your budget is a fundamental step,” agrees Mr Joseph. “If you need financing, apply for a decision in principle from a French bank or broker as early as possible; the criteria for mortgages are very strict. If you need to sell a property elsewhere, try to coordinate the timing of listing your home with your visits to France,” he says.

Mr Joseph also recommends researching currency transfers and the buying process in France, for example, how exactly to make an offer and when to pay your deposit. “These will differ from your home country,” he says.

Beware of the land trap

It is not only your budget about which you should be realistic – while many people dream of buying a property with land – consider how much you will be able to look after.

“A lot of properties come with a lot of land. If this is to be a holiday home, think carefully about the work and cost of maintaining a big garden or even a field and woodland if you are only there occasionally,” says Ms Savill.

Natasha Alexander says Normandy, and its excellent value for money, is attractive to people who want to buy land, for example to run a business or have a smallholding.

“Consider how much land is too much. Don’t forget acres and acres need to be maintained and looked after. Do you want this burden, in particular, if you want a lock-and-leave holiday home?” she says.

Be prepared to change your mind

There is nothing wrong with changing your mind about what you want, says Julie Savill.

“Be prepared to change your mind once you start viewing. That cute old stone property might just feel very dark once you get inside and a complete lack of neighbours could turn out to leave you more isolated than you anticipated,” she says.

And be willing to see a few wild cards.

“Sometimes really good properties don’t come over so well in photographs. Be prepared to go and see a couple of places that challenge your wishlist,” Ms Savill says.

Check out the local schools

If you are moving with young children, make sure to research the local schools before deciding on a house.

“Do you have easy access to the local primary school? While it may seem very quaint and again idyllic to live in the countryside when the children are very young. Have you considered when they become older and wish to play with friends after school?” says Ms Alexander.

“A little planning ahead could mean that you are not spending a lot of time taxiing your children to and from various sports clubs and the school itself.”

Consider healthcare options

It is important to think about healthcare options, whether you are planning to stay in France into old age or perhaps have a current healthcare condition that will need regular attention once you move.

“None of us like to think of getting older or sick, but consider your local clinic for services and the closest hospital. How long will the journey be if you need regular treatment?” says Ms Alexander.

Check the Internet connection

Something that could easily slip your mind is checking the local internet speed of the house you are looking at.

“While many areas have fibre now you will need to check the speed of the internet connection, in particular, if you use the internet for your work,” says Ms Alexander.

Find an agent

A good agent can help you navigate the process of buying in France.

“Buying privately is absolutely possible if you feel informed and confident enough to deal with a negotiation and contracts, which will all be in French,” says Ms Savill.

“An agent will have excellent local knowledge and a great awareness of the correct pricing for your local area. Speak to a few people and find someone you connect with,” she says.

Source: The Connexion

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VIENNA, Nov 21 (Reuters) – Raiffeisen Bank International (RBI) (RBIV.VI) has realized additional forward-looking risk provisions of around 150 million euros ($163 million) for the real estate sector, the Austrian bank’s risk chief, Hannes Moesenbacher, said on Tuesday.

Chief Executive Johann Strobl added that these provisions are “on top” and therefore go beyond what can be modelled.

Moesenbacher declined to answer shareholders’ questions at an extraordinary general meeting on Tuesday about the bank’s exposure to the troubled Signa Group of Austrian real estate investor Rene Benko, instead referring to banking secrecy.

“In total, our top five commitments in the real estate sector amount to 2.2 billion euros,” said Moesenbacher, who added that number one position amounted to 755 million euros.

Shareholders had convened the meeting, among other reasons, to resolve the distribution of a 2022 dividend of 80 cents per share. At its general meeting in March, RBI had decided not to distribute a dividend for the time being due to uncertainties.

Strobl also told shareholders that RBI was working on variations on how to get capital out of Russia but said a significant discount to the nominal value would be assumed.

Source : Reuters

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Rental income: An attractive proposition

Earning a steady rental income via renting tops the list of several investors.

