Blockchain Use Cases In Real Estate & Its Application
Do you know the advantages of implementing blockchain in real estate? Or do you still think that traditional businesses won’t benefit from this technology?
In fact, over the past few years, the real estate sector has seen a rise in blockchain dApp development trends. This technology offers a wide range of improvements and advantages. The possibilities are endless, ranging from enhancing the security of buy-sell transactions to automating property management to implementing more intelligent decision-making.
Consequently, blockchain has the potential to modernize and innovate the commercial real estate market. This article explains how your real estate company can benefit from blockchain adoption before your rivals.
You can benefit from Suffescom broad real estate and blockchain experience. You will learn how your business can succeed by implementing this cutting-edge technology by reading more about our use cases, such as Real Estate Association and Recently.
Why You Should Care About Using Blockchain in Real Estate
It is better to look at some statistics if you are still trying to figure out the real impact of blockchain on the real estate industry over the next few years. You can then fully comprehend the technology’s capabilities.
Businesses from various industries spent about $6.6 billion in 2021 to integrate blockchain technology into their operations. In comparison to 2020, it is almost 50% more.
However, that is not when investments in blockchain start to decline. The IDC Worldwide Blockchain Spending Guide projects that, between 2020 and 2024, global spending on this innovation will increase by 48% on average yearly. It shows how quickly blockchain technology is being adopted around the world.
By the way, numerous industries are beginning to use this technology to enhance the efficiency of their offerings and reduce costs.
What Main Problems Blockchain Application Solves in Real Estate
Over the past few years, the commercial real estate sector’s growth has slowed. It encountered some issues that continue to be barriers to this market expansion.
At the same time, blockchain development aids in developing solutions to these problems. Let’s examine the real estate sector’s major issues and how blockchain applications can help solve them.
Lack of Transparency and Slow Operations
The complete lack of transparency between contractors, which encourages corruption, fraud, and money laundering and prevents industry growth, is one of the biggest issues in the real estate industry.
However, secure, shared databases are one of the main advantages of blockchain in real estate.
Realtors avoid stepping on each other’s toes by becoming familiar with the leasing, buying, and selling transaction records. Multiple listing services are a good illustration of why this new technology is so important because they gather property-level data from the private databases of brokers and agents.
The blockchain-enabled database can be used by numerous independent parties but only by those with the right to use it. As a result, only parties directly involved in managing real estates, such as owners, tenants, lenders, investors, operators, and other service providers, can always have quick and stable access to the information they need.
Thanks to it, participants in the real estate industry can use and share the same blockchain technology. They are no longer required to worry about data integrity.
As a result, blockchain enables the development of a platform for all parties that enables automated, tokenized, faster, and more secure communication and access to highly valuable real-time information.
Unsecure Titles or Data Management
Improper record-keeping, essential for quick business processes, is another issue in real estate.
All entities now have secure digital identities thanks to blockchain technology. It results in more open record-keeping for financing, liens, and property titles. With the help of blockchain, this technology now makes it possible to disintermediate title companies.
Slow and Unsafe Transactions
Many real estate deals have stipulations, take a while to complete, and must be transferred securely. As a result, the transaction can be carried out more effectively using blockchain.
For instance, title clearances or loan approvals might be necessary for a purchase-sale transaction. Real estate entities can use blockchain to verify whether those transactions have occurred and whether all requirements have been met.
Another issue is greater security and malware protection in real estate. Blockchain resolves that by offering a higher level of data encryption security.
For example, As we did for the Extobit cryptocurrency exchanger project, it enables encrypting all data transactions in the database to guard against any data breach.
Another illustration of why blockchain is worthwhile is a description of the Swedish tax agency that employs this technology as a remedy in real estate transactions.
Top 8 Blockchain Use Cases in the Real Estate Industry
We now understand that blockchain development addresses the real estate industry’s main problems and creates connectivity and security among real estate companies that were previously unthinkable.
