In 2021, an apartment in Kyiv sold for $124,000. That might not sound like a groundbreaking or even newsworthy story, but this wasn’t just your regular studio. It was a non-fungible token (NFT).

The apartment, which was the first property to be sold using blockchain technology back in 2017, was owned by Michael Arrington, founder of TechCrunch. Arrington decided to sell the studio as an NFT to emphasize how these digital assets are reshaping the industry.

It was the first of many successful blockchain real estate deals that have taken place since, capturing widespread attention and drawing in buyers, investors, and the curious. 

Now, with NFTs moving into the mainstream and predicted to reach a value of over $210 billion by 2030, many are wondering: do real estate NFTs make a good investment?

A change in how we invest in properties looks to be just around the corner. Here’s what you need to know about NFTs for real estate, including how they work, the benefits they offer, and how you can buy them. 

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Below, we cover:
What are NFTs and how do they work?
How do NFTs work in real estate?
Concrete & blockchain: an innovative approach to building and investing in real estate
The road ahead
FAQs

What are NFTs and how do they work?

A non-fungible token or NFT is a digital token that acts as a representation of value, whether it be currency, digital, or physical goods. These assets represent ownership and are bought and sold online, typically with cryptocurrency.

NFTs exist on a blockchain, a distributed public ledger that records transactions. You’re probably most familiar with blockchain as the underlying process that makes cryptocurrencies possible.

Though NFTs have been around since 2014, they broke into the mainstream in 2021, during the Covid-19 pandemic, when digital culture took center stage. High-priced digital artworks and collectibles attracted media attention and public interest. People weren’t just buying a digital file; they were buying a piece of history, a status symbol, and, in some cases, a speculative asset.

Beeple’s “Everydays: The First 5000 Days” digital artwork was auctioned as an NFT by Christie’s in March 2021 and was sold for $69,346,250

How do NFTs work?

To understand how NFTs work, we have to first look at the concept of fungibility. 

Physical money and cryptocurrencies are fungible, which means they’re equal in value and can be traded or exchanged for one another. One dollar will always be worth another dollar, and it doesn’t matter which particular one you own. NFTs are different. Each one has a digital signature that makes it impossible for NFTs to be exchanged for or equal to one another—aka they’re non-fungible.

The real beauty of an NFT is that it’s programmable through an inbuilt smart contract—a self-executing agreement with the terms written into code. Think of it as a digital rulebook that checks itself. 

An NFT is created or minted from digital objects that represent both tangible and intangible items, including art, GIFs, sneakers, videos, properties, collectibles, or even tweets. In fact, Twitter co-founder Jack Dorsey sold his first ever tweet as an NFT for $2.9 million.

The first ever tweet on Twitter, sold off as an NFT by its creator

 

What makes NFTs valuable?

An NFT essentially proves that the digital or real-world asset it represents is genuine and unique. And since NFTs can have only one owner at a time, their value comes from their scarcity. 

Why is proving originality important? Because anything that exists in the digital world can be copied and shared an infinite amount of times. However, just like anything that exists in the physical world, there is only one original—even for digital assets.

Leonardo da Vinci’s “Mona Lisa”, for example, has millions of iterations—on magazines, posters, mugs, and more. And yet, there is still just one original painting—the one that da Vinci painted in Florence in 1503, which is currently on display at the Louvre Museum in Paris.

Despite its many copies (and the billions more that are still to come), da Vinci's original artwork will remain the most valuable. Similarly, NFTs attach value to assets by proving their originality in a sea of copies.

What are NFTs used for?

So far, most NFTs have appeared to be works of digital art or fashionable alternatives to cryptocurrency investments. But as we understand more about how they work and what they can do, NFTs are beginning to extend to other facets of life and business.

NFTs have a range of applications and use cases. Some NFT collections grant access to exclusive groups, online and in-person events, or unique merchandise. Others are being used to sell digital memorabilia and as a way for musicians to monetise their work directly.

