How Blockchain is Disrupting the Real Estate Industry?

1. How Blockchain is Disrupting Real Estate A leading blockchain app development company

2. Introduction • Real estate is one of those industries that have lately discovered the amount of positive transformation Blockchain technology brings into the industry. • Real estate constitutes a significant amount of the world’s economic assets. One such report by MSCI indicates the rise of the real estate investment market from $7.4 trillion in 2016 to $8.5 trillion in 2017. • Is Blockchain right for the real estate business? Continue reading to discover the answer.

3. Challenges in the Real Estate Industry Challenge 1: Limited accessibility • Real estate is majorly a choice of the rich. There are various barriers such as citizenship, accreditation, and fund managers that make entering the real estate market very difficult. Challenge 2: Lack of transparency • According to a study by the United Nations, nearly USD 2 trillion are laundered in the real estate market each year. This is majorly due to the lack of transparency in the entire system. Challenge 3: High capital investments • If you’re planning to invest in the real estate market, then there is a variable fee that you have to pay such as exchange fees, transfer fees, broker fees, and attorney fees, and so on. This requires high investments in the real estate market.

4. Challenges in the Real Estate Industry Challenge 4: Lack of liquidity • Liquidity defines how quickly an asset can be converted into cash. Due to factors such as barriers in the entry, the involvement of third parties, and lengthy transactions, the Real estate industry lacks liquidity. Challenge 5: Slower transactions • Due to the intervention of third parties and higher capital investments, the real estate transaction can be very slow.

5. How Blockchain is coming to Real estate’s rescue? Blockchain is a time-stamped series of immutable record that is managed by a cluster of computers that is not owned by a single entity. 1. Smart contracts • With Smart contracts, Blockchain enables the leases to be signed and payments to be done on the chain. • This removes any need for third parties and automates the rental and dividend payments to the property owners. 2. Tokenization • Tokenization refers to the digitization of securities, alternative assets, and financial instruments. Tokenization reduces costs and makes the transaction faster. • This also increases the connectivity between digital assets and associated networks. These merits show the benefit of Blockchain technology due to its new instruments and markets.

6. How Blockchain is coming to Real estate’s rescue? 3. Property Management • Large property management firms present an inefficient oversight of their global portfolios. • Blockchain facilitates the secure sharing of data, streamlines rental collections and payments to the property owners, which increases operational efficiency. 4. Impact on land and property registries • Land titles lie majorly on paper documentation, which makes it vulnerable to loss, fraud, and mismanagement. • Blockchain replaces outdated paper deeds that deal with digital assets and tracks the changes on a ledger that is the common source of truth between all the stakeholders.

7. Final Words • Hence, Blockchain technologywould help in the democratization of the real estate properties and will also open the gates for potential investors across the world. • If the application of Blockchain is done properly, we could witness revolutionary changes in the operations of the real estate.

8. Why Debut Infotech? The application of Blockchain in the real estate industry can be a lengthy and tiresome process. Ease your path to the Blockchain development with Debut Infotech’s astute team of Blockchain experts. You can visit our website or request a free proposal.

9. Thanks You For more info contact us via Mail: info@debutinfotech.com Call: 1-703-537-5009