But first, let’s examine in greater detail some actual blockchain applications in the real estate industry and the benefits they have for business:
1. The Real Estate Tokenization
For some real estate assets, tokens that can be issued, purchased, and sold using blockchain platforms and cryptocurrencies represent a specific number of shares. It expedites real estate transactions and lowers obstacles to crowdfunding.
It’s important to note that this system lowers the barrier for regular property investors. Commercial real estate investments made abroad are also easier to manage. In other words, properties can now be traded on exchanges like stocks.
Generally, the ability of blockchain to increase real estate liquidity can revolutionize the entire commercial property market.
Observe Imbrex is a blockchain startup for real estate that makes use of Ethereum. It allows sellers, buyers, and agents free access to a market of properties. By providing the data that keeps it running, they receive rewards.
For instance, using this platform, you can invest in any listed property abroad without coming here in person.
Ordinary investors may soon be able to stake a claim to assets they wouldn’t be able to buy using current means, thanks to commercial real estate technology companies.
2. Smart Contracts
are among the most successful blockchain innovations, which have enormous advantages for the banking and finance industries. The real estate sector, which must manage many transactions, could also gradually benefit from this technology.
With this kind of technology, a real estate transaction between the buyer and seller can now be completed digitally instead of the nearly endless paperwork it once required. There is more security and transparency in that transaction than was previously possible.
Virtually no human interaction is necessary during automated transactions. Everything created on the blockchain is self-executing once it is put into use. The principals involved expend less time and effort, and there is less expense and no possibility of fraud.
An example of ChromaWay, a blockchain real estate business using this technology, collaborated with Telia, a major Swedish telecommunications company. They want to digitize mortgages and sales contracts without any restrictions. Blockchain security measures can unequivocally authenticate these documents once the technology is in place.
Regardless of prior knowledge, anyone can create a smart contract thanks to blockchain technology. It is now possible to electronically sign the agreements that obligate both parties to abide by the terms of the contract, greatly streamlining what was previously a cumbersome and time-consuming process.
3. Security and Control Over Transactions
Another benefit of blockchain use cases in real estate is reducing the risk of fraud. Either you are trying to buy property from someone else, or they are trying to buy it from you. Because you don’t know them, you have no reason to believe them completely.
With blockchain technology, you need not. Because blockchain eliminates any possibility of fraud, property transactions are no longer required to go through third parties.
Until now, the real estate industry had to involve extensive documentation and several intermediaries. This has resulted in slow, pricey, and opaque financing and payment methods for real estate transactions.
One of the first things that come to mind when considering how to use blockchain in real estate is how you can use it to improve the security of real estate transactions and streamline payments. In both rental and purchase scenarios, blockchain can be used to demonstrate that the parties involved have the necessary funds to complete the transaction.
Global blockchain technology integration will soon make financial and payment systems secure and open. They will be saved so that each party can access them whenever needed.
4. Property Management Automation
Blockchain technology will replace multiple software applications and manual paperwork in the real estate industry. For improvement and improvement, blockchain technology will return all of that.
The entire property management process will be efficient thanks to a single decentralized application with smart contracts supported by blockchain technology. Less time and money will be spent on administrative tasks as a result.
5. Transparent Data Tracking and Analysis
Blockchain uses a ledger technology that is permanent for the network’s life. As a result, all information regarding the property or the history of the building is documented, accessible, and transparent to all potential buyers and investors. All parties involved in real estate investing can benefit from blockchain technology.
Furthermore, combining big data and blockchain technology offers a better chance for more precise tracking of customer and owner histories across borders and banks. It reduces the likelihood of default. Real estate big data players now have better tools for information analysis and data-driven decision-making.
6. Shared Ownership and Investment
Real estate is transformed by blockchain technology, which makes fractional ownership and investment possible. Real estate purchases require a sizable financial commitment, especially in light of the ongoing increase in property values. Investors can pool their funds and buy a share of a property through the blockchain that they could not buy separately.
