Along with emerging technologies like Blockchain, Cryptocurrency, Virtual Reality, and Augmented Reality, NFT has become the new talk of the town. Global users use NFT marketplaces to list, sell, buy, and manage assets like real estate.
According to statistics, virtual lands worth more than $300 million contributed to 25% of NFT purchases in December 2021.
An NFT real estate market provides dealers with a secure digital infrastructure through which they can sell or buy properties. These marketplaces can be niche-focused or integrated, allowing NFTs to list from several fields.
Also, the NFT marketplace offers unique identification, which prevents data manipulation and protects against security concerns.
This blog post will walk you through the steps to creating an NFT real estate marketplace.
What Are Non-Fungible Tokens(NFTs)?
NFTs are cryptocurrency-based digital assets that anyone can sell online. The non-fungible tokens exist only for a limited time. However, they have a high market value due to their irreplaceable nature. Therefore, as demand rises, the digital asset’s value also increases.
The real estate component of NFT is gaining rapid popularity. For example, a virtual plot was recently sold for 1.5 million dollars or 888 ETH. Currently, the United States is leading the growth of the NFT marketplace by investing and trading in it.
How Do NFTs Work In The Real Estate Industry?
Consider the scenario where you own real estate and want to sell it. In traditional ways, you will discover purchasers through intermediaries, who will charge you commission fees if your house is sold.
Most of the time, the commission costs demanded by intermediaries are outrageous. You can quickly discover purchasers and submit your proposal for selling properties if you have a broad network of friends or family members. If this isn’t the case, you’ll have to rely on intermediaries.
However, this scenario is entirely different if you sell or purchase properties through an NFT marketplace. Here, you can locate the buyers with the help of a decentralized network that doesn’t use any middlemen and therefore doesn’t impose commissions.
The Working Model:
Blockchain technology makes NFT transactions look like a pretty straightforward process. Users can create customized contracts to their requirements, defining the terms and nature of the exchange. Many Blockchain systems can mint NFTs on their networks, and Ethereum, Flow, and other well-known cryptocurrencies are examples.
When buyers buy an NFT, they receive a certificate stating that the NFT is now their property. The transaction takes place by connecting crypto wallets to the respective NFT marketplaces. These wallets allow for the transfer of funds from the buyer to the vendor and the storage of NFT. Metamask, Trust Wallet, and Enjin are some of the well-known crypto wallets.
An NFT for a real estate marketplace, like any other, will include some basic features for listing and purchasing NFTs.
Advantages Of Implementing NFTs In The Real Estate Industry
1. Transparency & Security
Trading properties online requires a high level of security, and Blockchain-powered NFT platforms enable general resistance to hacking and data exploitation. In addition, traders can access transactional data of their properties, ensuring transparency.
A single person or entity can’t control a Blockchain by its very nature and can therefore be hard to hack. This function maintains the security of the NFT real estate marketplace, and users can execute transactions without worrying about being robbed or defrauded.
You can easily lend or borrow NFTs from decentralized marketplaces once you own NFT-based real estate property. As a result, NFTs encourage the concept of a mortgage.
3. Fractional Ownership
Real estate owners can divide their property into smaller fractions, or NFTs. Additionally, sell the bits of NFTs that carry the property’s ownership.
In other words, buyers with limited means can purchase fractional NFTs for a fraction of the market value. In this way, multiple investors can earn partial ownership of the same asset.
The mechanisms of fractionalization are pretty straightforward: Take a whole NFT and divide it into a specified number of shares (1,000, 10,000, or even 10 billion) that are sold at a specific price. Then, these shares can be bought and sold on secondary markets without affecting the value of the original NFT.
4. Absence of Middleman
What if you could exchange your real estate properties without using any middlemen? As there are no intermediaries on the decentralized NFT-based real estate network, users can take a fresh breath.
5. Low Transaction Fee
The marketplace owners have the option of making their platform exclusive. In the exclusive marketplaces, there is less traffic, leading to lower transaction costs.
Easy transfers are another crucial element to include. Many NFT marketplaces succeed because they simplify users to transfer assets to other users. The user will return for more if the transfer process is swift and efficient.
