Topic: How blockchain can be implemented in the real estate market. (Read 131 times)

The global real estate market has been long overdue for a huge blockchain disruption.

A future-proof, blockchain real estate market could help create a new business models of connecting potential buyers and sellers.

How Can Blockchain Technology Improve Real Estate

It is also important to note how blockchain uses could potentially revolutionize rental property payments. Cost-efficiency and better decision-making in leasing
transactions can be achieved with a shared database, where a whole vertical of stakeholders including owners, tenants and service providers can interact with
ownership information, or transaction history in an open, secure way.

Combined with new models of flat ownership that could potentially span the global market, decentralized payment projects could be used to facilitate low-cost,
high-speed transnational micropayments which would distribute the payment among all stakeholders concerned. Within the context of payments, introduction of smart
contracts into blockchain real estate ledgers and transactions, has clear potential in streamlining various real estate processes, such as releasing apartment
ownership, or rental documents upon a completion of a cryptocurrency transfer. The benefits of this aspect of blockchain use cases when applied to real estate are
already being recognized by a variety of private institutions and governmental bodies.

For example,

A blockchain firm Fluidity is currently in a partnership with a broker-dealer Propellr.

Propellr states that

“When we started to look at the real estate industry, it’s probably one of the most inefficient industries that exists currently. A lot of middlemen, a lot of
lawyers, a lot of bankers.”

The idea behind the partnership is to allow investors to buy shares in a $36.5 million block of condors. The alternative was to sell each of the 12 luxury apartments
individually, But now the same can be tokenised shares and sold to those who wish to add the Manhattan real estate opportunity to their portfolio. These tokens
will be issued on a blockchain and should therefore allow for higher transparency, security, and efficiency which was thought not possible before.
By tokenising the sale of the property, they will be able to start repaying the loan that allowed for its construction earlier.

“We have a bank deadline on us where we have to sell a certain amount of units or repay the entire loan by a certain date. If construction has been delayed, if the
market turns, if competition pops up, and we’re not gonna be able to hit that deadline, what do you do? So, by tokenising the debt it gives everyone breathing room
to sell at a normal pace with the market instead of against it.”

“Literally 25-30 million people can own a piece of this at a dollar a pop. When has that ever been possible?”