Top 7 Web3 Real Estate Startups You Need to Watch Out For in 2023
Web3 or Web 3.0 is the successor of Web 2.0 that we majorly use today. Web 2.0 allows users to interact with websites and supports user-generated content (UGC). This version of the web mainly relies on centralized servers and there are entities controlling the web access. For instance, a website or web app owner may limit access to their website or web app to users from a specific geographical location.
Web3 is different from Web 2.0 in the sense that it focuses on making the web decentralized and more interactive. For that, Web3 makes use of futuristic technologies, including blockchain, artificial intelligence, augmented reality (AR), and virtual reality (VR).
The real estate industry is among many others that leverage the internet to sustain their growth. Today many companies are using web3 and blockchain in real estate to bring forth a whole new experience of buying and selling properties online.
In this blog, we will take a look at some of the most popular web3 real estate startups that are changing the landscape of the real estate. But let’s first discuss how exactly Web3 impacts the real estate industry.
Web3 Revolutionizing the Real Estate Industry
Web3 acts as a game changer for the real estate industry. By using Web3, which is powered by blockchain technology, it becomes possible to eliminate intermediaries for real estate transactions. Moreover, the process of buying and selling real estate becomes more secure, transparent, and quick with Web3.
Along with blockchain, smart contracts and NFTs are the underlying technologies for Web3. These technologies come in handy for facilitating and automating the buying, selling, and renting of properties.
Blockchain provides the storage space needed for hosting real estate websites and dApps. It also records the real estate transactions and the ownership details of properties. Blockchain allows the decentralization of the web while ensuring data integrity. The data stored in a blockchain is tamper-proof and thus it’s difficult for hackers to steal or manipulate data.
With NFTs and smart contracts, it is possible to tokenize properties, digitize ownership, and enable fractional ownership of the real estate. Moreover, smart contracts help to automate the ownership transfer process and rental agreement creation, renewal, and termination.
The use of VR and AR allows users to take virtual tours of properties while sitting at their homes. There’s no need to book appointments and take a day off to visit a property. Also, buyers can take virtual tours at any hour of the day.
From virtual tours to paperless ownership transfer, Web3 completely transforms the way the real estate industry works. However, there’s one more essential aspect of Web3 that makes it extremely favorable for real estate, which is crypto payments.
As a buyer, you can visit a Web3-based real estate website or app, view a property, take a virtual tour, make instant payment in the form of cryptocurrency, and get ownership in a few hours. Making payments with cryptocurrencies enables payment settlement in a couple of minutes even if someone buys a property overseas.
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List of Top 7 Web3 Real Estate Startups
Here, we have curated a list of the top real estate startups that promote the use of Web3 in real estate.
Torii is a well-recognized real estate startup that is utilizing Web3 to digitize the ownership of physical properties. The company has created a decentralized finance (DeFi) platform that runs on Web3 and is accessible to everyone – Blockchain Home Registry.
By using this platform, property owners can mint an NFT of their property; be it a house or an apartment. The idea of the company is to give power into the hands of property owners if they want to sell their property to someone directly, without the intervention of real estate agents.
Even real estate companies can use the Blockchain Home Registry platform to create NFTs of the properties that they want to sell. By creating NFTs of properties, individuals can update all the details of their properties in one place and share them with prospective buyers instantly.
RealT is a startup that has created an online platform for fractional real estate investment. The platform allows investors from any part of the world to buy and sell properties in the US easily.
The company offers fractional ownership of properties and ensures the ownership is compliant with various US property laws. Also, fractional ownership is facilitated using the popular Ethereum blockchain. The ownership of a property is split across multiple investors through crypto tokens. Depending on the share of crypto tokens that an investor owns against a property, they can vote on property decisions and get a portion of the rent.
To start buying the fractional ownership of properties listed on RealT, a user need an Ethereum wallet, such as MetaMask, Trustwallet, Coinbase, Ledger, and Wallet Connect. Every property listed on RealT is managed by a property management company that undertakes tasks like sourcing, rent collection, and property maintenance on the behalf of owners.