7. Ownership verification
A blockchain-based NFT marketplace can also verify ownership. The system ensures that the NFT of the estate is precisely validated.
A Step By Step Approach To Create An NFT Marketplace
1. Know Your Audience
Begin by determining your target audience and what they expect from an NFT marketplace.
The following are some essential points to ponder:
- What kinds of commodities or non-traditional technologies do you want to sell and host in your marketplace?
- Are you targeting a domestic or international audience?
- What wallets, services, and forms of NFT trading do you want to provide?
- What services, features, and information flow must be available in your marketplace if you’re just catering to artists and creators?
It will be easier to develop and deliver personalized services to your clients if you clearly understand your business model, target demographic, and service offerings.
2. Market Research
NFT is a perfect blend of different technical possibilities in real estate. In recent years, blockchain technology has evolved, leading to new market trends. It’s now up to an NFT Marketplace development company to develop solutions for long-term success.
Organizations that provide NFT market development services can significantly benefit from competitive analysis, industry research, periodicals, journals, and other educational tools. This type of study can help you create NFT solutions that are highly tailored, scalable, and future-oriented.
3. Product Discovery
After you’ve figured out what you want to sell, you’ll need to determine if your products or services are suitable for the market or your target audience. During the product discovery phase, you can examine the potential, significant features, and ultimate goals of your NFT marketplace.
Clients can also envision their product in real-time using innovative prototyping tools throughout the product discovery stage. The product visualization does not stop at the user interface; it also includes recognizing the difficulties, potential solutions, and market performance.
The procedure also lays out the project development and management strategy, including key elements like the structural base.
To acquire a fundamental knowledge of what NFT is and why you need an NFT marketplace to complete the job, read our thorough guide on NFT marketplace development.
4. Designing NFT Marketplace
Having a product structure will make it easier for you to create a compelling marketplace design that assists users in interacting with your product. You need to utilize a multilateral product design strategy that focuses on the many criteria to make your product user-ready for a varied audience.
A decent design will efficiently convert your audience into potential clients. In a richly featured NFT marketplace, each user would find a saturated interface that meets their needs.
You’ll need a capable team of NFT marketplace designers who can use their knowledge of product design, the NFT real estate market, and your target audience to develop a visually appealing and result-oriented plan.
5. UI Development
By utilizing top frameworks and programming languages, developers can implement the functionalities of the marketplace into the product to reach the end goal. Although the basic premise remains the same, engaging UI developers familiar with the NFT sector is always preferable.
You will need a collection of the below-mentioned technology resources to develop an NFT real estate marketplace:
- A Cloud-based Hosting Platform
To deploy the final product quickly, NFT real estate marketplaces require a flexible and scalable development environment.
Instead of deploying the program on a single server, an NFT real estate marketplace development company can use cloud hosting.
Cloud architecture enables automated and regulated solutions while providing APIs, web portals, and interoperable mobile applications.
- System for Managing Databases
A compatible database management system (DBMS) allows you to create a competent, safe, and secure environment for handling various types of data. Our goal is never to compromise on security. jeopardize the trustworthiness and long-term viability of data on an NFT real estate marketplace.
Database management systems (DBMS) are essential even when building cryptocurrency trading software.
- Platforms for the Frontend and Backend
A Blockchain development company can carve an interactive frontend and a solid backend that establish a client-oriented NFT marketplace using a variety of frameworks, computer languages, and scripts.
The most common technologies used to build an NFT real estate marketplace are React.js, Express.js, and Node.js.
6. Implement Blockchain Model
Blockchain helps in storing NFTs. The best Blockchain will provide secure and smooth operation. Smart Contracts facilitate the execution of protocols. Blockchain applications are built using frameworks like Drizzle, Ganache, and Truffle.
Ethereum, Binance Smart Chain, Solana, Cardano, and Polygon are all NFT marketplaces built on Blockchain. It would be possible for developers to create a Smart Contract and deploy it to your NFT infrastructure.
The purpose of establishing a compatible Blockchain ecosystem that is to:
- Provide extensive functionality.
- Keep track of what’s going on.
- Streamline the product’s futuristic Blockchain ambitions.
