UAE Based LandOrc, to use NFT and DeFi for real estate funding

UAE based, LandOrc, a new Tech solutions provider that facilitates lending for real estate industry by providing access to Decentralised Financing (DeFI) and utilising land titles in non-fungible token (NFT) form as a collateral, will use transactions on the Ethereum blockchain for greater trust, transparency and speed.

The value of the world's real estate market reached US$280.6 trillion, the highest figure ever recorded by Savills'. With an annual increase of 6.2%, residential real estate accounted for the largest share (US$ 220.6 trillion) of the market. Commercial real estate (US$ 33.3 trillion) and agricultural and forestry real estate (US$ 27.1 trillion) made up the rest.

In 2017, the average global base lending rate was 11.53%, but it has since increased almost across the board in 2019 (11.57%). According to a 2020 KPMG report.

Digitalizing the real-estate market with NFTs + DeFI

Digitalization in the real estate market has been emerging. However, processes are often a time and labour-consuming affair and have often been seen as a stagnant investment for large corporations, especially those with assets in different countries.

"Property Developers need loans for development and this funding gap needed to be closed. In came the private lending sector to support, but alas, the Covid-19 pandemic led to a decline in both capacity and appetite to lend as companies shifted their focus on their existing businesses and bottom lines."

"Furthermore, there is a dearth of transparency in processes causing volatility in property prices and coupled with slow transactions, the real estate market is in desperate need of a digital transformation. Complicating these are the snail-paced speed with which transactions occur," said Damo, Chief Executive Officer of LandOrc.io.

The NFTs are built on blockchain, a distributed ledger technology currently being widely adopted for various applications. NFTs are essentially digital tokens that carry data and are stored in the immutable blockchain ledger.

NFTs optimize real estate processes by implementing it in infrastructural, architectural, or physical assets such as buildings and title or ownership deeds.