With how versatile NFTs are, they’re soon likely to find new uses as the technology evolves, shifting from speculative trading to practical utility. Welcome to NFT 2.0.

How do NFTs work in real estate?

When you think “real estate”, what’s the first thing that comes to mind? If it’s sluggish procedures, high closing fees, and a lack of innovation, you’re not wrong. 

The real estate sector has long been associated with reams upon reams of paperwork and antiquated systems. Now, NFTs (and the blockchain technology they’re a part of) are replacing these outdated practices with modern solutions.

A real estate NFT is created by registering a real-life asset, either tangible (like a house, an office building, or even a hotel), or intangible (like patents, stocks, or intellectual property), on a blockchain. They transfer directly and simply between peers and come with a host of features and advantages:

• Faster transactions: smart contracts used for real estate NFTs automate processes, making it a very efficient way to buy, sell, or invest in a property
• Secure data integrity: all investments and transactions are secure, easily tracked, and verified by leveraging the strengths of blockchain technology that works round-the-clock
• Transparent and accessible process: taking real estate records from a corruption-riddled and inefficient system to a transparent and secure record of ownership of properties, that cannot be tampered with or altered in any way
• Better liquidity: NFTs offer a way to add improved levels of liquidity to a notoriously illiquid industry by making it easier for investors to access the real estate market and participate with smaller amounts of capital and greater flexibility
• Less bureaucracy: depending on where and under whose jurisdiction the transaction takes place, buyers, sellers, and investors have the capability to deal directly, eliminating the necessity for intermediaries (such as banks and attorneys), extensive paperwork, or costly fees 

Generally, the process of investing in that NFT can happen either through tokenization or fractional real estate investment. They’re two distinct concepts, even though they may sometimes overlap. Let’s take a closer look at what that means for you as an investor. 

Real estate tokenization

Real estate tokenization is a process where the property rights, value, or cash flow of a real estate asset are converted into digital tokens on a blockchain platform. 

This process classifies these real estate concepts as Real World Assets (RWAs), a class of crypto tokens that represent tangible or intangible assets that exist outside the digital spectrum.

Why would anyone do that? Well, tokenizing real estate assets as NFTs creates a record of ownership and every transaction that they’ve ever been or will be a party to. This makes them more efficient to buy, sell, trade, and invest in while also lowering the risk of fraud.

Real estate NFTs can either represent fractions of the real estate property, the entire asset, or the rights to participate in the revenue generated by it.

Fractional ownership (FO)

This method of investment allows people to gain exposure to the real estate market with limited amounts of capital by breaking a property down into smaller, more affordable portions. 

Think of fractional ownership tokenization as a crowdfunding platform, which helps investors in buying shares. But, instead of money in a GoFundMe account, tokenization investors use NFTs on the blockchain for their transactions.

The fractional owners have a specific number of tokens representing their share in the asset. The tokens are also used to digitally map properties on the blockchain or to raise capital to develop investment properties.

Entire asset (EA)

Entire asset tokenization, on the other hand, requires the conversion of the actual property deed into an NFT. This poses problems due to the regulatory environment surrounding real estate investments. 

To fully embrace this approach, lawmakers need to pass legislation for creating a new asset class that allows deeds to exist in the form of NFTs. 

Fractional real estate investment

Fractional real estate investment is a process where investors purchase properties that have been divided into smaller shares or units that are sold at lower prices than if they were buying the entire property.

Some of the most popular real estate investment activities include: buying and renting residential or commercial property, developing and selling residential or commercial property, and investing in real estate funds or REITs (Real Estate Investment Trusts).

You can think of fractionalized real estate investing like a timeshare. But, instead of owning units of time, you own part of the property and earn passive income from rent and make profits from property sales, or by selling shares at a higher value than what you initially paid.

Both fractional real estate investing and real estate tokenization allow investors to own pieces of larger investments. The main difference is that tokenization takes place on the blockchain, whereas fractionalization uses physical currency. Which one is best for you depends on your financial situation and investment goals. 