“It not only gives a sense of security to many buyers to own a property but also makes the property more lucrative with decent returns,” says Anuj Puri, Chairman, ANAROCK Group, a real estate services company.

The other reason why many investors nowadays prefer to buy for rental purposes is because besides providing them a steady rental income, it also helps in keeping the property under use and therefore can be maintained.

Investors can pay off a part of their mortgage with the rental income received from tenants and also enjoy both rental and property value appreciation in future.

There is a also good possibility of receiving tax benefits including municipal taxes, and deductions on payment of principal and interest.

Challenges to be aware of

One should keep in mind that purchasing a property is a substantial initial investment. One would need to pay a down payment and EMIs or Equated monthly instalments on the property and that may fall way short of taking care of the mortgage.

According to Global Property Guide, average gross rental yield in India stands at 4.54%. By definition, rental yield refers to the annual rental value received from an income-generating asset, as a percentage of the property’s value.

This means that there can be a big gap between the EMI you pay and the rent you receive. For example for a property in a prime location in Mumbai which costs ₹3 crore, your EMI would be around ₹2.5 lakh at 8.40% interest. The rental income on the other hand would be in the range of ₹50,000- ₹80,000.

Besides, rental demand and appreciations are subject to market fluctuations and local factors and property values may not always increase. In addition to this, you may run the risk of having vacant periods and finding good, reliable tenants can also be challenging.

Managing a rental property is also time-consuming as you may require to deal with tenants, maintenance and repairs. “Managing a rental property is also time-consuming as you may require to deal with tenants, maintenance and repairs,” says Altaf Ahmad, CBO & Co-Founder, Azuro, a rental and property management firm, owned by Square Yards, a real estate marketplace.

Besides, rental demand and appreciations are subject to market fluctuations and local factors and property values may not always increase. In addition to this, you may run the risk of having vacant periods and finding good, reliable tenants can also be challenging.

Rental growth across cities

1BHK

2BHK

3BHK

Source: Square Yards

What to keep in mind before buying for renting out?

“When investing in a home for rental income, one must consider the potential rental income the property can generate. Location is one of the most critical aspects to keep in mind while buying an asset for rental income, as that determines rental value and reaps a good resale prospect in the future,” says Anshuman Magazine, chairman and CEO, India, SEA, MEA, CBRE, a real estate services firm.

It is important to evaluate the neighbourhood, infrastructure, and accessibility. Another key consideration should be enhanced amenities like schools, hospitals, and retail spaces, which are significant for tenants and help maintain asset value in the long run. These features play a pivotal role in ensuring the success of an investment.

In a good location, the owner will also not find it difficult to find new tenants when previous tenants vacate.

“Besides , one should also look to buy from a large and listed developer because most of the time to capitalise on the best rates, an investor buys the property when either newly launched or when under construction. Since most large builders today focus on timely delivery it will eventually help the investor in putting up the property on rent on time,” says Puri.

However, getting a property by a prime developer in a good location will require a huge upfront cost in terms of down payment and also servicing large monthly EMIs.

Additionally, the return on investment may not be as high as other investment options, such as stocks or bonds. So it is a decision that one needs to take after carefully evaluating one’s finances and the pros and cons.

Source : BusinessInsider

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MIAMI – An analysis done by Global Commercial Real Estate Services reports the cost of buying a home is at its most extreme since 1996.

That struggle is being felt by one local perspective homebuyer who tells CBS News Miami’s Chelsea Jones, that trying to find a property in this market is challenging.

Samuel Tuckerman is a native of Miami and lives downtown. Two years ago, he found a home at a great price. “Found a pretty good opportunity in North Miami for like $280K. Unbelievable deal for a penthouse,” he said.

The market was competitive and ultimately someone else got that home. So, instead of buying, Tuckerman decided to rent.

The Wall Street Journal cites an analysis done by CBRE, which found the average new monthly mortgage payment is 52% higher than the average apartment rent.

Local real estate expert Christopher Molina says there’s more to consider.

“That might be correct in that small, isolated area called New York. However, South Florida has many market forces working in its benefit. Homes have gone up 5% this year alone,” said Molina.