Propy is among the most promising startups that are transforming the real estate industry with Web3. The company has developed a platform that helps with the automation of real estate transactions.
The conventional methods of real estate trading are complex, time-consuming, and prone to fraud. Propy tends to put an end to such issues with the help of Web3 and blockchain. It makes use of smart contracts to automate tasks such as eSignature, property document verification, and payments.
Propy allows users to buy and sell properties using fiat currency or cryptocurrency. Additionally, the platform allows users to buy homes as real property NFTs. They create NFTs for real-world properties that comply with the U.S. legal framework.
Metamall is another Web3 real estate startup that is based out of London. The company has developed a Web3-based virtual mall. To be more precise, they have used the Solana blockchain and VR technology to create a virtual mall. Users who hold the native tokens of Metamall are known as Metamallers.
The company has leveraged Web3 along with DeFi to let users perform different activities within the virtual mall. Users can buy real estate and make real money by leasing, staking, and selling their assets within Metamall. Also, users can participate in games and host events to get rewards.
To ensure better engagement and retention of users, Metamall added various themes and architectures. This helps to deliver a better user experience and make sure that users don’t get bored with the virtual mall.
FiEx is an NFT marketplace that uses augmented reality (AR) to let users own digital assets on a map and earn money from them. The company focuses on making the concept of metaverse popular among individuals. FiEx is developing metaverse properties that users can buy and sell.
The company has developed a virtual space, called District Rubicon, where users can develop and manage real estate. Basically, District Rubicon is a huge building with space for offices and stores. Users can join the metaverse to access District Rubicon and participate in various activities.
CitaDAO is a startup that has developed a tokenized real estate platform. The company used blockchain technology, Web3, and DeFi to enable real estate transactions on the Ethereum blockchain.
The main intention of building CitaDAO is to solve multiple issues that real estate investors face, such as limited access to properties, lack of trust, tedious ownership transfer process, and limited liquidity. With CitaDAO, it is quite easy to tokenize real-world properties and trade them quickly in the form of tokens. For ensuring high liquidity, the platform is using AMM (automated market makers) and liquidity pools.
Real estate is among such markets that yield good returns. However, the limited access to properties restricts several investors from owning properties having the potential to generate handsome returns. CitaDAO aims to make real estate transactions borderless and highly secure.
Milo is Web3 real estate startup that offers loans for buying properties. One particular thing that makes Milo unique is that it accepts crypto mortgages. It means that an individual can take a loan against their crypto holdings. Milo is ideal for crypto investors who want to buy a property without liquidating their crypto holdings.
The company offers a loan of up to $5 million with a maximum tenure of 30 years. Also, the interest rate for loans starts at 8.95%. At present, Milo accepts Bitcoin (BTC), Ether (ETH), and stablecoins as collateral for issuing loans. The company has partnered with Gemini and Coinbase, which acts as mortgage custodians.
There are several advantages to taking a mortgage from Milo. The first is that users can apply for a mortgage loan anytime and from anywhere. They provide users with the flexibility to change the monthly payments at their convenience. Additionally, Milo accepts both fiat currency and crypto as monthly repayments.
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The Web3 developers at Teqnovos have in-depth knowledge of various frameworks, tools, and APIs required to build Web3 solutions for real estate startups as well as established companies.
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To Sum it All Up
The adoption of Web3 in the real estate industry is gaining momentum. Several startups have emerged today that are offering various real estate services over Web3.
From buying/selling properties as NFTs to availing crypto mortgages, Web3 real estate startups are facilitating real estate transactions in whole new ways. Also, these startups are responsible for setting various Web3 trends in real estate.
As Web3 relies on various new and innovative technologies, including blockchain, smart contracts, artificial intelligence, and virtual reality, it is a good idea for startups to get assistance from a leading Web3 development company, like Teqnovos, to develop robust Web3 solutions.