The real estate market has dynamically evolved in the past few decades. From new tools to alternative investments, investors are constantly on the lookout for the next big thing in the industry. In this article, we have discussed one such evolving method that has been gaining huge popularity in the past few years – parking spaces.
Investments in Parking Spaces
Urbanization is one phenomenon that is typically common in almost any country. The growing population in urban cities has raised the need for subsequent infrastructure for residential and commercial purposes. In addition to this, an increase in the number of vehicles has further sparked the need for parking spaces.
Apart from the growing demand, various other factors make this particular real estate asset an attractive opportunity. This includes an undiscovered and untapped market that requires relatively less capital in comparison to other real estate investments. The International Parking Institute reveals that the parking industry generates more than $20 billion in revenue each year.
A stable and long-term growth, low-capital requirements, reduced operating costs, and a diversified portfolio are some of the benefits to investments in parking space.
Tokenization of Parking Spaces
New innovations on the market have made investments in parking spaces more simple than ever before. Tokenization allows any individual to invest in shares of parking spaces and gain fractional ownership of a piece of real estate. Any investor can invest with capital requirements as low as $10.
The concept of blockchain-empowered tokenization of real estate assets is gaining significant popularity among investors. High liquidity, ease in buying and selling of digital tokens, and a significant return on investments are some of the benefits to tokenizing an asset like parking spaces.
The trend of tokenizing parking spaces has already generated buzz. In 2018, a small parking garage located in technology park Ljubljana was the first space to be tokenized on blockchain. The tokenized parking space was funded by 19 different investors that 8 countries in a funding process that lasted 16 days. Each investor holds a share in the tokenized garage that is recorded and distributed through security tokens.
Crowdfunding Parking Spaces
Real estate investments have never been more accessible if an investor knows where exactly to look. Crowdfunding allows individuals to participate in a funding process, wherein each investor can gain a share in any real estate property without much hassle.
Crowdfunding for parking spaces facilitates any investor to leverage the benefits of returns and low-maintenance without investing huge capital. The tool renders you a method to interact with investors sharing the same ideologies on a common platform. Moreover, it also allows an investor to diversify their investment portfolio by staking a claim in parking spaces, that typically yield greater returns.
Moreover, crowdfunding allows individuals to seek global investors. The parking space investments are not bound by geographical locations and they can be made in any part across the globe through a crowdfunding platform.
Blockchain Empowered Crowdfunding
Blockchain technology has made the art of crowdfunding more innovative and frictionless than ever before. While crowdfunding enables investors to own shares, blockchain further facilitates raising those shares in the form of digital tokens.
These digital tokens, that are recorded on the blockchain, represent the underlying share of the individual in that particular asset. Using tokenization, investors can also rent out parking space and earn income after their share in the property. Furthermore, blockchain also enables a globalized distribution, wherein tokens can be bought or sold on a secondary market. This makes investments in real estate as simple as that in company stocks.
In addition to this, blockchain empowered crowdfunding allows investors to diversify their portfolio by reducing the minimum capital investments needed in different assets. An investor can choose to invest in parking spaces and a piece of residential property with a minimum capital amount of as low as $500. It also reduces the high barriers to investments in any property of the real estate. An individual can leverage the high returns of a real estate property with a low barrier of minimal investment.
Blockchain tokenization also helps with instant liquidity to real estate assets as they can be bought and sold to an international audience.
Blockchain and crowdfunding have made investing in real estate accessible, easy, and smooth. Parking space is a relatively untapped market that promises a huge growth with an increase in the levels of urbanization. Using tools of tokenization and crowdfunding, any individual can invest in parking space without much hassle of maintenance and operations and further get a sound return on the passive investment.