7. Integrating Crypto Wallet
One of the most critical requirements of a multifunctional NFT real estate marketplace is a crypto wallet with many features. For example, it allows the incorporation of crypto tokens and ensures the secure transmission of gas fees on both ends.
You’ll need a crypto-compatible wallet with capabilities that support the needs of a Blockchain-enabled NFT marketplace to conduct secure and smooth transactions.
Crypto wallets are available in a variety of forms. You can also employ a cryptocurrency wallet app development business to assist you in developing a custom cryptocurrency wallet specifically for your marketplace.
Testing is more than just looking for flaws and errors. It’s a final stage where you evaluate your concept’s possibilities that have evolved into a finished product. Therefore, we need to examine every small and significant chained feature, functionality, interface, and even NFTs within the program listed on the platform.
You look at the design, development, and other aspects of making it a complete NFT marketplace solution.
9. Deploy & Launch
Once you have a deployable NFT marketplace product, deploy it on the server seamlessly and safely. External resources and Smart Contracts will be integrated into a single bundle with flexible deployment. The ability to deploy leads to more successful business outcomes.
You can launch your NFT real estate marketplace on several design and development platforms. In addition, you can present your product in many ways, such as to potential clients, investors, and partners.
Top 5 Real Estate NFT Marketplaces
Now that you’ve learned about NFT marketplaces in detail, including their benefits and a step-by-step implementation guide, it’s time to learn about the top performing NFT marketplaces in the world to gain confidence in integrating them into your business in the right way.
1. Open Sea
OpenSea offers a diverse range of digital goods, ranging from original artwork to real estate. By searching here, you can locate various one-of-a-kind virtual properties.
OpenSea is the most secure platform for virtual buying and selling, with a trading volume of about 1.67 billion dollars.
To purchase NFT real estate, OpenSea offers two possibilities. A property can be sold at a fixed price or at an auction where several purchasers can submit bids. If the seller accepts your offer, you will be able to purchase the land you choose.
Cryptovoxels is a well-known and reliable virtual property marketplace. Approximately 80% of the land sold in this area has already been developed.
From their site menu, you can select specific land locations. Select any of them you like and purchase them with your virtual wallet. Cryptovoxel’s world’s aesthetics look pixelated, making it exciting and appealing to users.
3. Polka City
Polka City provides users with access to a variety of virtual locales. It has the potential to be a lucrative source of income. In comparison to other marketplaces, joining Polka City is a simple process. It is accessible without the need to open a new Blockchain wallet.
Each site is an NFT with a real-world value that allows you to make money. Creating an internet property here is comparable to that establishing a physical location.
4. Super World
SuperWorld virtual real estate offers over 64 billion plots to choose from. You can have anything you want, from historical landmarks to stadiums and scrappers. In addition, it enables you to locate a home with sentimental importance for you.
You can buy and sell these digital assets since they are tradable. SuperWorld allows you to own a one-of-a-kind, irreplaceable piece of digital real estate. Each plot is a 100m × 100m rectangle, the same size as a Yankee stadium.
Decentraland is another prominent NFT marketplace for virtual and digital assets. It allows you to purchase virtual land and create a virtual community. In addition, you can explore, engage, and play games within this online environment.
Once you have control of the land, you can build whatever you want. It could be a static image or a fun game. Decentraland is a virtual economy where users can conduct trades and monetize their assets.
A plot of land on Decentraland can cost thousands of dollars. This has even attracted the attention of the online art community. Digital artists have purchased land on Decentraland and constructed art galleries to display their work.
While every NFT marketplace development idea is fantastic, not all of them turn a profit or are effectively implemented.
The best outcome always stems from the best path:
- Right Plan
- Right Partners
- Right Approach
At Parangat, we provide the best Blockchain consulting, the development of the NFT marketplace, and a range of additional products and consulting services. We have a brilliant panel of well-versed professionals in the latest Blockchain platforms and other cutting-edge technology.
Hence, regardless of the size and scope of your organization, we stand by all three Rs:
Right Investigation, Right Suggestion, and the correct implementation.
Book a meeting with our specialists today for additional information and get started with your NFT marketplace development!