Real estate companies worldwide struggle with creating visibility beyond the locale where they operate. This problem occurs due to multiple roadblocks–the lack of streamlining of rental collections and payments to property owners, unreliable data-sharing processes, and overall operational inefficiency.
But the few companies–PropertyClub and The LendingCoin, etc.–that are utilizing blockchain as a crucial part of their business model are reaping very real benefits of time and cost savings. Besides, the substantially richer data endowed by the power of blockchain has also facilitated better decision-making.
As apparent, the impact of blockchain in real estate is disruptive. And a GlobalData report says that the blockchain market size is expected to grow at a CAGR of 62.4% during 2022-2030. So, future predictions are also favorable.
Thus, if you’re looking to create a blockchain app, now is the time to take the plunge. Having said that, here’s how building apps on blockchain is setting a new stage in the real estate app development niche:
There is tokenization of real estate using blockchain technology. Tokens represent a specific number of shares for some real estate assets that can be issued, bought, and sold through blockchain platforms via cryptocurrency. It lowers crowdfunding barriers and speeds up property sales.
There is less friction for ordinary property investors and overseas investment in commercial real estate also becomes more manageable. In other words, properties can be traded like a stock on exchanges.
Besides, building apps on blockchain has significantly helped increase real estate liquidity. This is a revolution in the commercial property market.
Also, tokenizing real estate assets creates opportunities by granting access to the secondary market. It is made possible by digitally reproducing any asset, lowering the cost of transactions, and making them accessible worldwide.
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Businesses are building apps on blockchain as they recognize the security and transparency it brings to financial and payment systems. As all payments are stored on the blockchain, either party can return and reference them whenever they wish.
This is another feature that is leading to the growing adoption of blockchain in real estate.
Besides, blockchain eliminates the possibility of anything underhanded as property transactions don’t involve any third parties. So, there’s also a reduced risk of fraud.
To date, the real estate industry was marred with extensive documentation and the involvement of various intermediaries. This led to the coming up of slow, opaque, and thus, expensive modes of financing and payments for property transactions.
But with the entry of blockchain in real estate, there was immutable proof that parties have the funds needed for the transaction in rental and purchase scenarios. So now, there was no need to involve any third party or for the stakeholders to immerse themselves in a deluge of paperwork.
It wouldn’t be wrong to say that smart contracts are among the most profitable blockchain innovations.
Through smart contracts, a property transaction that once involved endless paperwork can now take place digitally between the buyer and seller. Further, all transactions are automated and hardly require any human interaction.
And as numerous transactions are carried out in the real estate industry, companies that are building apps on blockchain are incrementally increasing their bottom line.
By building apps on blockchain, you eliminate manual paperwork and the need to use software programs.
So when you hire a blockchain app development company to build your real estate app, essentially, you automate the whole property management process and make it more efficient. This leads to reduced costs and time spent on administrative tasks.
Given the steady rise in property prices, buying real estate needs significant investment. And through blockchain, investors can pool their resources and buy their share of a property they could not purchase independently.
As blockchain in real estate enables fractional ownership and investment, it is turning the heads of all real estate company owners.
Blockchain helps make real estate investing fairer for all parties involved. It applies ledger technology that lasts as long as the network is running.
Because of this, all data on the property or the history of the building is recorded, readily available, and transparent to all future owners and investors.
When you build your own blockchain app for real estate, this reliability helps you build trust among all stakeholders.
The use of blockchain in real estate knows no bounds. This technology makes it possible to create a universal system of buying and selling property with tools understandable to customers and sellers worldwide.
Smart contracts enable you to automate all sales transactions and confirm their validity in real time. And regardless of business hours, all transactions on the blockchain are processed almost instantly.
This, in itself, is a feat that not many new technological innovations have been able to accomplish.
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Blockchain technology brings all kinds of innovations and benefits. Using blockchain in real estate allows you to turn illiquid assets into liquid ones and attract more investors.
As such, anyone can buy an asset in digital form or a share of it and then sell it on the secondary market. But that’s not all. The range is vast, from improving the safety of purchase or sale transactions and automating property management to implementing more intelligent decision-making.
We at Code Brew Labs are always building apps on blockchain, no matter what your niche is. Partner with us to make your real estate business profitable from blockchain adoption before your competitors get the lead.March 31, 2023