In our last example we gave the example of a building in Harare worth $1 million that can be split into1 million digital tokens worth $1 each, each representing a small share of the property. Instead of needing the entire $1 million to buy the entire property, investors could purchase, say, 10,000 tokens for $10,000, owning 1% of the property.

The benefits for Zimbabwean investors are significant. Instead of needing $1 million to buy a property, you could invest from as little as $1 and own a proportional stake in your dream property. This enables diversification. You could own small stakes in multiple properties across different areas: a residential property in Harare, commercial space in Bulawayo, and agricultural land in Mashonaland. Unlike traditional real estate, which can take months to sell, tokenised property can potentially be traded 24/7on digital exchanges. All transactions are recorded on the blockchain, providing clear ownership records, which is particularly valuable in Zimbabwe, where property disputes can be complex. Finally, it simplifies the buying and selling process by removing many intermediaries, which can lower costs and speed up transactions, making property investment more efficient and affordable. Additionally, Zimbabweans could invest in international properties, diversifying beyond the local market.

Many people may think tokenised real estate sounds like a Real Estate Investment Trust (REIT), butthe two are quite different. With a REIT, investors own shares in a company that manages and operates income-producing properties. Their returns come from the performance of the company, not direct ownership of the property. Tokenisation works differently. Token holders own a fractional piece of the underlying asset itself, not the company running it. This direct ownership makes the investment more transparent and removes multiple layers of management fees. With REITs, investors receive dividends based on the company’s overall profits, which may be delayed or affected by management decisions. In tokenised real estate, rental income or profits can be distributed directly and automatically to holders through smart contracts, offering faster and more transparent payments. In addition, tokenised real estate offers global reach because investors from anywhere in the world can participate, while REITs are usually limited by local stock exchange regulations and listing requirements.

However, challenges remain. Legal frameworks for tokenised real estate are still developing globally. Questions around property rights, taxation, and regulation need resolution. Nevertheless, as block chain technology matures and regulatory clarity improves, tokenised real estate will democratise property investment, allowing ordinary Zimbabweans to build wealth through real estate ownership previously available only to the wealthy. It also provides the Zimbabwean diaspora a chance to invest directly inreal estate back home without worrying about complex paperwork or middlemen.