The real estate sector is revitalizing thanks to new technologies

(ETX Daily Up) — Having revolutionized the art market, NFTs are now turning their attention to the real estate sector. Thus, on June 21, Artcurial will auction ten iconic buildings and locations in Cannes in the form of non-fungible tokens. Welcome to the real estate 2.0 era?

This is the first time the auction house is listing properties on the NFT. Artcurial has teamed up with Cannes City Hall and Cannes-based artificial intelligence company Pertimm to digitally model 10 iconic locations in Cannes. Among them are the city’s Palace of Festivals and Congresses, the Croisette and the Old Port. This collection of places and buildings will be integrated into the blockchain and then sold as unique and immutable intangible assets.

The goal of this amazing initiative is to bring these iconic Cannes locations into the metaverse, into this digital skin of the physical world where you can attend concerts, shop for your avatar or even buy virtual land. Future purchasers of these intangible assets will be able to integrate them into the metaverse platform of their choice and use them for commercial or cultural purposes. In other words, they will be able to build buildings on the Croisette in the metaverse and organize a (virtual) exhibition at the La Malmaison Art Center.

For Arnaud Olivier, Assistant Director and Auctioneer at Artcurial, the auctioning of these intangible assets is not just a “simple sale of NFTs.” “This is the future experience of living in the metaverse that we will offer buyers and investors, a way to project themselves into another dimension, but on very real grounds, 10 iconic places in the city of Cannes,” he added. says in the statement.

$4.3 million for a virtual presentation

If we have to wait until June 21st to see how much these NFTs will rise to, it’s safe to say they’re worth their weight in gold. As proof, Republic Realm bought land in The Sandbox metaverse in December 2021 for $4.3 million. Anonymous was not afraid to spend $450,000 to buy a plot in the Sandbox. A small feature: he is next to the American rapper Snoop Dogg.

However, analysts believe that the metaverse real estate market is still in its infancy. More and more companies are buying land or digital property, as opposed to individuals. “At the moment we have a market with very few owners and few users – not at all on the scale of large social networks,” explained Robin Rivaton, essayist and technology investor, at Echoes.

If the metaverse is not democratizing access to real estate investment at this point, blockchain seems to be having the opposite effect. Startups such as RealT, Olarchy or Equisafe offer individuals the opportunity to buy real estate thanks to “tokenized” property. Principle: Real estate is divided into several parts or “tokens”, which are sold to one or more investors through the blockchain. This practice is much more common in the US, where any buyer can purchase “tokenized” real estate through a third party company. It is this entity that will buy the property in its name and receive the rights associated with it, such as rent, if it is rented out.

This practice is still not possible in France, even as companies like Wincity resort to roundabout ways to encourage as many people as possible to invest in stone. This startup sells NFT cards backed by real estate. Four levels of cards are available (Common, Rare, Mythic or Unique): each has a different value and provides different benefits. Holders of these cards can earn money in several ways. For example, they receive a monthly rent that is proportional to the value of the digital card they own. They can also resell it for capital gains.

Although the operation of tokenization is not easy to understand, this new technology can start a real revolution in real estate. Just like NFT and the metaverse.