Japan is a fast-growing country with advanced metropolitan cities like Tokyo. The country shows great devotion to the betterment of its nation but like every country, it faces its share of challenges, one of which is rather interesting: there are more than 8 million abandoned houses located in rural areas.
Now, two companies have built a platform powered by blockchain technology to reconstruct the abandoned houses.
A joint development by LIFULL and Securitize has proven that blockchain technology is more effective in crowdfunding compared to traditional Japanese real estate fundraising methods. A Social Funding company, LIFULL, has joined hands with Securitize to develop a platform to reconstruct houses that were destroyed by natural disasters or became completely abandoned in Japan. Carlos Domingo, CEO of Securitize, shared:
“Our collaborative success in creating a comprehensive platform solution for crowdfunded real estate funds is very exciting, and it is a great start for Securitize and LIFULL as we work to modernize the Japanese real estate market together.”
Blockchain in the Japanese Countryside
Securitize provides a unique real estate opportunity for investors to claim a stake in rural areas of Japan. LIFULL shared its thought about the project:
“To address vacant houses nationwide, it is necessary to actively promote renovation and conversion of these homes for other uses to maintain and improve the value of the real estate. That’s a difficult problem. Regional revitalization of real estate crowdfunding is being promoted as a solution to this problem.”
The major reason that makes rural areas unwanted is that the basic living facilities are closed due to low attendance. People move to major cities to improve their living standards, as job vacancies and general life convenience are easily available. With Securitize, LIFULL aims to open a gateway for the development of the Japanese countryside and hopes to make the unused locations more desirable through the crowdfunding of community enhancement ventures.