"The tokenization of real world assets isn't a thing of the future; it's happening now. We estimate that the total market for tokenization by conservative estimates will significantly exceed USD 10 trillion by 2030." Pierre Samaties, Roland Berger Partner

 

Global consulting firm’s Roland Berger’s conservative forecast of the RWA market size

Concrete & blockchain: an innovative approach to building and investing in real estate

At Build21, we're dedicated to enhancing lives by building safe, modern housing and buildings—structures that are not developed solely for profit but also for the benefit of the communities that use them. And with one of the highest homeowners rates in Europe (95%), but over 40% of them living in overcrowded households, Romania is a great place to start. 

To do that, we need to democratize how Romanian real estate is financed. No more waiting for preferential contracts to be signed and exchanged, no more middlemen to slow things down. Just safe, transparent, and reliable investing into developments that stand out and also stand for something more. 

What we stand for

Here's the exciting part—we've developed a strategy that not only benefits residents but also investors like you. 

Picture this: real estate investment that is within reach for everyone—thousands of like-minded individual investors who will be able to make decisions about where to develop, with which architectural solution, and with what yield.

To make real estate financing accessible to everyone, we're tapping into the power of blockchain technology and DeFi principles. Our unique approach involves RWA tokenization via NFT collections that give investors access to the developer's returns.

By entering a joint venture with the real estate development companies behind each Build21 project, you secure your priority share of the profits generated from their sale. None of the trials and tribulations that come with property development; just pure profit potential.

By turning directly to individuals, our unique system empowers small- and medium-scale investors to take part in the profits that come with the development and sale of the real estate projects, without taking on any of the development costs. Everybody benefits:

    • Investors grow wealth safer and easier

    • Developers raise capital with more freedom and flexibility

    • People using what we build benefit from sustainable and health-promoting spaces

In our relationship with the Romanian real estate community, we are guided by the following principles:

    • Expert-led: we’re a team of architects, engineers, contractors, urbanists, sociologists, real estate developers, project managers and more, with over 20+ years experience in our fields.

    • Community-driven: experts, investors, users. We create real, dynamic communities that share a common vision: real estate investing where communities come together and users thrive.

    • Human centric architecture: we believe that the spaces we live, work, and spend time in have a major impact on our quality of life. Every Build21 project takes into account the mental health, physical wellbeing, and prosperity of those who use them.

    • Properties with purpose: we started Build21 so retail investors can get involved in real estate developments with affordable investments. Our goal is to offer one of Romania's best investment products, delivering strong returns and keeping associated costs accessible. 

    • Easy & simple: Build21 makes it easy to enter investment markets, regardless of wealth or location. You don't need to be a millionaire, risk your life savings, or be an expert to invest in real estate.

    • Real World Assets (RWAs): Build21 exists between two realms: real world construction and blockchain investment opportunities. We develop the buildings as well as the technological and legal framework needed to build the future of real estate. 

    • Powered by Web3: with Build21 you can invest in tokenized RWAs in a very user-friendly way—totally transparent and easy to use from a mobile app powered by MultiversX and Bhero. 

   • Unique tokens: each Build21 project is distributed across a unique and limited set of representative NFTs. Based on token type and share, investors can collect revenue from profits, get a discount on the purchase of a Build21 property, and vote on decisions.

    • SPV-owned: each Build21 property is owned and developed by a Special Purpose Vehicle (SPV) company and made available for investment. This allows investors opportunities to invest in development projects or trade their participation rights on authorized marketplaces.

    • Above board: we're committed to transparency, making sure you know exactly how your investments are performing, and we adhere to rigorous corporate governance standards to protect your interests.

    • Safe & legal: Build21 is compliant with MiCAR (Markets in Crypto-Assets Regulation) recommendations at European level, aligned with Financial Supervisory Authority norms and with AML (Anti-Money Laundering) requirements.

How we use NFTs at Build21

Our NFT ecosystem is centered around inclusivity and transparency in real estate investing, making sure that everyone has a chance to thrive. 

