NFTs became popular as pieces of digital art, the idea being that because they’re unique, they can provide a receipt of authenticity stored on the blockchain.
Some other points
Experts state that future real estate NFTs may only work if legal ownership provisions seamlessly integrate into the procedure where the traditional systems will be a part of the overall spectrum.
In late 2021, Republic Realm (now Everyrealm) paid a record $4.3 million for virtual land in The Sandbox, the largest purchase of virtual land to date. In a 2021 report, Grayscale speculated that “the Metaverse is estimated to be a trillion-dollar revenue opportunity across advertising, social commerce, digital events, hardware, and developer/creator monetization.”
Real Estate NFTs
The future of NFTs in the real estate industry looks bright, with more people getting onto the bandwagon. However, double-ended procedures are likely to be the norm with NFT property deals supported by due diligence, title registration and property transfers. Tax-related issues are major challenges for property trading and require a tangible solution. Some experts feel that to sanctify NFTs, they need cocooning in an LLC or legal entity.
Sellers and developers also have to zero in on a seamless method for selling their properties via NFTs without legal and taxation hurdles and breaching Government regulations. If authorities change local laws to enable certification of titles by NFTs, then it might be a game-changer for this space.