He says tax write-offs, deductions, and home equity can help lower costs in the long run.

Ultimately, he believes the time to buy is now.

“The market’s settled. You can make more offers. You can make lower offers; you can actually find the home you love. Yeah, it’s going to have a higher rate, but you refinance later,” Molina said.

However, for people like Tuckerman renting is the option right now.

“With these high-interest rates, it makes it really challenging to commit to something even though you could potentially refinance next year if they start to lower rates.”

Molina says inventory is limited in South Florida and will continue to be, so prices are likely not going to drop. He advises first-time homebuyers to look into programs and buy property.

Source : CBSNews

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The commercial real estate industry is still grappling with the pandemic’s longest-lingering ghosts: empty offices.

Post-pandemic, many offices now have vacant chairs last used after the first wave of “work from home.” Toronto records one of the worst commercial real estate situations, with office occupancy rates hitting almost 40%, Bloomberg reported. Cost-weary businesses that are not locked into their leases opted not to renew. In 2026, when a third of all office leases in the U.S. expire, according to real estate investment service Jones Lang LaSalleJLL +0.8% , commercial office buildings will be even emptier.

One prospective solution to this issue involves Real World Assets, blockchain-based investment products referred to as RWAs, at a time when real estate owners are looking for investors and solutions any way they can.

Keep in mind, it’s not just offices in crisis these days. Commercial office buildings lease to retailers who rely on workers in office towers for clientele. Without foot traffic, many of these retailers have been forced to close.

A contrary phenomenon is happening for residential real estate. From San Francisco to Hong Kong, major cities face a housing crisis, where the need for new housing is outpacing availability and high mortgage rates bar new buyers.

Unfortunately, the cost of reconciling these two issues and converting empty offices to residential properties is massive. Commercial real estate values are cratering. Interest rates are rising, and debt — the primary financier of real estate investment — is piling up. Credit tightening measures have left funds for projects dry, at all parts of the property lifecycle.

Not even mega property buyer BlackstoneBX +0.9% is immune from commercial real estate’s tumult. Its second-quarter realizations from real estate plummeted by 96% this year, according to its earnings call. Now, the flagship U.S. $68 billion real estate fund has transformed from one of the world’s biggest property buyers to a major vendor, selling more than $10 billion in real estate assets.

Real estate companies are desperate for new forms of revenue. The options, however, are limited. Real estate is a huge piece of the pie in the global economy — over US$300 trillion — but it’s highly illiquid, inaccessible, and inefficient to manage.

For this reason, commercial real estate has long been heralded as a prime candidate for tokenization, the process of converting real-world assets into digital tokens on the blockchain.

Real-world assets under management — including real estate — are inevitably going to end up digitized on the blockchain. In fact, it’s already happening. In July 2022, BNP Paribas used the ERC-1400 standard to tokenize a finance bond to fund energy giant Environmental Defense Fund.

That same year, global investment firm KKRKKR +2.7% tokenized its Health Care Strategic Growth Fund II. A month later, investment manager Hamilton LaneHLNE +0.7% with $835 billion in assets under management announced plans to tokenize three of its funds. These projects prove that RWAs can apply to more than just real estate tokens, although commercial real estate may be the sector in most urgent need of tokenized solution.

For many investors, real estate isn’t an option. You can’t just buy into property the way you can buy into AppleAAPL +1.5% or StarbucksSBUX +0.5%. There’s an insane amount of paperwork, manual processes, and regulatory hurdles involved — not to mention expenses.

High minimums and costly operations make real-estate one of the most expensive asset classes, historically affordable only to ultra-high-net-worth or institutional investors. Partial ownership models have loosened barriers to entry, but only marginally. Even the cheapest, publicly-traded real estate investment funds or REITs, can require minimums of up to US$25, 000.

Modeled after mutual funds, real estate investment trusts are the closest thing real estate investing has to public equity. For investors, though, their flexibility is handicapped. On top of high minimums, REITs are time-consuming and controlled by a brokerage or underwriter. And unlike public equity, REITs only provide exposure to entire portfolios — investors can’t pick and choose where to invest capital.