Here’s how it works, and how you can get involved:

21 real estate projects with social impact, all funded via blockchain

We’re building 21 diverse real estate projects that will reset the benchmarks for the next 100 years in terms of:

    • Sustainability

    • Efficiency

    • Aesthetics

    • Quality of life

Our goal is to have a true, positive impact on the Romanian real estate market by providing quality, modern, and sustainable housing and buildings. These spaces will be designed and executed to:

    • Respect the architectural heritage and specificity of the area in which they are developed

    • Contribute to the physical and mental health of those who live, work, and spend time in them

    • Provide a context for connecting and engaging the community by designing common cultural spaces

    • Lay the groundwork for future generations by building efficiently and durably and by optimizing resource consumption

The Build21 NFT ecosystem

The Build21 ecosystem uses a dual-token model to help each community member get their fair share of value and say in decisions:

    • Build21 Helmets NFT: the token that gives you access to the ecosystem 
One collection of utility tokens that grants membership, governance, voting rights, and access to the other collections of Project NFTs.

   • Project NFT: the tokens that become your revenue stream
21 collections of security tokens, one for each of the projects, that act as a Joint Venture Agreement (JVA) allowing investors to claim their proportionate share of the associated returns. Each Build21 project has an estimated total return of 40% over 2-3 years.

Only holders of the Build21 Helmets NFT can purchase Project NFTs. Investors can buy one or more Project NFTs to fund the projects. In return, they will receive a share of the value created by these developments, which is reflected in their profits and losses.

In addition to these main NFT collections, Build21 will also offer two dedicated NFT collections designed for the other members of our communities:

    • User NFT: collections that grant residents benefits such as real time structural health monitoring, governance in owners association, or access to building generated revenue streams

    • Expert NFT: collections that grant specialists that contribute to Build21 projects benefits such as voting on company decisions and architecture contests or opportunities for future collaborations

The road ahead

Investing in real estate is often seen as a milestone of financial success—but it’s a dream that many struggle to achieve. High upfront capital limits, liquidity constraints, and strict regulatory compliance often leave small and medium investors locked out of the market. Build21 offers a solution to this problem. 

The launch of the first Build21 collection that gives you access to the entire NFT ecosystem will take place in 2024.
Join our investor community to find out when, where, and how you can get involved.

We believe in the impact that good quality construction has on people's lives and we have faith in the future of the real estate market in Romania and the region. 

Romania deserves real estate that pays more attention to what people really want. So let’s build it ourselves.

Get access to the entire Build21 NFT ecosystem

Join our Telegram channel to be among the first to know the exact date of the first Build21 minting and get in on the ground floor.

FAQs

Why blockchain technology?
The blockchain infrastructure allows us to share good returns, perks, and decision-making power with all members of the Build21 ecosystem.

Who can invest?
The public offer is intended for both individuals and companies. The assets are accessible to both residents and non-residents, Romanian or foreign, provided they are at least 18 years old and go through a mandatory KYC/KYB procedure.

How is an NFT different from cryptocurrency?
While both NFTs and cryptocurrencies are digital assets built on blockchain technology, they serve different purposes and have different properties.

Cryptocurrencies like Bitcoin or Ethereum are fungible and primarily used as currency or investment. Unlike cryptocurrencies, each NFT is distinct, indivisible, and represents ownership of the entire asset. NFTs enable creators and collectors to tokenize, trade, and prove ownership of digital or real world assets.

More FAQs here.

Bucharest, June 18th - Build21, a real estate company developing 21 unique projects focused on quality of life, announces the results of a market study measuring retail investors appetite for the real estate sector. According to the results obtained by MKOR, Romanian retail investors prioritize the real estate market, regardless of their investment power: those without experience in this sector have funds starting from €1,500, while experienced investors primarily aim to purchase a property within the next 12 months.

 

The MKOR study considered a sample of 255 respondents, representing retail investors aged 20 to 55, with individual incomes of at least 4.000 RON per month and residing in medium and large urban areas. Of these, 66% are experienced real estate investors with at least one prior investment of this type, while 35% of respondents declared their interest in the real estate sector and plan an investment of at least €1.500 in the next 12 months.

