7 Blockchain Use Cases in the Real Estate Industry in 2024

Real estate is one of the largest asset classes in the world. And in 2024, commercial enterprises and real estate professionals have started to realize the transformative impact that blockchain technology can have in their industry. This impact will be in terms of optimizing retail and commercial property sales, streamlining payments, better investment opportunities, and increasing access to real estate funds.

Blockchain has been successful in transforming the commercial real estate market in some places into a more innovative and advanced market. In this article, we’ll dive deeper into some of the most prominent blockchain uses-cases in the real estate industry in 2024. But before we do that, let’s take a look at some of the most common problems that blockchain can solve in real estate.

What Significant Problems Can Blockchain Application Solve in Real Estate?

In the last few years, the commercial real estate industry has seen a drop. This drop has mainly been attributed to some problems that continue to stay as objections in the current development of the market.

A good solution to those problems is blockchain development. So, let’s look at these real estate industry problems and how the application of blockchain can solve those problems.

1. Lack of Transparency and Slow Operations

One of the biggest factors that prevent industry growth is the total lack of transparency between the contractors. This further causes corruption, fraud, and money laundering. This is where blockchain can come in the real estate industry in the form of secure databases.

A secure database will make sure that information related to leasing, purchasing, and sale transaction records become common knowledge. This will ensure that the realtors don’t end up stepping on each other’s toes. There are several listing services that collate property-level information from the private databases of brokers and agents. This is a prime example of why this technology is so critical.

2. Unsecure Titles and Data Management

Another issue in the real estate industry is improper record-keeping. This is a critical process for having a fast business process. With the help of blockchain, all entities will get digital identities that cannot be mistaken or appropriated.

This will lead to more transparent recordkeeping with things like liens, property titles, and financing. This technology will allow making titles companies disintermediated through blockchain.

3. Slow and Unsafe Transactions

Most real estate transactions come with conditional clauses, need a long time to process, and have to be transferred safely. These features can be served with blockchain and all of this can be executed efficiently.

With the help of blockchain, real estate entities can also check if transactions have been enacted and if their conditions have been met. Blockchain will also provide a higher security standard of data encryption to the industry.

7 Blockchain Use Cases in the Real Estate Industry

Now let’s look at some blockchain use cases in real estate industry and what business results those use cases can bring.

1) The Real Estate Tokenization for Reducing Crowdfunding Barriers and Increasing Real Estate Liquidity

Tokens present a particular number of shares for some real estate assets. These tokens can be issued, bought, and sold through different blockchain platforms with cryptocurrency. This will make for a faster property sales process.

It is also worth mentioning here that through this system, the barrier is reduced for all ordinary property investors. It further makes it easier to manage an overseas investment. In simple words, this will allow properties to now be traded like a stock on exchanges.

Further, blockchain can revolutionize the entire commercial property market. This is due to the ability of blockchain technology to increase real estate liquidity. For example, Imbrex is a blockchain startup in real estate that is currently using the Ethereum blockchain.

Through Imbrex, sellers, buyers, and agents can have free access to an extensive and rotating market of properties. One can also earn rewards by contributing to the data that keeps the whole thing running.

2) Smart Contracts for the Digitization of Contracts and Reduced Fees

Smart contracts in blockchain are very useful for the finance and banking industries. The same benefits can also be applied to the real estate industry as it also needs to proceed with a lot of transactions.

With the help of this sort of technology, a property transaction that once involved endless amounts of paperwork can all happen digitally between the buyer and the seller. There will be a higher level of transparency and security of transactions than ever before.

The transactions will be all automated and will require hardly any human involvement. Also, anything that is based on the blockchain becomes self-executed once it is set in motion. There is also less time and effort by the principals involved. There are also reduced costs and no chances of fraud.

The application of this technology will also work by increasing the trust of all the parties that are involved. This will also reduce the need for legal counsel, which can be very costly. A good example of a realty company that uses this technology is Chomaway, which has partnered with Telia, which is a Swedish telecommunications giant.

The goal of this organization is to digitize contracts for sale and property mortgages without any barriers. When this technology is in place, these sorts of documents can be authenticated beyond any doubt because of the security measures of blockchain.

3) Secure and Transparent Land Registries

Governments and municipalities are increasingly adopting blockchain to create secure, tamper-proof land registries. These registries provide a transparent and immutable record of property ownership, reducing the risk of disputes and fraud. By digitizing land records and making them accessible through blockchain, authorities can improve the accuracy and efficiency of property transfers and legal processes.

4) Sustainable and Smart Real Estate Developments

Blockchain technology is being integrated into smart city and sustainable real estate projects to enhance data management, resource allocation, and operational efficiency. By using blockchain to track energy usage, waste management, and other environmental factors, developers can create more sustainable and eco-friendly properties. Additionally, blockchain's ability to securely handle vast amounts of data supports the development of smarter, more connected urban environments.

5) Property Management Automation for Reduced Costs and Time Spent on Administrative Tasks

The use of blockchain technology in the real estate sector will eliminate a lot of manual paperwork and the use of multiple software programs. All of this can simply be replaced by blockchain technology for the betterment of the up-gradation of the entire industry. The entire property management process can become very effective and efficient with the help of a single decentralized application with blockchain-based smart contracts.

6) Transparent Data Tracking and Analysis for Better Decision Making

Blockchain applies a ledger technology that lasts for as long as the network is running. Because of this, all data on the property or the history of the building is recorded and is readily available to all future owners and investors. This means that blockchain can make real estate investing fairer to all the parties involved.

On top of this, blockchain technology when combined with Big Data provides a better opportunity for more accurate tracking of customers. It also allows across borders and banks. This helps in reducing the risk of default taking place. Big data real estate players can now analyze data more accurately and make real-time decisions on the basis of that research.

7) Cross-Border Real Estate Transactions

Blockchain simplifies cross-border real estate transactions by providing a secure, transparent platform for conducting deals and verifying identities. This technology eliminates the need for multiple intermediaries, reduces transaction costs, and speeds up the process, making it easier for international investors to participate in real estate markets around the world.

Conclusion

The integration of blockchain technology in the real estate industry offers transformative potential by addressing several longstanding issues such as transparency, security, and efficiency. By leveraging secure databases, smart contracts, tokenization, and transparent data tracking, blockchain can streamline transactions, reduce costs, and enhance the overall investment landscape. Although there are technical and legal challenges that need to be overcome, the benefits of blockchain in real estate are clear. As the industry continues to adapt and professionals with blockchain expertise become more prevalent, the real estate market is poised to become more innovative, efficient, and accessible. The future of real estate lies in embracing these technological advancements to unlock new opportunities and drive sustainable growth.

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