A Detailed Guide to Develop a Real Estate NFT Marketplace
written by Nitin Garg | Jan 20, 2023
The advancements in technology have completely revolutionalized the technological space. Along with emerging technologies like Blockchain, Crypto, and AR/VR, NFT is also a hot topic in the industry. Ever since the popularization of Non-fungible tokens, NFT Marketplaces have become a common occurrence. Users from all across the globe use these marketplaces to sell, trade, buy, and manage assets like real estate. An NFT real estate marketplace has the potential of simplifying the job of real estate investors. It provides investors with the ability to buy and sell properties through a digital secure infrastructure. A real estate NFT Marketplace provides.
According to experts, around 25% of total NFT purchases were for virtual lands. The total value of these lands is estimated to be $300 million. There have been other major developments in real estate NFT sales like Superworld, an AR-based mirror world real estate game. Mars House was the first digital home to be sold on an NFT real estate marketplace, it was valued at $500,000.
An NFT real estate marketplace provides a robust and secure infrastructure which prevents data manipulation and protects against security threats by offering unique identification to its users. It is a lucrative chance for businesses and entrepreneurs & celebrities to invest in the NFT industry.
Table of Contents
What are NFTs?
NFTs stand for non-fungible tokens and it is a digital blockchain-based token with unique identification and metadata that differentiate them from other tokens. Each NFT is unique and belongs to a single owner. However, they can be sold on NFT marketplaces for cryptocurrencies or fiat currency.
It bears resemblance to blockchain tokens which raises the question “ How are NFTs different from blockchain tokens?”
In order to understand the difference, we will have to understand that there are two types of blockchain tokens- fungible tokens and non-fungible tokens. The difference is that you can create as many copies of fungible tokens as the blockchain allows. However, non-fungible tokens are unique and can’t be replicated. They have a unique ID to represent any object.
The primary difference is that fungible tokens can be replicated and are non-unique whereas Non-fungible tokens or NFTs are unique and only one person can possess a particular NFT.
Using the power of blockchain technology, NFTs are faster, more reliable, more secure, and more effective. NFTs can be used to
Prove the ownership of a physical or digital object
Easily trade or exchange NFTs
Keep rigid and transparent asset sales records on the blockchain
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NFTs are used to represent properties in real estate. Any user can buy properties by making transactions through cryptocurrencies or fiat currency. When the owner receives the payments in tokens through the marketplace, the buyer receives a property NFT of a particular virtual or actual property. This property NFT represents the proof of ownership of a real estate object.
NFTs in Real estate marketplace contain a lot of data and storing them on the blockchain can be quite expensive. In order to tackle this issue, smart contracts contain a link to the asset properties NFT represents, which is only accessible by the owner. The data smart contracts store include
Information on Ownership
Location of Real Estate
Parties that are entitled to royalties each time NFT is sold
While developing an NFT Real Estate Marketplace, it is important to implement the essential features to make your platform as interactive as possible. While developing an NFT Real Estate Marketplace, it is important to implement the essential features to make your platform as interactive as possible.
Real Estate NFT Marketplace Features
Here are some features that shouldn’t be missed in an NFT Marketplace.
The real estate NFT marketplace is based on blockchain which provides a decentralized platform. This means that it is not regulated by a central authority and all users have true ownership of their assets.
The transactions carried on a decentralized platform provide transparency and security. All the transactions are recorded on the blockchain which protects it from a range of cybersecurity threats.
Platforms based on blockchain are interoperable which means that the assets acquired on a particular platform can be transferred to another platform and used.
The real estate NFT marketplace platform allows users to convert their assets into tokens. Users have to keep up with multiple token standards to tokenize their assets and their assets have unique ownership in the marketplace.
NFT wallets offer users the opportunity to sell, buy, or trade assets in a convenient manner. These wallets are integrated with third-party wallets to provide convenient transactions.
Auction and Sales
Property owners can conduct sales and auctions to get a better price for their real estate. Other users can propose their value for the property showcased in the auction
It is also important to provide an interactive experience on the platform rather than focusing on just the technical aspects. It is also important to provide an interactive platform experience to users so you can retain them for a long time.
Developing an NFT real estate marketplace is a herculean task that requires a lot of effort and resources. You will need developers who are well-versed in blockchain technology. Let’s take a look at the step-by-step guide to developing a property marketplace.
1. Market Research
It is important to have a deep understanding of the industry you are about to dive into. Proper market research will enlighten you about various crucial aspects like competitors, industry trends, and audience preferences. This information can be notably useful for businesses providing NFT real estate for sale. Conducting proper market analysis will allow you to build reliable, scalable, and customized NFT solutions.
2. Hire Dedicated NFT Property Marketplace Developers
If you want to create a robust and secure NFT for real estate marketplace platform, it is essential to hire dedicated developers who are well-versed in working in blockchain technology. The developers are the backbone of the development process and are integral in simplifying the development process. However, different regions have varying rates for developers, make sure you hire nft developers according to your budget in order to complete the development process within an estimated budget.
