Up above the world so high

Like a diamond in the sky

If only there was a diamond

or maybe there is

Not too long ago, Howard Hughes Holding Company acquired $40 million in air rights for their 250 Water Street project at South Street Seaport in NYC

But why?

1/

Before we delve into the why, there is a good chance that this might be your first time & therefore your introduction to air rights

When you buy a piece of land, you own it

Right!

But what about the sky above it?

What about it?

Glad you asked

2/

According to Binance Research, RWA market cap has doubled in 2024, hitting 12 billion+

Largest sectors include tokenized bonds and private loans

Trends like air rights, carbon credits, and art tokenization are emerging

3/

As cities are becoming increasingly crowded, spaces are shrinking and the population is exploding

There is only so much that can be done on the ground

Therefore, it is only logical to go up vertically

4/

Airspace

While it all depends on the local laws and the jurisdiction,

In certain cities like NYC, a small portion of the airspace above can be claimed by the property owner

This unlocks new opportunities for infrastructure, urban development, transportation, innovation & growth

5/

Ownership

In these cities, Property ownership is rather described as a “bundle of rights”

The bundle includes — surface, subsurface (beneath), riparian (water usage) & development

Development rights can be transferred from one property to another (as per local zoning laws)

6/

Air Rights

Simply put, owning the space above your property

What space?

The air above it

These are the legal rights to use, lease, or develop the space above a property

7/

Limitations

Even though air rights provide development opportunities, these are restricted by other regulations & restrictions (zoning, historic, legal)

To offset these limitations, air rights can be utilised through zoning lot mergers & transferable development rights (TDRs)

8/

Claiming Air Rights

Claiming air rights elevates the potential of the property, both financially & otherwise

Imagine the possibilities

As this space evolves, so will the ideas and the prospects

And it’s happening

9/

Owning Air Rights

Your exclusive zone

& you decide what to do with it

Want to build tall structures zooming out of the face of the earth,

Protect your unobscured view of the ocean,

Add more floors to the building,

Do nothing,

Choose as you want!

10/

However, all this translates to one thing

- Sky waiting to be cashed in — &

Air rights becoming a new tradable commodity

A new market waiting to be taken over

New revenue streams, new property assessments, and more opportunities

11/

Some Use-Cases of the Space

- Construction of skyscrapers (Tokyo)

- Protection of historic views

- Elevated walkways (Malaysia)

- Advertising Boards

- Communication Towers

- Surveillance Equipment

- Air corridors for Drones (Drone-ways)

No stopping but your imagination

12/

@SkyTradeNetwork

A platform that recognized this early on

and offers to capitalize it

SkyTrade offers a marketplace for airspace

It tokenizes air rights

& this enables anyone to buy, sell, and trade them

Simply,

Manage the airspace above your property based on your preference

13/

Tokenized Air Rights

Through this new sub-asset class,

individuals and businesses can claim and trade (what wasn’t done before)

This ultimately brings in more investment and development

And, you earn from that part of your real estate which was unthinkable earlier

14/

Working

The platform creates monetization of airspace by

- Creating awareness about air credits

- Defining and verifying ownership of air rights and airspace

- Means to monetize the air credits — either through the expansion of vertical space or renting pathways to drones

15/

While the use cases offered are restricted atm, there could be a lot more in the future

We are exploring a new frontier and there are boundaries to be pushed

Soon, we could have pricing indexes, futures trading akin to stocks and commodities

16/

Want to capitalize the space above your property or trade other people’s spaces

Skytrade is the place to sign up

All it takes is an email

17/

You can claim your air rights by joining the waitlist

Skytrade Waitlist gets you

- Early access to the SkyTrade platform

- SKY points (Platform’s reward system)

- Rewards points for trading airspaces

- Exclusive updates on platform development

18/

Back to the 250 Water Street project

It will have a 27-story tower with 400 residential units

This not only lowers the purchasing power as the cost of the land is divided between more parties but also makes it a sustainable living option

19/

Time will tell how air rights shape the future of urban landscapes

It might take some time to bring more focus to air rights

But one thing is clear for sure, it’s not just the view no more

And like they say, the early bird eats the worm

Wonder where will birds go though?

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The information provided through this work is intended solely for educational purposes and must not be treated as investment advice. Any lapses in presenting any of the information correctly are ours alone. We disclaim any liability associated with the use of this content.