Driven by the growth of infrastructure, increasing working-age population, government initiatives, and various other factors, the real estate industry is growing exponentially. To meet this demand, real estate developers continuously offer innovative housing and commercial spaces that people can buy/sell/book through mobile apps or websites.
Since real estate transactions involve large transactions; therefore, real estate developers must ensure their mobile apps and websites use top-notch security measures. One technology that has revolutionized the real estate industry by providing end-to-end security and complete data privacy is Blockchain.
Blockchain technology simplifies the handling of transactions, maintaining property records, and streamlining the real estate processes. It offers tremendous potential to bring higher efficiency, trust, and accountability to real estate transactions.
However, these are not the only ways Blockchain revolutionizes the real estate sector. The blog covers a few more, but before we discuss them, let’s understand why there is a need to implement this technology in the real estate industry.
The Need For Implementing Blockchain in the Real Estate Industry
The real estate industry is continuously evolving, and its market trends are rapidly changing. Both these factors bring unpredicted changes and challenges that can become an obstacle to the success of any business. The implementation of blockchain technology in this industry helps to overcome all common challenges, including the following:
1. Higher Risk of Fraud
Since the real estate market involves large transactions, it is vulnerable to fraud, cyber-attacks, and data breaches. Any data leakage or insecure payment gateway can result in the loss of millions. Implementing blockchain helps to verify the ownership histories and other crucial information to check if the transactions are legit.
2. Multiple Stakeholders Involvement
Real estate involves multiple intermediaries, including developers, brokers, and buyers. Traditional approaches don’t provide means to ensure data privacy and security. Blockchain’s decentralized ledger verifies that all stakeholders can access immutable and transparent records.
3. Global Accessibility
With blockchain, real estate developers can also ensure seamless cross-border transactions. They don’t need to bear the hassle of currency conversions. Making properties or spaces open to international investors or buyers is profitable for developers.
4. Slow Operations
Most property transactions involve conditional clauses, which require time to proceed. Going through those clauses manually and meeting the conditions may slow down buying and selling properties.
5 Ways Blockchain Technology is Transforming the Real Estate Sector
The growing use of Blockchain in the real estate market makes it evident that it is transforming the industry exponentially. According to Fortune Business Insights, the global blockchain technology market size is expected to grow from USD 17.57 billion in 2023 to USD 469.49 billion by 2030. The market will grow at a CAGR of 59.9% during this period.
Now, let’s check the five ways blockchain technology is revolutionizing property management, transactions, and other aspects of real estate.
#1. Financial Evaluation and Due Diligence
A thorough evaluation is mandatory before renting or purchasing any residential or commercial space. It involves different intermediaries to verify various documents to avoid any legal issues in the future. Manually performing this task consumes a lot of time and increases the chances of corrupting/modifying the documents.
Adopting blockchain-based real estate solutions, developed by a reliable blockchain development solutions provider, can resolve this problem as it allows businesses to store property-related documents digitally. Stakeholders can access these documents, but no one can change/alter them. It makes due diligence easier, more accurate, and quicker.
#2. Seamless Property Management
Property management is a complex process due to the involvement of multiple stakeholders. Implementing blockchain streamlines this process by allowing developers to create smart contracts that enable the automated execution of agreements if the landlord and tenant or property owner and seller fulfill the predefined conditions. It saves time and also eliminates the requirement for stakeholders’ involvement.
#3. Titles Management
Blockchain enables developers to store, record, and manage property titles securely. It minimizes the risk of title disputes and makes the “property title” transfer process efficient and transparent. As per the American Land Title Association’s report, approximately 25% of the property titles were discovered corrupted or altered during the transfer process.
#4. Real Estate Assets Tokenization
Blockchain enables real estate assets tokenization to convert them into digital assets. It amplifies investment opportunities. Tokenization is a process where a property owner can convert their assets into digital tokens and give them to those having a share in the property. The shareholders can track their investments without getting them immuted as the tokens have time stamps. It also reduces the risks of fraud and breaches.
#5. End-to-End Security
Blockchain has several cryptographic protocols that enhance the security of data captured, stored, and transmitted on blockchain-enabled solutions. By ensuring end-to-end security of real estate data, the technology assures developers, investors, and other parties that they don’t have to worry about cyber threats and unauthorized access to their property records.
3 Real Estate Companies Using Blockchain Technology
Many giant real estate developers or companies are leveraging blockchain technology to improve processes and secure real-estate transactions. Below are three popular ones:
1. Propy
It is a San Francisco-based company that facilitates buyers, sellers, and other stakeholders to do real estate deals without physical meetings. The platform leverages blockchain technology to ensure secure transactions by making the most of smart contracts.
2. RealtyBits
It is another US-based platform that allows developers to raise capital or funds from verified investors in a secure way. It uses blockchain technology to ensure the entire process of raising funds is secured and verified.
3. ShelterZoom
The New York-based firm is a reputed provider of Smart Document Solutions known as document tokenization. The platform utilizes blockchain to provide users with complete data ownership, cybersecurity, and interoperability.
How to Implement Blockchain in a Real Estate?
To implement this advanced technology into a mobile app or solution, you can connect with a custom mobile app development services provider with experience in blockchain and other relevant technologies such as artificial intelligence and machine learning. Before you connect with such a company, define your custom business requirements and the goals you want to achieve with the app.
You can also note the pain points the blockchain-based app or solution will resolve. It will help the company understand your unique needs and provide a solution accordingly. Apart from contacting a mobile app development company, you can hire blockchain app developers with relevant expertise and experience. No matter which option you choose, ensure they have a systematic approach to blockchain app development.
Final Words
Blockchain technology renders immense benefits to the real estate world. From securing your transactions to allowing you virtually buy, sell, and manage properties/spaces, you can perform all property-related tasks seamlessly and effortlessly. Many big real estate firms are leveraging this technology to outdo their competitors and provide a secure and seamless experience to customers.
If you want to develop a blockchain-based solution or app for your real estate business, reach out to a real estate app development company with a track record of developing blockchain apps or software.
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Quy Technology Category: Mobile App Developers Profile: Quytech is an award-winning Mobile Apps / Augmented Reality / Virtual Reality / Artificial Intelligence, Blockchain and Game Development Company having an extensive experience of consulting developing various Immersive & Mobility solutions which are being used by the number of customers globally across the industry. We are working with various industries including eCommerce, healthcare, Training & Development, Retail, Real-estate, Entertainment, Education, Manufacturing, FMCG and many m ...
