Blockchain Is Changing the Future of Real Estate

The rapid development of Blockchain technology in recent years has been gradually changing the face of many fields and industries in life. Not being out-of-date, real estate is also changing day by day with what Blockchain technology brings. So what are blockchain applications in real estate?

Brief Definition of Blockchain

Blockchain: It is a shared, unchangeable ledger that creates favorable conditions for the process of recording transactions and monitoring assets in a corporate network. A tangible asset may be (a home, cash, vehicle, land, etc) or intangible (branding, intellectual copyrights, property, patents). For almost anything of value that blockchain networks can track and trade, reducing risk and costs for all involved.

The advantages that Blockchain technology owns can solve many challenging troubles in the traditional real estate field, such as:

Not for everyone: Dozens of barriers (such as from finance, banking, and quality control) make real estate considered not a play for everyone.
Transparency: Transparency in traditional real estate activities is a frequent question when cases of corruption, tax evasion, and money laundering still occur every year.
High costs: There are countless fees incurred during i transactions, for example, exchange fees, transfer fees, brokerage fees, and attorney fees.
Transaction speed: Many procedures and paperwork often make traditional real estate transactions take place extremely slowly.

Blockchain Applications in Real Estate

Below are some advantages of Blockchain applications in Real Estate:

Platforms and Markets

Traditional real estate is mainly concerned with listings and the connection between buyers and sellers. But in terms of blockchain, it facilitates online marketplaces and trading platforms to support more comprehensive real estate transactions.

For instance, ATLANT has developed a platform that uses blockchain technology to optimize real estate and rental transactions. By assets tokenization, everyone can invest in real estate by buying digital tokens representing real estate. That means assets can then be traded like stocks when exchanging, and the transaction can be done online.

Sellers can tokenize assets essentially the same as selling shares and liquidating that asset through a token sale using the platform. This token will allow buyers to trade it into fiat currency, with the buyer owning a percentage of the property.

No Intermediaries

As a matter of fact, the involvement of brokers, lawyers, and banks is an essential aspect of real estate. However, with blockchain, all of this might alter in the future. New platforms will be able to provide functions such as listing, payment, and provision of legal documents.

By eliminating intermediaries, buyers and sellers may maximize their profits by saving on commissions and fees for this service. It also speeds up the transaction procedure.

Increase liquidity and Fractional Ownership

Due to its high value and lengthy transaction time, Real estate is long-stand·ing considered an illiquid asset. However, this situation is no longer a big issue with the application of Blockchain technology.

Assets are “divided” which will be easy to buy and sell. The seller wouldn’t then need to wait for the buyer to be able to afford to buy the entire property to get some value out of their property. The real estate owners using Blockchain technology can also arbitrarily sell part of their property during the ownership process.

Transparent Deals

Transparency and clarity are at the core of every real estate transaction. Currently, the related parties of the real estate market are all trying to achieve as much transparency as possible, for example, on property valuation.

Of course, blockchain is not the answer to every problem in the real estate business. However, it creates a more detailed and transparent system that increases trust and reduces dependence on brokers.

At the same time, blockchain also helps speed up transfer times, improve cost efficiency, and open connections with other economic services that can support the real estate market. In the future, many experts expect blockchain to become a new standard for the real estate industry, thanks to the unique advantages that this technology can bring.

Smart Contracts

Blockchain technology can facilitate future real estate transactions, such as buying a new property with cryptocurrency. They lead to the birth of online real estate trading platforms in cryptocurrencies, where there are no exchange rate fluctuations or limitations on international transfers. As a matter of fact, many start-ups have also considered this as a channel to do business and raise capital effectively.

Cost effectiveness

The transparency associated with the decentralized network when applying Blockchain technology in the real estate sector can contribute to trimming down costs related to real estate transactions. In addition to the savings in middleman commission costs, there are other costs such as inspection fees, borrowing costs, registration costs, and taxes associated with real estate transactions. Once part of the automation system, the above intermediate stages can be reduced or eliminated.

Through Blockchain technology, more people can access the market where transactions can be made more transparent, secure, and fair. Real estate transactions can someday become genuinely peer-to-peer activities with blockchain-enabled platforms doing the majority of work.

Conclusion

Undoubtedly, with its advantages and steady growth, Blockchain is a promising technology that can revolutionize the real estate industry shortly.

Thank you for taking the time to read our article, and Sosene hopes this article will give you some useful information. If you are looking for an Offshore Software Development Team, Sosene is always here to support you. Sosene believes that bringing value to our customers is our mission, so please feel free to contact us.

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