 

Regarding general investment habits, the study shows that investors prefer low-risk investment products, with 8 out of 10 respondents investing in bank deposits and certificates of deposit.

 

Besides purchasing a property for personal use and as an investment, experienced investors frequently invest in ETFs and real estate funds (63%) and real estate investments through crypto tokens (57%). Additionally, 6 out of 10 respondents with real estate investment experience have also invested in cryptocurrencies, while 1 in 2 have invested in blockchain technology.

 

"At Build21, we aim to be the best real estate investment option for small and medium investors. We democratize access to real estate investments in Romania with accessible amounts while creating a community of investors around the 21 real estate projects we will develop. We use blockchain technology to provide our investors with the opportunity to engage, as well as safety and transparency for their investment," states Ing. Adrian Vasilescu, CEO and Co-founder of Build21.

 

For those planning to invest in real estate in the next year, the top criteria for choosing an investment are risk and return (51%) and investment costs (49%).

 

When discussing their expectations from existing real estate projects, 58% look for the provision of basic services (running water, gas, electricity) and 47% for safety and resistance to natural disasters. A smaller percentage are interested in green spaces (37%) and road infrastructure and pedestrian areas (36%).

 

"Romania deserves a higher standard in real estate, emphasizing construction quality and the impact on the lives of those who use it. For this, we need to change the mindset from investing in products that only meet basic needs, such as gas connections, to products with long-term value and significant social impact," declares Ing. Adrian Vasilescu, CEO and Co-founder of Build21.

 

The information was obtained from the market research conducted by MKOR in February-March 2024 for Build21. Build21 is a real estate start-up in Romania aiming to design and construct 21 real estate projects, which will set benchmarks in terms of sustainability principles, efficiency, aesthetics, and care for quality of life.

The study's methodology involved both quantitative data from an online survey and qualitative data from in-depth online focus groups. The online survey was based on 255 respondents, while the focus groups included 8 participants.

 

About Build21

Build21 is a company developing high-quality real estate in Romania. Build21's projects are designed to have a positive impact on the physical and mental health of those who live in them, as well as on the built heritage and future generations. The company engages with multiple communities interested in the proper development of projects: multiple investors, experts with portfolios recognized in renowned design and architecture competitions worldwide, and residents of the constructed spaces. Moreover, the company aims to democratize access for small and medium investors through blockchain technologies.

 

About MKOR

MKOR (https://mkor.ro/) is an innovative market research agency that combines practical business experience, MBA-level know-how, and top expertise to offer a deep understanding of the business environment. MKOR covers all types of research and offers increased flexibility to its clients to understand and deliver the most detailed market insights. MKOR develops a series of proprietary research projects, which you are invited to explore for free on the agency's website: https://mkor.ro/studii-piata-proprii.

 

How Blockchain Is Revolutionizing Real Estate: Inside Build21's Innovative Approach

Imagine not just one, but twenty-one construction sites, all buzzing with groundbreaking blockchain technology. At Build21, blockchain is not just a tool; it's a game-changer that’s about to revolutionize the real estate industry from the ground up.
Traditionally seen as a bastion of complex transactions and exclusive investment opportunities, the real estate industry, is on the brink of a revolution thanks to blockchain technology, and Build21 is here to make it happen.
If you need a good reason why this could be the future, look no further.
Here are seven reasons, one for every day of the week:

