5 Reasons Why Real Estate Will Undergo a Massive Transformation in the Upcoming Years

  • Platforms and Marketplaces: Blockchain offers a novel way to trade real estate on actual trading platforms and online marketplaces. Property owners can tokenise their real estate assets, which can then be traded like stocks on an exchange through online transactions — in a transparent way. Similarly, real estate funds can do the same and hence open up these investment opportunities currently reserved for the wealthier people to a much wider audience.No Intermediaries: The participation of brokers, lawyers, and banks in real estate transactions may soon be a thing of the past (Deloitte, 2017). Platforms using blockchain technology will soon be able to take over functions like listings, payments, and legal documentation, hence cutting out the intermediaries between buyers and sellers. This not only results in time and cost savings but also substantially decreases fraudulent and generally criminal activity. This is one of the major added values blockchain offers within these contexts.
  • Liquidity: At the moment, real estate is considered quite an illiquid asset because it takes time and resources to close a sale or development cycle. However, fungible and non-fungible tokens (NFTs) can be traded for other cryptocurrencies (including stablecoins) or fiat (if preferred) at all times.
  • Fractional Ownership: Another hugely important aspect to consider is fractional ownership. Blockchain significantly reduces entry barriers to real estate investing because it allows for fractional ownership. As briefly mentioned above, smaller retail investors can easily pool their money to invest in a property, instead of having to wait decades before finally having saved up enough money to participate in the market. Through blockchain, they can easily buy and sell fractions of tokens, which will make investing in real estate more accessible to people.
  • Decentralisation: Blockchain is decentralised and secure, meaning that all information is stored on the blockchain and can be accessed by all network users. Data is therefore fully transparent, immutable and verifiable. Buyers and sellers don’t need to trust a third party (that potentially engages in fraudulent activity itself), as all information is available to them.

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We’re a software venture removing inefficiencies & increasing transparency in real estate transactions & property management.