Challenges

The existing framework of real estate alienates a vast majority of investors due to a high financial entry barrier. The conventional methods are outdated, with operational bottlenecks and a lack of transparency in the processes. The industry also faces a generational divide, with soaring property prices and stagnant wage growth making it increasingly difficult for many to afford property.

Real estate investments also demand a significant amount of capital lockup, which can pose a challenge to an investor’s liquidity position. This poses difficulty for an investor to respond to financial emergencies or even invest in new opportunities.

Another hindrance that plagues the traditional real estate market is a lack of diversification of assets. The high capital invested in one property makes it challenging for investors to diversify investment to multiple other asset classes.

Real estate developers often find themselves intertwined in the slow and bureaucratic loan approval processes that frequently result in unfavorable terms. Moreover, the extravagant interest rates associated with the loans can deter developers from finding a financially viable solution for real estate projects.

• High financial entry barrier makes real estate investments inaccessible to a vast majority.

• Operational bottlenecks result in lengthy and complex processes for asset ownership.

• Illiquid markets hinder an investor’s liquidity position.

• Lack of diversification in other asset classes due to high capital hold-up in real estate investments.

• Unfavorable loan terms for real estate developers lead to a lack of funding.