A New Wave in Technology and Real Estate Investment

Article published in Akiya Lab | Roopt (Makigumi)

Makigumi, which operates Roopt, regularly researches and publishes columns on case studies and other information related to the revitalization of vacant homes.

Innovation in Construction Technology

With recent advancements in construction technology, the traditional concept of depreciation periods is changing. Modern buildings now possess durability that allows for use over 100 years. Particularly in rental properties, share houses, and accommodation facilities, it has become clear that user satisfaction stems from different sources than before. Consequently, investors are beginning to question the application of standard depreciation periods, leading to differing views with financial institutions. The idea is emerging that in the coming era, the usable life of buildings should be regarded as semi-permanent.

Need for Quality Assessment

A new approach is required for building quality assessment. While the evaluation of updates for individual parts and the spread of inspections are progressing, further dissemination is needed. For detached houses, standardization of inspection reports is required. Furthermore, due diligence (DD) for asset valuation is proposed. Especially for older properties, the importance of inspections is increasing, and the value of a building can be enhanced through renovation of water-related facilities.

Liquidation of Investment

The liquidation of real estate investments contributes to maintaining high value. Illiquid real estate tends to be traded at prices below its true value. New investment schemes such as minor amendments to the Real Estate Securitization Act, real estate crowdfunding, and the utilization of DAOs and tokens are gaining attention. For example, the case of Roopt Kagurazaka demonstrates a concrete example using tokens. In exit strategies, maximizing value through liquidation is also a crucial point for investors.

Renovation and Utilization

An increasing number of land and building owners are undertaking renovations and planning their subsequent use. When renovation companies can more easily procure funds, more projects become feasible. In particular, high returns on investment can be achieved through operations such as vacation rentals. The collateral value after renovation is also high, making it a safe investment even with a full loan.

As technology advances, the world of real estate investment is also changing. Improvements in construction technology, evolution in quality assessment, liquidation of investments, and new approaches to renovation indicate the future direction of real estate investment.

First published: Akiya Lab (2024 - now integrated into this site)