And recently, a Dubai-based real estate giant Emaar has announced its plans to launch a token, along with a blockchain real estate projects as reported by their local media Arabian Business on March 11. This will be among the first referral and loyalty tokenized real estate project in the world giving access to an existing operational ecosystem of close to $10B.
Blockchain real estate projects are rising in the EU
Our AtoZ Weekly crypto overview of last week revealed that the blockchain technology is being adopted more nowadays in existing jurisdictions and industries. One of these industries is the real estate sector. The blockchain technology intends to disrupt the way real estate companies work in a traditional way. But it might not be profitable in the future, especially when middlemen become redundant and blockchain real estate projects come into play. The blockchain technology could disrupt real estate network and could reduce risk aversion through a trustless environment. This might ease property transactions without the need for third parties. Moreover, greater market demand for transparency in the global economy has encouraged innovation in tokenized real estate.
Emaar's tokenized real estate project will be developed by Lykke, a Swiss blockchain startup and will enable Emaar’s clients and stakeholders to access the referral and loyalty system across the entire company. The group is one of the largest real estate company in the United Arab Emirates (UAE) and located behind the city’s most famous structures such as the Burj Khalifa, Dubai Fountain, Dubai Mall, and Dubai Opera.
Chairman of Emaar Properties, Mohamed Alabbar, quoted of the decision to develop a tokenized real estate project and expand their reach in Europe:
“We continuously strive to expand our reach, strengthen our growth and extend the Emaar experience. We have embraced the digital world even as we continue to build the most advanced and innovative physical structures and we use both to delight and benefit our customers and stakeholders globally. The Emaar community token marks a significant leap in our digital transformation journey.”
The above statement by Alabbar highlights the company’s intense focus on innovation and providing the most complete experience to drive customer service and loyalty across its businesses. This might enhance customer satisfaction, growth, and profitability.
Emaar plans for a tokenized real estate
Tokenized real estate can make many processes associated with property transactions happen faster and at a lower cost. This might enable greater liquidity in the market. As blockchain real estate projects are constantly growing since the past few years, a $30M New York property became the first asset to be tokenized real estate using the power of blockchain technology. Now, the Emaar’s blockchain real estate projects also consider holding an ICO in Europe within a year of the internal operational launch of the platform. Lykke, the startup developing the token will follow the ERC-20 token standard and release it on the Ethereum blockchain platform.
CEO of Lykke, Richard Olsen, also said that:
“We have developed cutting edge technology infrastructure with mass-market usability to support our core belief that all mobile and internet users should be able to participate in economic activity, regardless of the size of the contribution. We are thrilled to leverage our experience and expertise to support Emaar’s mission to bring value and utility to millions of users globally.”
Moreover, the Emaar Properties illustrates a revenue of $5.83B and has been valued at $9.7B as of June last year according to Wikipedia. Also, as per Arabian Business, Emaar’s revenue grew by 37% last year to $7B.
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