Alternatives to REITs — private placements or crowdfunding — are plagued by identical problems of inflexibility and illiquidity, large upfront capital investments and hefty fees, and minimum commitment periods.

Thankfully, we have the infrastructure to change commercial real estate’s fate for the better.

Tokenization could resurrect the real estate industry by offering alternative fundraising channels accessible to a broader base of investors across the entire property lifecycle. Putting RWAs like real estate on-chain makes them usable for trading, borrowing, lending, staking, and as sustainable collateral for various protocols powering decentralized finance.

Smart contracts — self-executing programs or protocols — can automate asset transfers. Transactions become faster, cheaper, more efficient, and far less prone to human error. Smart contracts can leverage attestation technology like Ethereum Attestation Service to ensure participants meet criteria for compliance or issuer preference.

Whether on a public permissioned blockchain or permissionless network, tokenization can also bring security and transparency to real estate investing. Investors, issuers, asset owners, auditors, and regulators will be able to verify information about on-chain assets, including proof of ownership, in real time. Combined, these benefits of tokenization could bring much-needed liquidity, efficiency, and transparency to the real estate market.

The business landscape may never recover to pre-pandemic office occupancy levels, but tokenization can push the industry into new frontiers and provide the necessary funding channels for new projects.

This boom in tokenized real estate may come sooner than we think, as companies like ABC Tokens, RETokens, and Tokenise prepare to launch the first wave of tokenized marketplaces and exchanges equipped for large RWAs like real estate.

Source : Forbes

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China is speeding up efforts to resurrect the economy’s recovery and enhance the business environment as concerns about the economy’s growth forecast intensify. China’s efforts to kick-start a property sector revival are poised to have a substantial, positive impact on international stock markets and delight global investors, says the founder of one of the world’s largest independent financial advisory, asset management and fintech organisations.

The upbeat assessment from deVere Group’s Nigel Green comes as The People’s Bank of China eased borrowing rules and slashed the reserve requirement ratio for foreign exchange deposits from the current 6% to 4%. Some of the country’s largest banks also cut interest rates on yuan deposits.

Green says: “Global stock markets are set to get a boost amid the rollout of steps being taken by the People’s Bank of China (PBOC) to revive the country’s beleaguered property sector. We expect the decision to ease borrowing rules and cut reserve requirements for foreign exchange deposits, plus the cutting of interest rates on deposits will have a considerable positive impact on global stock markets as investors digest news that Beijing is being proactive on this critical economic issue.”

China’s property market had been facing a crisis marked by plummeting property prices, oversupply, and a debt-laden real estate sector.

This turmoil raised concerns not only for China’s domestic economy but also for global investors with exposure to Chinese assets.

“The global impact of China’s efforts to revive its property sector cannot be underestimated,” says Nigel Green.

“A healthy property market is a vital driver of economic growth. As China’s property sector stabilises, it will boost construction activities, create jobs, and stimulate related industries like cement, steel, and furniture. The resultant economic growth will have a positive spillover effect on global markets, especially for countries that rely on China as a major trading partner.”

Green continues: “China’s property crisis had dented investor confidence in the country’s markets. Therefore, by addressing the issue, China is sending a reassuring message to international investors that it is committed to maintaining stability and promoting growth.

Restored confidence will, we expect, lead to increased foreign investments in Chinese assets, benefiting both domestic and global portfolios. China’s property sector revival will offer new investment opportunities, both in the real estate market and related industries. Global investors looking for diversification and growth prospects can be expected to find China an appealing destination once again.”

Since the beginning of this year, Nigel Green has been publicly saying that Beijing will take the necessary measures to shore-up the world’s second-largest economy and that global investors “must not overlook the opportunities in China if they are serious about building long-term wealth.”

The deVere founder concludes: “Global financial markets will be buoyed by these measures that will stabilise the critically important Chinese property market, restore investor confidence, and stimulate economic growth.”

Source : FinancialExpress

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