3. Design & UI Development
Along with interactive features, it is also important to offer an aesthetic design to users that is eye-catchy and attractive. The design and user interface is the first thing a user notices while using any platform. A great design can turn your viewers into potential customers rather quickly. You will need to hire capable real estate NFT UI designers who can use their knowledge of product design and materialize a functioning UI with all the features in the right place.
4. Establishing Blockchain Ecosystem
This is probably the most important step of the development process. Blockchain is used to store property NFTs and ensure their security and smooth functioning. Real Estate NFT developers use frameworks like Drizzle, NFT Real Estate Marketplace Development – Step by Step Guide | BR SoftechGanache, and Truffle to implement top blockchain platforms. Smart contracts are also coded and implemented by the developers into the marketplace. NFT Real estate marketplace is established on blockchains like Ethereum, Binance, Solana and Polygon.
5. Integrating a Crypto Wallet
One of the most important requirements of an NFT real estate marketplace is integrating a crypto wallet. Crypto walters are integral in the inclusion of crypto tokens and provide secure transference of gas fees on both ends.
It is essential to integrate a crypto wallet with capabilities that fulfil the needs of a blockchain-enabled NFT marketplace in order to conduct safer transactions. There are a number of varieties when it comes to crypto wallets. Moreover, you can also hire a crypto wallet app development company to develop a bespoke wallet for your NFT real estate marketplace.
After you are done with the development process, the next step is to initiate testing every important element of your marketplaces such as features, functionalities, NFTs, and interface. Look for the flaws and errors that may have been overlooked during development and refine your product so that it’s ready for deployment.
7. Deployment and Launch
Once the testing is complete and the product is ready for deployment, it is time to deploy it securely and seamlessly. Smart contracts and other external resources will be integrated into a single bundle with flexible deployment.
You can launch your real estate NFT marketplace on various platforms.
The cost to create a Real estate NFT marketplace can vary depending on your business requirements. If you want to build a customized NFT marketplace from scratch, the development cost will be considerably higher than buying a readymade solution. Moreover, there are various factors that influence the development cost of an NFT marketplace such as
NFT Tech Stack
NFT Marketplace Niche
Location of the Development Team
On average, the average cost of creating an NFT property marketplace can range somewhere from $50,000 to $100,000 depending on your business requirements.
Now that you are familiar with the process of developing an NFT Real estate marketplace, let’s take a look at the top Real estate marketplaces.
The OpenSea platform allows two methods of purchasing or selling NFTs. The seller can either list the property at a fixed price or it can be sold at an auction where the buyer can submit bids. OpenSea offers a wide variety of digital goods, digital artwork, and real estate. This platform provides some rare one-of-a-kind virtual properties.
2. Polka City
Polka City provides users with the ability to trade and sell virtual locales. One of the most lucrative features of Pola city is that it is accessible and can be joined without the need of opening a new Blockchain wallet.
It is a renowned and reliable NFT real estate marketplace. The platform provides pixelated world aesthetics that is appealing to users and you can easily buy these virtual lands simply with your virtual wallet. It is estimated that around 80% of the land sold in Cryptovoxels is already developed.
Decentraland is a well-known and reliable marketplace for virtual goods. It is one of the first full-fledged Metaverse that allows users to purchase virtual lands and participate in a virtual community. Decentraland is a Metaverse where players can engage, connect and play games with other users in an open-world environment.
NFTs are still a new concept for the general public who aren’t quite aware of the possibilities of blockchain technology. Real estate is one of the most profitable properties that can be turned into NFTs. Many big companies like Goldman Sachs and Microsoft have already purchased lands worth million on popular Metaverses like Decentraland. Virtual lands of the Metaverse are highly dependent on NFTs, making creating an NFT Real Estate Marketplace technologically and commercially viable.
NFTs in the real estate marketplace are the proof of ownership of a particular virtual or real land.
Q.2 How to Buy NFT real estate?
In order to buy NFT real estate, you can visit an NFT real estate marketplace and browse your favourite property. You can make the payment via cryptocurrency or fiat currency and the NFT of that particular property will be transferred to your wallet.
Q.3 Can I create my own NFTs and sell them on the marketplace?
Yes, you can create your own NFTs. They can be anything from art, music, memes, and photos. Your NFT should have a unique identification and a metadata that is different from other tokens.
I am Nitin Garg Founder of BR Softech PVT LTD - an Award-winning, app, web & game development company. We are armed with 180+ geeks & 2753 clients worldwide, I have driven by the spirit of entrepreneurship and dream to build a billion-dollar-company.
BR Softech Pvt. Ltd. excels in providing cost-effective IT Solutions. Established in August 2012 with over 10+ years of rich experience. An Apex rated IT serving company around the world. Our team of innovative and creative designers deals in web designing, and mobile game/software development intending to deliver outstanding digital outcomes.