In a recent study, it was revealed by International Real Estate Adviser, that the Global Real Estate Market was valued at $217 trillion.
To put things into perspective, here is a comparison of some other sectors:
- Gold – $8 Trillion
- Cryptocurrency – $150 Billion
- Stock Market – $67 Trillion
We are now all familiar with the Blockchain technology by now. Blockchain technology has significant potential to drive transparency, cost savings and efficiency. This technology is being used in the business, health, logistics and financial sector. However, more recently the Real Estate industry is beginning to explore with the technology.
Normally, Real Estate interactions and dealings take weeks to months to conduct in person, with more than one party involved. This is usually the norm in methodology when dealing with exchange of assets of high value. Blockchain technology now wants to change this process by digitalizing the financial exchange across the industry. It was only a matter of time that the Blockchain technology was going to leave its mark on this industry as well.
Thanks to Blockchain technology, investors and owners don’t need to be present to broker or obtain a sale. It will all be done digitally, with transparency and high security.
So how will Blockchain Technology change things in the Real Estate industry?
- Smart Contracts- Smart contracts are now becoming admissible records in the American Court system, raising their overall credibility and familiarity. The process used to be complex and quite lengthy, but now with Blockchain it becomes a secure, efficient and transparent transaction. You can complete this transaction from anywhere in the world with the simple use of your computer or handheld device.
- No more Intermediary- Another benefit of implementing Smart Contracts is that it cuts out the middlemen, such as agents, attorneys and banks. By eliminating these liaisons reduces costs, because it eliminates commissions, service fees from the equation of a deal. Therefore, registration, taxes and inspection fees become entirely neutralized during the procedure. In addition, buyers and investors can participate in real estate auctions on their own with this technology. Blockchain Technology and Smart Contracts are able to take on the processing of payments, listings, legal documents, simplifying and expediting the entire process.
- Affordability- You don’t have to be a millionaire to own equity in a new construction project, whether it’s a commercial, residential or an existing property. Any amount can be invested, without a minimum entry threshold requirement, and simple attain ownership. This technology allows entry to almost everyone with different financial background to participate in deals. New technologies such as Blockchain will allow a large group of investors to combine their assets to purchase any size of property, saving time and money for the seller and bringing new investment opportunities to the buyers.
Blockchain Technology will provide the opportunity to assets such as real estate and land to be quantified as cryptocurrency and traded, bought and sold with convenience, security and transparency. Purchasing businesses, commercial and residential properties will become less tedious and affordable for everyone in the comfort of their own home, office or holiday.