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Real Estate Business Review | Thursday, July 28, 2022
The usage of blockchain technology in real estate will carry transparency to transactions and offer an open and shared database for all the parties involved, resulting in real-time recording and retrieval and improving data quality.
Fremont, CA: The blockchain technology initially used to authenticate cryptocurrency transactions is now being used in real estate dramatically, where transparency and verification are a top priority. Nowadays, blockchain is used to confirm personal identity, land registries, and voting ballots over the globe.
Companies are approaching innovative concepts and developing systems that use blockchain technology to accelerate the hectic property purchase process and save time for homebuyers. According to a survey, most real estate firms with more than 250 million dollars in assets are directly investing in one or more than one PropTech companies globally. Also, investors like Brookfield Properties, Oxford Properties, and brokers like CBRE and JLL are investing in PropTech firms.
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Altus's most recent CRE innovation report that examined 400 senior real estate executives around the globe reveals that 53% of investors with more than 250 million dollars in assets are directly investing in PropTech. And PropTech firms, which speciate in intelligent building systems and online lending marketplaces, are renowned for direct value investments.
Still, the study also showed that almost one in ten executives don't understand the concept of blockchain and its advantages but are still 38% are investing in this technology directly or indirectly, and 37% of executives are expecting the influence of blockchain on the real estate industry between the next two years.
Recently, Hong Kong ASTRI( Applied Science and Technology Research Institute) and New World Development, a property building firm, have united to launch a blockchain platform- PropTech- for homebuyers to substitute paperwork operations. It will allow users to send the purchaser's encrypted, authorized, and digitally signed agreement to a few selected banks, lowering the load and paperwork of approving mortgage applications, signing lease documents, and purchasing contracts.
The real estate firm's accounting, compliance, and cash flow management have digitized demands on the blockchain to deliver the highest level of transparency through smart contracts. In addition, using intelligent tenancy contracts on the blockchain platform clarifies contract terms & transactions. This empowers property managers and real estate owners to use the bond for real-time automated payments.
The usage of blockchain technology in real estate will carry transparency to transactions and offer an open and shared database for all the parties involved, resulting in real-time recording and retrieval and improving data quality.
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