1. Community-centric approach in blockchain real estate
   At its core, Build21 is about empowering communities. Blockchain technology enables a unique ecosystem involving various stakeholders: architects, engineers, builders, legal professionals, sociologists, end-users, and investors. This approach ensures that everyone involved has a voice and a stake in the development processes. By facilitating widespread participation, blockchain technology helps ensure that projects not only meet regulatory standards but also the practical needs and values of the community they serve.
2. Opening doors to decentralized real estate investments
   One of Build21’s visionary goals is democratizing access to real estate investment. Blockchain technology allows the company to offer inclusive investment opportunities, making it possible for individuals across different financial backgrounds to invest in real estate projects. This is a significant shift from traditional real estate investments, which are often limited to wealthy individuals or institutional investors.
3. Ensuring transparency in real estate transactions
   Transparency is the cornerstone of trust and collaboration in any sector and it is particularly crucial in real estate. Blockchain’s transparency ensures that all actions are recorded on a public ledger, accessible to all parties. This level of openness helps build, not only a home but trust among stakeholders as well. It makes the decision-making process clear and accountable.
4. Disruptive innovations with smart contracts
   Build21 leverages blockchain technology to introduce disruptive innovations in the real estate sector. The use of smart contracts automates many of the processes that traditionally require manual intervention, such as escrow and title transfers, thereby streamlining transactions and reducing reliance on intermediaries. This not only cuts down on time and costs but also minimizes the potential for human error.
5. Empowering real estate experts with blockchain
   Blockchain also plays a crucial role in recognizing and rewarding the contributions of industry experts involved in Build21’s projects. Through Expert NFTs—non-fungible tokens that represent a stake or contribution in a project—professionals are acknowledged for their expertise, fostering a more collaborative and incentivized working environment.
6. Decentralized decision-making in property development
   Through decentralized governance mechanisms and voting protocols enabled by blockchain, Build21 ensures that all major project decisions are made collectively by the community. This setup allows stakeholders to directly influence the development direction, ensuring that projects align closely with user needs and community values.
7. Sustainability and blockchain in Real Estate
   Sustainability is at the heart of Build21's mission. Blockchain technology supports this by providing a reliable and immutable ledger to track and verify sustainable practices and compliance with environmental regulations. This ensures that every project not only promises to be eco-friendly but also proves it through transparent and verifiable measures.

Blockchain technology is set to radically transform the real estate industry by making it more inclusive, transparent, green, and efficient. Build21 is at the vanguard of this change, using blockchain to empower communities, streamline processes, and promote sustainability in real estate development.
The road ahead involves tackling technological adoption, regulatory challenges, and upskilling within the industry, but we're ready to make this a reality. We're one block away from the future.

It's time to build!
Build21

The first guest in the AMA Build21 series is structural engineer Horia Mihnea.

At Build21, Horia serves as an Advisor.

What follows are some interesting aspects discussed during the session.

To listen to the entire event on X, click here.

Enjoy! It's time to build!

April 17, 2024

AMA

Raluca: I know you've designed millions of square meters for various buildings across Europe... that you have strong expertise in the technical assessment of existing buildings... I know you're passionate about historic monuments and that these buildings are very dear to your heart, and you're concerned about how to extend their life and add value in Romania.

Horia: Yes, I'm an engineer with extensive experience in design, and I've encountered most of the situations that can arise from the perspective of buildings. Now, of course, any new experience is a challenge.

Raluca: To give you an idea of how we'll operate, I think you've already seen that we have some questions on the Telegram group, and you're also a member of our Telegram group. For those who are not, I encourage them to search for Telegram Build 21 and join the community... What does a structural engineer do?

Horia: ...primarily deals with conceiving and thinking about how... to evaluate and construct a building's structural system. Simply put: it's about where to pour, how to pour the concrete, how big the column is, how big the beam is, how big the slab is, so that buildings can be executed and used... To provide the building's structural integrity.

...

Raluca: If you could answer from your perspective as a structural engineer, how would you explain in the simplest way what we will build at Build21?

Horia: From a unique perspective, that of a structural engineer. We're talking about sustainability. It's the key element that can define the way buildings are constructed... what we do at Build21 is viewed from multiple angles. And it's not just from the engineer's angle. It rather focuses on communities, so a specialist's vision is only part of the vision that defines Build21... about creating communities and about the long-term utility of buildings... This is again another quite important topic we need to address, their durability and how they are perceived over time.

Raluca: What's the lifespan of a building?

