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2024·PropTech · Web3

FLATHOUSE

Automated property valuation in 3 seconds and blockchain-based fractional ownership — turning illiquid real estate into a tradeable asset class.

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3s

Valuation Time

10x

vs. Traditional Appraisal

€5M+

Properties Tokenized

01 / The Problem

Real estate is the largest asset class in the world — and the most illiquid. Traditional valuations take weeks and cost thousands. Buying a fractional stake in a property requires lawyers, notaries, and trust in opaque structures. FLATHOUSE wanted to compress weeks of appraisal into seconds and replace legal complexity with smart contracts — without losing the trust regulators and institutional buyers demand. The challenge: build a valuation engine accurate enough to be defensible to banks AND a tokenization layer that satisfies EU MiCA regulation.

02 / Our Approach

How we built it

01 · Data

Proprietary comparables dataset

Aggregated 2M+ Italian transactions from public registries, MLS feeds, and partner agencies. Cleaned, geocoded, and feature-engineered into a unified schema.

02 · ML Model

Gradient-boosted valuation

XGBoost ensemble with 60+ features (location, square meters, floor, condition, neighborhood vibrancy, school proximity, transit). Cross-validated against bank appraisals — within 8% MAE on average.

03 · Blockchain

ERC-3643 compliant tokens

Built on the T-REX standard for permissioned tokens. KYC/AML integrated at the smart contract level. Each property issued as a separate token with transfer restrictions enforcing regulatory rules.

04 · Compliance

MiCA-ready from day one

Worked with regulatory counsel to structure tokens as Asset-Referenced Tokens under MiCA. Full audit trail, on-chain identity verification, transfer agent integration.

03 / Stack

What powers it

Next.js + tRPC

Type-safe API across client and server, end-to-end

Python + XGBoost

Production ML pipeline with model versioning and A/B testing

Solidity (T-REX)

Permissioned token standard compliant with EU regulation

Polygon

Low gas fees for high-frequency fractional ownership transfers

Supabase + PostGIS

Real-time geo-queries on property data

AWS SageMaker

Model retraining pipeline with automatic deployment

04 / The Result

FLATHOUSE delivers automated valuations in under 3 seconds with accuracy comparable to professional appraisals (MAE within 8%). Over €5M in properties tokenized in the first cohort, with secondary market trades happening in minutes instead of months. The platform processes valuations 10x faster than traditional methods at a fraction of the cost. Most importantly: regulators approved the tokenization framework on first review — a rare outcome in EU PropTech.

3s

Avg valuation time

8%

MAE vs. appraisal

€5M+

Properties tokenized

10x

Faster than legacy

100%

MiCA compliant

0

Regulatory rejections

What used to take our team three weeks of paperwork now happens in three seconds — and the smart contracts handle compliance automatically.

FLATHOUSE Leadership

PropTech Founders

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BACCO

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