Shared ownership also allows investors to sell their ownership interest whenever they want. Additionally, it enables them to avoid the self-management of real estate, including its frequent labor-intensive maintenance and leasing.
7. Access to Secondary Market Opportunities
By granting access to the secondary market, tokenizing real estate assets creates opportunities. It is made possible by replicating any help digitally, bringing down the cost of transactions, and opening them up to a global audience.
Real estate businesses can use blockchain to convert illiquid assets into liquid ones and draw in more investors. Anyone can purchase a digital asset or a share of it and later sell it on the secondary market.
8. Global Asset Distribution
When viewed globally, most of the points we made above—such as real estate tokenization, increased liquidity, smart contracts, and improved transaction transparency—become even more important. Projects on the blockchain have no boundaries.
With the aid of tools that buyers and sellers can use anywhere in the world, a universal system for buying and selling real estate is now possible. Smart contracts allow you to automate all sales transactions and instantly verify their validity.
All transactions on the blockchain are processed almost instantly, regardless of the time of day or whether it is the weekend. Therefore, blockchain technology offers a global system for selling real estate and lessens the restrictions brought on by geographic factors.
Existing Challenges to Blockchain in Real Estate
The biggest obstacles to using blockchain for real estate are technical and legal.
Before this technology is thoroughly investigated and developed, blockchain real estate projects must stay on the ground. Since there need to be more experts in blockchain development, the market is still having issues.
Still, not all states and legal frameworks have adopted blockchain. Even though several real estate apps already use blockchain technology, some users are still wary of it because it has yet to receive legal approval. Expect the blockchain to become a true industry standard once it is more widely accepted and understood.
Real estate will likely take 10 to 15 years to adopt blockchain technology. But it’s coming, and once things start to come together more quickly, the industry will undergo a complete transformation that will be advantageous to all parties involved.
Additionally, there are still a lot of undiscovered possibilities for using blockchain in conjunction with AI, ML, big data, and IoT technologies to create solutions to various issues facing the real estate sector today.
Currently, blockchain real estate transactions might seem a little strange. However, they have a wide range of useful applications in security, data access convenience, and the various other previously mentioned areas. As a result, in the upcoming years, expect this technology to permanently alter the real estate market or other sectors of the economy.
Suffescom Experience in Using Blockchain for Real Estate
we have a wealth of real estate and blockchain expertise. IoT, AI, video conferencing tools, AR, and VR, are also used to improve our software. With blockchain technology, all of these innovations can help your product dominate its market.
Let’s look at a few of our real estate industry cases.
Real Estate Association
We created a mobile application called Real Estate Association for the French Real Estate Association. It is a good tool for buying and selling real estate because it offers the most recent market data.
The Association asked us to address a pressing issue: real-time property information display requirement.
The product’s key features were identified through market analysis, and we incorporated them into our design and code. We made sure that the property information was gathered in one place and displayed in real-time by our mobile solution.
As a result, over 3,900 real estate agencies currently use our application. MobileWebAwards recognized our product as the top mobile real estate app.
She has recently been a web and mobile platform for real estate IoT. With this digital product, showing properties has never been more effective.
Our team’s task was to increase platform usability and apply IoT to real estate demonstrations.
The solution: Our team examined the platform to find usability problems and develop a plan to fix them. We created new user streams. As a result, we were completely redesigning the platform’s visual elements. We have also ensured a smooth process for showcasing IoT properties.
As a result, our platform has become very well-liked in the largest US cities.
Every year, blockchain in real estate will become more and more important. You should put our advice into practice right away. Here, we can assist you in developing a blockchain-based real estate solution.
We have substantial experience developing real estate software and apps of various kinds and degrees of complexity. We can assist you in choosing the best set of functionalities, progressive stack technologies, and user-friendly design that fulfills all requirements for your solution by combining it with our experience in custom blockchain development.