The real estate market is being highly impacted by Blockchain technology and digital (aka Crypto) currencies that together, could completely disrupt the real estate industry. Both technologies, Blockchain & digital currencies have forced some form of disruption of other industries, markets and regions, and now their eyes are aimed squarely at the property industry. Real estate has been an early leader in technological vicissitudes, however, of recent years, it has been rather dormant. Now, the industry cannot halt the pull of cryptocurrency and Blockchain.
Dmitry Faller, CEO of Primalbase said that real estate is generally a ‘conservative and traditional industry’, ready for disruption and Blockchain needs real use-cases that are not just based on conjecture.
There have been several instances of smaller transactions using Bitcoin such as an investor from Miami was looking to trade his $6.5 million mansion in exchange for Bitcoins and a property company in London still remains willing to accept Bitcoin payments, even accepting rental payments via Bitcoin before the end of 2017. However, something as big as $330 million was never seen earlier.
This movement, illustrates conventional real estate professionals have faith in the potential of the technology.
CEO of ATLANT, Julian Svirsky said that they anticipate unparalleled prospects for disruption in real estate and housing markets that will let investors, lodgers and property holders to take advantage in many different ways, offering cost-savings and expediency, compared to the present inefficient and expensive options.
A serviced apartment provider in Switzerland by the name of Vision Apartments is already accepting Bitcoin for rent. They say that experimenting with numerous Blockchains like Ethereum specially, has opened various opportunities on the provision of providing their customers with services that are fresh and different.
A member of the LA Token Advisory Board, David Brake said that the secondary and primary markets of fractional ownership (where different parties not necessarily related to each other can share in the ownership of an asset which is quite expensive) of mortgages and home equity are now on the brink of a leap ahead because of smart contracts made possible because of cryptocurrency & Blockchain.
In a report of a Blockchain Pilot Program, the Cook County Recorder of Deeds of Chicago successfully tested the transfer of real estate ownership on the Blockchain platform and the way it would be carried out in the public records. The test met all the “legal and procedural requirements.” It read, even though Blockchain can make transactions in real estate easy, safe and precise there are some challenges which are delaying its adoption.
Lantmäteriet which is the land registry authority for Sweden has been recording land and property on a private Blockchain since 2016. It is an initiative which has been implemented so that the taxpayers can save more than $120 million (€100 million). The Brazilian government is also using the Bitcoin Blockchain to solve problems of proprietorship disputes.
The ability of Blockchain to transform the face of real estate industry remains in its ability to hasten closing procedures, increase transparency and lower the costs incurred at different places in a single transaction cycle.
Founder of IBREA (International Blockchain Real Estate Association), Ragnar Lifthrasir says, just like all developing technologies, even Blockchain will reach mainstream adoption when industrialists create a safe and simple to use application which resolves a problem. Those within the real estate industry that adopt Blockchain sooner will receive the most benefits and will see themselves as leaders for the next revolution in the industry of real estate.
Propify, who we have reported on previously, is an innovative real estate marketing agency. They have developed what they call the first social media for real estate on Blockchain technology. If they can get the technology off the ground, it should see the start of the real estate disruption across the globe.