Blockchain app development has the potential to transform the way real estate is managed, owned, and transacted across the globe. It is clear that it’ll take some time to achieve its fullest potential. But the technology is already influencing a range of industries.
The power of Blockchain technology is in the automatic processing of transactions using Blockchain app development. It also has the potential to establish fractional ownership in real estate properties using tokens traded through a Blockchain exchange. This opens possibilities for investment in the real estate market.
In this article, we’ll discuss the in-depth concept of the possible uses & future of Blockchain technology within real estate.
Blockchain Technology: Changing the Future of Real Estate
There has been a rise in Blockchain in real estate. Real estate isn’t immune to the disruption of Blockchains as well. In the past, transacting with high-value property such as real estate solely via digital channels hasn’t been the usual. Transactions in real estate are typically done offline and involve face-to-face interactions with different entities. Blockchain, however, has provided a way to alter this.
Real estate transactions are different this way. The following are some of the ways by which Blockchain mobile app development has transformed the real estate market.
1. Fractional Ownership
The greater liquidity of Blockchain opens new investment opportunities which were previously unattainable due to limitations in the real world. Instead of selling their home, sellers can transform their property into “tokens” by using Blockchain development. After that, they can trade fractional stakes.
Instead of taking out a reverse loan, people who require cash may sell a portion of their house to family members. Commercially, prospective investors could purchase parts in every property across the world with no minimum cash requirements. Some predictions suggest that this may be extended to rental properties in which tenants purchase shares in apartments. They pay the remainder of the rent when they can afford the share.
But Blockchain alone isn’t able to make these scenarios possible. We’d need to alter the legal frameworks that govern the ownership of homes to permit the purchase of equity. When that change is implemented, it could result in an entirely new approach to ownership & investing.
2. No Middlemen
Lawyers, brokers, and banks have always been a part of the property system. However, Blockchain technology could bring about a change in their roles and involvement in real estate deals. The new platforms could eventually take on roles such as listings or payments & legal documents. The elimination of intermediaries will result in buyers & sellers gaining more value from their funds. They can reduce the commissions and fees paid by these intermediaries.
3. Reduced Costs
Most importantly, Blockchain web app development is able to dramatically cut the costs associated with doing business. Blockchain’s completely transparent, incorruptible ledger removes the necessity of third parties. The buyers and sellers will have no need for a trustworthy agent to transfer their assets. The streamlined process may eventually replace certain administrative and legal duties. Thereby, it will reduce costs, speed the buying process & allow for greater direct sales.
Real estate has been considered to be an illiquid asset since it takes a long time for sales to close. However, this isn’t the case for cryptocurrency and tokens. They could, theoretically, be traded in exchange to fiat currencies. But, since tokens are real estate, they can be quickly traded. The seller does not have to wait for buyers to afford the entire property to gain some property value.
Blockchain app development platforms give real estate professionals unprecedented access to the financial background of a property’s buyer or seller. Any authorized user of the Blockchain database is able to access every single block of data. Thus, everyone involved would have the same access to pertinent information about properties and the others.
The most efficient use of Blockchain’s secure ledger is dramatically reducing the possibility of fraud. Shady sellers can no longer deceive potential buyers regarding the sale or repair history for a home.
Blockchain technology is still in its development. However, in the next few years, it will make buying real estate as easy as selling stocks. Real estate agents and investors must keep an eye on Blockchain app development. Blockchain development will help them gain an edge over others.