Horia: Generally... now speaking strictly from the behavioral pattern of investors, it's oriented towards a designed lifespan, a standard, which is 50 years, meaning in 50 years this building is expected to be decommissioned both morally and not just morally, but also technically, as all technical references regarding how buildings are constructed relate to this lifespan of 50 years, a lifespan that, in most situations, is exceeded, because on the time scale of a building, 50 years is not a very long time; rather, after 50 years, you can begin to appreciate the values of the period in which it was built.

...

Raluca: ...a strong theme for the European Union. From your point of view, what does sustainability mean and how is sustainability manifested in real estate?

Horia: ...reducing the carbon footprint. However! It's something that needs to happen over time and any action we take must be balanced. This is done on the structure... The structure generally may represent half the total weight of a building. If it represents half the weight of a building, it more or less represents half the carbon footprint that a building leaves on the natural environment... To make a simple association. Raw force, put a lot of concrete to make it resistant. But there are also other solutions to make buildings resistant. And here are many other companies that have found some good recipes in this regard. One such company is the Japanese company. Another is the Norwegian company, which have found some solutions in this sense.

...

Raluca: What is the long-term impact of integrating blockchain in Real Estate, in the context of transitioning to a greener and digital business model?

Horia: ...Digitalization and especially blockchain can have a very positive long-term impact, through potential technologies that may develop around it. A feature of the blockchain is the impossibility of interfering with previously recorded data. This overlaps very well over key elements of constructions, such as degradations and the moment they occur, i.e., marking degradations, without the possibility of being hidden, so that any long-term monitoring of a building using blockchain technology can produce extremely favorable effects. Similarly, for any document related to this construction, the use of blockchain technology is extremely useful and combined with the direction of digitalization of the construction sector...

• Build21 is a 100% Romanian start-up, founded by Adrian Vasilescu and Raluca Negrea;

• The company aims to create 21 unique real estate projects in Romania, which will contribute to enhancing the quality of life for those who use them;

• The company creates a framework for retail investors to access these developments.

Bucharest, 23rd of April - Engr. Adrian Vasilescu and Raluca Negrea, two Romanian entrepreneurs, are launching a new start-up: Build21. 

 

Build21 is a real estate company that applies blockchain principles and infrastructure to enable retail investors to access its real estate developments. The company's founding members, along with a group of people who are passionate about construction, architecture, communities, and blockchain, aim to develop 21 diverse real estate projects that will serve as benchmarks for the next 100 years in terms of sustainability, efficiency, aesthetics, and quality of life.

 

"We founded Build21 with the goal of changing the Romanian real estate landscape by offering a new business model that actively involves, from the very early stages of the project, the three main communities interested in the success of any real estate development: investors, experts (architects, structuralists, builders), and those who use the final space. We embarked on this path alongside an established community of experts, driven by an ambition to leave a sustainable valuable built heritage for future generations. We are now opening the doors to retail investors who want to contribute to our mission", says Engr. Adrian Vasilescu, CEO and Co-Founder of Build21.

 

Adrian Vasilescu is a construction engineer and entrepreneur with over 17 years of experience. He co-founded Cross Structural Design, a structural design company launched in 2009, and 481 Engineering, a monitoring and consulting company focused on how construction behaves over time. At Build21, Adrian is responsible for the strategic direction of the business and its development.

 

The company focuses on built-to-sell residential projects in Romania's urban areas, but it will additionally focus on improving existing buildings that can be transformed into high-quality residential spaces.

 

Build21 aims to develop a community of thousands of investors, who will have the opportunity to support the 21 real estate developments that are unique in Romania, and to benefit from the value generated by them. The involvement of such a large number of people is possible through blockchain infrastructure. Later this year, the company will provide an opportunity for the public to join as investors in the financing of the technological infrastructure, as well as the legal and fiscal framework required for Build21 projects, via a first round of financing through blockchain technology.

