Blockchain has the capability of changing almost any industry that embraces this technology. Real estate companies that incorporate it are finding that there are numerous ways to integrate the tech into their current systems.
One of the primary goals that agencies within the real estate industry hope to accomplish with blockchain is an improvement in data tracking. Firms can track property transactions in real-time situations with this tech, making it easier to prevent corruption and stop fraud. It may even have the power to prevent some forms of financial instability.
There are several additional blockchain use cases in the real es tate industry that offer a lot of promise to consider too.
How Blockchain is Changing Real Estate Transactions
One of the most fascinating ways that blockchain changes the real estate industry is through the digitization of assets. Bloqhouse offers a platform that makes it possible for fund managers to use certificates, shares, and bonds for liquidity purposes. Companies can choose to sell shares of a company or manage customer investments with minimal administrative duplication. Almost any property that would traditionally lock cash up into the asset can be turned into easy-to-trade items with this approach.
Real estate professionals can also use blockchain to streamline the process of purchasing a home. Lantmateriet works with ChromaWay to create a platform that allows for transactions to occur, taking the time for a sale of a house from up to six months to less than a day. Even though the project is Swedish, the buyer and seller location can be anywhere in the world.
Land titles are easier to manage when using blockchain as well. The Republic of Georgia joined with Bitfury to conduct registrations across the country. The goal is to expand this platform into the purchase and sale of multiple titles and deeds, with the first sale occurring in 2017.
Rental management is more straightforward because of blockchain since it offers a decentralized ledger for users. Tenants can use this technology to pay their rental fees, find apartments, or request maintenance services. Landlords benefit with its information storage, managing everything from credit reports to marketing efforts. This platform is currently live in over 45 countries due to the efforts of Rentberry.
Potential buyers and sellers can also use blockchain to find each other by streamlining the listing process. The platform built by Propy allows home buyers to request the properties they want, making it faster and easier to find sellers that want to work on fulfilling those wishes. It provides secure data exchanges and storage.
Blockchain in Real Estate Provides Investment Opportunities
The main functions of blockchain in real estate involve the ability to raise capital and the provision of secure, streamlined services. Whether someone wants to turn a property into something with better liquidity or facilitate a transaction, everyone saves time and money because there is no longer the abundance of administrative tasks to complete.
Although some of the blockchain use cases for real estate are still under development, proof of concept has been established in this area. This technology makes real estate a faster, cheaper, and immutable process.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.