(ETX Daily Up) – After revolutionizing the art market, NFTs are now turning their attention to the real estate sector. The Artcurial house will thus auction, on June 21, ten emblematic buildings and places in Cannes, in the form of non-fungible tokens. Welcome to the era of property 2.0?
This is the first time an auction house has listed real estate on NFT. Artcurial has joined forces with Cannes City Hall and the Cannes-based company Pertimm, which specializes in artificial intelligence, to digitally model 10 legendary sites in Cannes. Among them, the city’s Palais des Festivals and Congresses, its Croisette and its Old Port. This collection of places and buildings will be integrated into the blockchain, then sold, in the form of unique and non-modifiable intangible assets.
The goal of this surprising initiative: to bring these emblematic sites of Cannes into the metaverse, this digital lining of the physical world where you can attend concerts, go shopping for your avatar or even buy virtual land. Future buyers of these intangible assets will be able to integrate them into the metaverse platform of their choice, and make commercial or cultural use of them. In other words, it will be possible for them to build buildings on the Croisette in the metaverse and to organize a (virtual) exhibition at the La Malmaison art center.
For Arnaud Oliveux, associate director and auctioneer at Artcurial, the auctioning of these intangible assets is not just “a simple sale of NFT”. “It is a future experience to be lived in the metaverse that we will offer to buyers and investors, a way of projecting themselves into another dimension but on the very real bases of 10 iconic places in the city of Cannes”, he added. he said in a statement.
$4.3 million for a virtual pitch
If we will have to wait until June 21 to find out how much these NFTs will go up to, it’s a safe bet that they are worth their weight in gold. As proof, the Republic Realm company bought land in The Sandbox meta-universe in December 2021 for $4.3 million. An anonymous person did not hesitate to spend 450,000 dollars to buy a plot in The Sandbox. Small peculiarity: it is located next to that of the American rapper Snoop Dogg.
Analysts, however, believe that the metaverse real estate market is still in its infancy. More and more companies have purchased land or digital properties, unlike individuals. “At the moment, we have a market with a very small number of owners and a small number of users – not at all on the scale of the large social networks”, explained Robin Rivaton, essayist and investor in proptech, at Echoes.
If the metaverses do not democratize access to real estate investment for the moment, the blockchain seems to have the opposite effect. Start-ups like RealT, Olarchy or Equisafe offer individuals the opportunity to buy real estate thanks to “tokenized” property. The principle: a real property is divided into several parts, or “tokens”, to be sold to one or more investors through the blockchain. This practice is much more widespread in the United States where any buyer can acquire “tokenized” real estate through a third-party company. It is this structure that will buy the property in its name and collect the rights attached to it, such as rents if it is rented.
This practice is still impossible in France, even if companies like Wincity go through devious means to offer the greatest number of people to invest in stone. This start-up is selling NFT cards backed by real estate. Four levels of cards are available (Regular, Rare, Mythic or Unique): each has a different value and offers different advantages. Holders of these cards can earn money in several ways. For example, they receive a monthly rent proportional to the value of the digital card in their possession. They can also resell it to generate capital gains.
Although the operation of tokenization is not the easiest to understand, this new technology has the potential to start a real revolution in the real estate sector. Just like NFTs and the metaverse.