The issue is more nuanced, for instance:

- “trophy” real estate carries a higher monetary premium and it is likely to retain it because it is objectively scarce (unique location, unique architecture, period buildings etc). This is less than 1% of the properties.

- properties with a yield will be repriced according to the yield and alternative investment yields with similar risk profile.

- all the rest will gradually lose the monetary premium and revert to utility value depending on characteristics of the property and its relative supply-demand on the specific market.

- generally though, excluding the first 2 variables above, real estate should be increasingly demonetized as an asset class if #bitcoin adoption as a SOV increases. This, however, will be contingent on how governments will act because they cannot afford a real estate collapse. Real estate is one of the biggest sources of tax revenue for all governments. Therefore the incentive will be to keep interest low and keep the bubble afloat. On the other side there are strong deflationary forces. Consider the EU for a second. In the last 40-50 years the middle class has used real estate as its main SOV. The middle class was growing wealthier and many had second and even third houses. Usually empty. No returns, just maintenance costs. Now the middle class has been decimated and they cannot afford such properties anymore. Where is all this stock of properties going? Think about it…

Below some excerpts from a Chapter of my book on that topic