Ladybird Living – Your London Estate Agent

Ladybird Living
Mar 22 2022

The future of real-estate: NFTs

In recent years, the real-estate market has developed significantly. Non-fungible tokens (NFTs) have been increasing in popularity, particularly in the digital art world, but NFTs have also made their way into the real-estate market. It is now possible to use NFTs to sell property. This blog will discuss what NFTs are, how they could change the real-estate market and the potential issues of using NFTs in real-estate.  

What are NFTs and how could they change the real-estate market?  

NFTs stand for ‘non-fungible tokens’ which are issued on a blockchain. Each token is unique and therefore can be used to identify a unique item in both the digital and real world. NFTs provide buyers with ownership rights over a particular item.  

NFTs have now been introduced in real-estate to represent ‘fractional ownership.’ This is where homeowners can sell part of their property to a group of investors by issuing tokens on the blockchain. Investors who buy these tokens will receive a rental income which would enable them to earn some profit.  

To sell properties using NFTs, the seller must complete all the necessary legal procedures to ensure they meet regulations. This means that estate agents must involve legal advisors who have experience in blockchain technology.  

Once you have received all the necessary legal advice, estate agents can then begin the ‘minting process.’ Minting refers to the process in which sellers upload a contract which mentions all the details and legal information about a property. This will ensure that the potential homebuyers are aware of all the features and material information of a given property before committing to buying it. Buyers will bid for each property and the highest bidder will pay for the property in either fiat money or cryptocurrency.  

Benefits of using NFTs in real-estate:  

There are many benefits of using NFTs in real-estate; for example, it could make buying a home an easier process just through clicking a button online and allows homebuyers to assume ownership of property within minutes.  

For investors, a benefit is that they would be able to earn back in their blockchain properties within a brief period and can earn a passive income by leasing their NFTs out to others through smart contracts.  

What are the potential issues of using NFTs in real-estate?  

A major disadvantage of using NFTs in real-estate is that digital transactions may be susceptible to cyber-fraud. It may be that some websites will offer fraud NFTs and therefore it is important to do your research about legitimate NFT websites before investing.  

Real-estate NFTs may also be a risky investment because they can eventually reach a value of zero without any warning.  

Another issue is that older generations who are involved in selling properties may be unwilling to adapt to technological advancements compared to younger generations which could impact their business.  


NFTs in real-estate have only recently been introduced and therefore it is difficult to know whether they would be worthwhile in the property market. It is certain that NFTs provide a straightforward way of transferring ownership of shares in real-estate investments or virtual real estate. However, many legal issues can arise and real estate laws still need to be developed to ensure that sellers are following legal advice and that buyers’ rights are protected.  


Watch our NFT and real-estate video here: The future of real-estate: NFTs – YouTube


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