UAE based Arms & McGregor International Realty, real estate company behind Real Estate 6.0 (the new asset class in Real estate), is taking the GCC property sector to new heights with the launch of the region's first real estate tokenization platform directly connected to a DeFi liquidity pool. The platform will be developed by European BlockSquare tokenization solutions provider and platform.
With the increasing number of transactions that the UAE real estate sector registered over the past few months, Arms & McGregor International Realty eyes over 5 billion USD in liquidity to the property market in GCC by 2024. The move by the UAE firm comes as a stepping stone in the direction to make the liquidation of the asset class possible and transparent, while automating the transaction process.
Denis Petrovcic, the Co-Founder & CEO of Blocksquare, stated "With this partnership, property owners in the GCC will for the first time gain the ability to extract liquidity from DeFi markets simply by uploading their real estate property to the blockchain. It also opens up a new liquidity generator to fund ambitious megaprojects as traditional funding may fall short and not be as feasible. Since 2018, Blocksquare’s focus has always been to offer clients the best blockchain infrastructure for the tokenization of real estate assets. With our real estate tokenization protocol launched in the region through Arms & McGregor International Realty, entrepreneurs can start digitizing real estate assets at a fraction of the cost.”
Makram Hani the Founder & CEO of Arms & McGregor International Realty, said, “The GCC real estate sector especially in the UAE has proved its resilience and overcame major challenges since the 2009 financial crisis and the recent pandemic. With the launch of the new property tokenization platform, we aim to revolutionize the way property developers fund and sell projects; that will enable them to retain control over their projects. Property owners will also be able to sell portions of their property and liquidate the necessary rather than the whole asset. "
The new platform reflects Arms & McGregor International Realty's attempt in adopting new technologies and implementing tokenization to the real estate sector, as released earlier through the company's Real Estate 6.0 asset class. Real Estate 6.0 is the new asset class in real estate. Defined by Makram Hani as an asset that any one can trade, wherever you are, whenever you wish, and for the amount you choose to invest.
In the UAE, new regulations are being regularly introduced to boost the real estate sector. Working closely with key public and private stakeholders to adopt the new platform, Arms & McGregor International Realty and Blocksquare believe that tokenization will mark the start of a new era for the real estate sector, where each property will have its own smart contract and the evaluation of properties is driven by an open secondary market rather than paper-based reports. By expanding its operation into the GCC region, Blocksquare aims to support innovative real estate companies integrate blockchain technology and tokenization into their businesses.
Hani mentioned “Through our collaboration with Blocksquare and other partners we intend to get other stake holders in the market to launch their own platform and grow the ecosystem that is being built. We not only want to launch our own platform but also help other market players launch their white label platforms and tokenize their own property.”
"Real estate is the biggest asset class in the world, at the same time, it's one of the most illiquid investments one can make. While it is time consuming and extremely capital intensive, technology will address such challenges. With the emergence of smart contracts and blockchain, we now have the ability to create autonomous agents and protocols that can provide a transparent service for everyone involved in the lifecycle of a real estate transaction. Transfer of ownership will inevitably move online, however, the first step will happen on the investment part, as it is the one that requires the least input by regulators and can be fully executed without significant changes to current regulations," Petrovcic concluded.
