How Blockchain Technology change Real Estate world

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As we know how Blockchain Technology is disrupting the banking or financial sectors as a form of cryptocurrency. Blockchain technology is being used in almost every industry. 

For Example, Blockchain is used in food, investing, financing, foreign exchange, election, and hospitals.

Commercial and non-commercial real estate businesses play a significant role in the world’s economy.

According to MSCI, the global real estate market increased $9.6 trillion in 2019 to $10.5 trillion in 2020. 

Here, What you will learn 

  • How a Blockchain-Based Read Estate business can change the world?
  • Why blockchain for real estate is important? Or what are the major issue we see in the offline real estate business?
  • What are the top benefits of blockchain technology for real estate businesses?

Recommended: What is Blockchain Technology & How Does It Works

Know About Blockchain for Real-Estate Business

Real estate businesses are operating offline and online mode in today’s world. In many countries, this market is now too volatile for investing and only high-class people can afford it. 

Nowadays lots of Blockchain-based real estate companies come out over the year. Now, these companies can disrupt the offline market. 

Nowadays blockchain can become a turning point in the real estate business.

Blockchain technology provides a facility for price negotiations and title transfers. The process of Blockchain-based real estate businesses is very fast and more secure than an offline process. 

Here you don’t need a middleman to view an apartment and fix a deal without paperwork. A smart contract is used in blockchain technology to securely sell or buy a property. 

In the blockchain, the smart contract is done between seller and buyer. Which is verified by the blockchain system.

Major issue We found in Real-Estate Business

  • Very high fees are charged by middlemen to buy and transfer property ownership safely.
  • Buying or selling a property is a very long process and time-consuming. It includes like find the right client, dealer, and lawyer, lots of paperwork, etc.
  • Finding the right client or dealer or lawyer. 
  • Lots of fraud cases we can see in the real-estate business.
  • High pricing commitment 
  • Lack of transparency

Grab a Free e-book to Master Blockchain Technology

Blockchain is a buzzword in today’s world. Every business adopts this technology for secure transactions which helps to reduce cost and time. 

From a business or entrepreneur’s point of view, you also need to master blockchain technology. 

And how you can use this technology to make money? 

Here I give you a free ebook to master this future technology. In this author use easy language to understand. And they add visual diagrams that help to understand easily and quickly.

What are the Key Benefits of Using Blockchain in Real Estate?

Benefits of Using Blockchain in Real Estate

As I have mentioned above that there are a lot of issues and challenges to be faced in the case of transfer ownership safely. So, blockchain technology helps to solve this problem.

#1 Help to Increase Transparency

Blockchain is a highly secured technology that provides full transparency of every transaction and transfer. Lots of fraud cases we see in the real estate sector. So, we need blockchain in the real estate business. 

We can track every transaction, and where the money is going with the help of this technology.  

Also, the main database will remain public, no one can remove or change any transaction once it is added to the blockchain.

#2  No Need of Middleman:-

One of the best benefits of blockchain in real estate is eliminating the middleman to successfully transfer property ownership. You need to spend lots of time and money. 

You need lots of middlemen like Brokers, lawyers, and banks to successfully conducting a deal. Broker charges with us to find the right client for our property. Lawyers charge for transferring your ownership legally. And banks take charges on loans and transfer money. 

According to the report of Deloitte, Blockchain in real estate keeps growing and will play a very important role in every transaction. 

Also, listings of any new property on the blockchain platform will go through a verification process. So, you can eliminate scams or fraudulent activities. 

The entire process from listing to sale will be completely digital.

#3 Liquidity:

Blockchain-based real estate industry help to increased liquidity. From a business point of view, you can create a platform where property owners or real estate companies can list their property. The process of selling a property takes time. But when we sell real estate on blockchain the process of selling takes minimum time. We use cryptocurrencies and tokens to buy a property. This platform helps in connecting the potential buyer with the seller to buy the property.

#4 Fractional Ownership:

Fractional investment is also the best use case of blockchain technology in real estate. Real estate companies can offer fractional investment options to the non-affordable individuals that help to own a portion of the property. It means multiple owners can own a portion of a property. 

It’s an excellent solution for middle-class people who can invest in a high-pricing property and share the ownership with others.

We can use smart contracts to conduct a successful transaction and save time. 

#5 Preventing Mortgage Fraud

Mortgage fraud is one of the major issues in the real estate industry. Basically, when the price and value of property increase the percentage of mortgage fraud also increases. Each year in USA, mortgage fraud causes a loss of $2.5 billion! you can imagine how big is this. 

But blockchain technology for real estate can help to prevent this type of fraud. All the transactions are done digitally,  transparent, and highly secure. No one can do changes in the system after adding a block in the chain. 

#6 Decentralization:

Decentralization is the biggest advantage of blockchain-based real estate businesses. In blockchain buyers and sellers can share information with each other to make a perfect deal. This information is transparent and immutable. 

Also, brokers can list their properties. When the property is sold, the commission is split between the brokers. 

#7 Costs:

As we know that the process of selling a property has time-consuming and needs lots of middlemen. Because of middle man you spend lots of money in paperwork and commission. 

But blockchain-based real estate businesses operate digitally and it cut down the cost drastically. Here, you do not need any middleman to sell a property. And with the help of smart contracts, everyone can securely sell or buy a property. 

So, blockchain in real estate helps to eliminate the cost of middlemen and the paperwork. 

Example of Blockchain-Based Real Estate Companies

Lantmäteriet

Swedish government’s real estate agency that uses blockchain technology. It is currently working on a variety of solutions that help to facilitate its land registration process.

JLL

JLL is also a blockchain-based real estate agency that they can use for making financial and construction batter.

 

Conclusion:

So, now you can understand that Blockchain technology will change the current Real Estate system. If you are in the real estate business this blog very important to you. You need to adopt the new technology.

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