 

"Build21 decentralizes access to investment for retail investors, allowing them to participate with affordable amounts in the 21 real estate developments. Over time, the company aims to create one of the best investment products for Romanian retail investors, in terms of yield and accessibility. All while maintaining maximum transparency towards our investors and respecting the best corporate governance practices", adds Raluca Negrea, COO and Co-Founder of Build21. 

 

Throughout her 20-year career in management and marketing, Raluca Negrea established and managed several technology and communication companies. Raluca holds an Executive MBA from the Maastricht School of Management and has previously worked with investors. Raluca is in charge of marketing, communications, and technology resource management at Build21.

 

About Build21

 

Build21 is a company that develops high-quality real estate in Romania. Build21 projects are designed to have a positive impact on the physical and emotional health of individuals who live in them, as well as on the built heritage and on the generations to follow. The company operates with multiple communities interested in the effective development of projects: multiple investors, experts with renowned portfolios from the world's most prestigious design and architecture competitions, and tenants of the built spaces. Furthermore, the company aims to utilize blockchain technology to democratize access for small and medium-sized investors.

 

Many sectors of the economy today are marked by uncertainty and volatility, and real estate is no different. You may be wondering if it's a good idea to bet on real estate these days and enter the Build21 ecosystem.

Most of our team at Build21 team consist of professionals in the field: engineers, architects, contractors and real estate project managers, each with 10-15 years of experience.

We decided to stay in the field and take on the mission of building 21 real estate projects for two reasons: we believe in the impact that well-built spaces have on people's lives and we have faith in the future of the real estate market in Romania and the region.

We have our own vision of this and a number of reasons that make us confident, which we share with you here:

Romanians need new, better buildings

With more than 95% home owners, Romania has the highest home ownership rate in Europe *1.

The vast majority of these homes were built during the communist period, are 40 years old or more and offer low living standards. According to Eurostat, Romania ranks 2nd in the EU in terms of the number of people living in overcrowded homes *2.

Old and depreciated buildings

According to Romanian law, the projected lifespan of residential buildings is 50 years.

Thus, most of the housing stock in urban areas in Romania, build by 1989, is rapidly exceeding its maximum lifespan. This will make financing the purchase of such a dwelling increasingly difficult and will create a significant new demand for housing eligible for housing loans.

Dynamics of dwellings built in Romania between 1951 and 1989
Data source: National Institute of Statistics, Statistical Yearbook of Romania 1981-1990.

Data source: National Institute of Statistics, Statistical Yearbook of Romania 2007-2011, for 2011 provisional data *3.

Growing local markets

Beyond Bucharest and regional hubs such as Cluj, Timisoara and Iasi, which have traditionally attracted investments, in recent years more and more small and medium-sized cities are developing.

Cities such as Brasov, Craiova, Oradea and Sibiu are growing: some are encouraging migration and hosting new communities, while others are strengthening their economies through investments.

Real estate projects in all segments are growing in number, size and investment value in dozens of cities.

 

Prices will continue to rise

EU house prices have been on a steady upward trend over the last 10 years: between 2015 and 2021 they have increased by 38% *4.

Today, Romania has the lowest prices per sqm for housing in the European Union, after Greece. From here, prices can only continue to rise. In fact, they rose by 12.8% in a single year, between 2021 and 2022.

In addition, housing in Romania is some of the most affordable in Europe - while Slovaks can buy a 70 sqm house in over 13 years, Romanians can do it in about 6 years *5.

That's how we see it. We believe that the changing lifestyle of Romanians, supported by the constant growth of incomes, generates a growing need for new, good quality buildings. This demand, coupled with low prices compared to other European markets, makes Romanian real estate a solid investment opportunity in the medium to long term.

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Data sources mentioned in this article:

1. Homeownership rates in selected European countries in 2022, by country, Statista
2. Living conditions in Europe - housing, Eurostat, 2023
3. Analysis of the current housing situation in Romania in the European context, Transylvanian Review of Administrative Sciences, No. 43 E/2014, pp. 5-24
4. The living sector in CEE - 6, Colliers, 2023
5. Deloitte Property Index 2023, Overview of European Residential Markets, 12th edition, August 2023