A New Wave in Technology and Real Estate Investment

Article published in Akiya Lab | Roopt (Makigumi)

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

Innovation in Construction Technology

The evolution of construction technology in recent years is changing the traditional concept of depreciation periods. Modern buildings now possess durability that allows for use over 100-year spans. 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 the usable life of buildings should be considered semi-permanent in the coming era.

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 facilities.

Liquidation of Investment

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

Renovation and Utilization

There is an increasing number of cases where landowners and building owners undertake renovations and plan for subsequent utilization. When renovation companies can more easily procure funds, more projects become feasible. In particular, high yields on investment can be obtained 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. Improved construction technology, evolving quality assessment, investment liquidity, and new approaches to renovation indicate the future direction of real estate investment.

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