• Facebook
  • Twitter
  • Youtube
  • Instagram
  • Linkedin
  • Clutch
  • Github
  • Pangea
  • Behance
Request for proposal
  • Company
    • About Us
    • FAQ
  • Services
    • Discovery phase
    • Mobile Application Development
    • Web Development
    • Quality Assurance
    • UI/UX design
    • Data Science and Big Data Analytics Services
    • Artificial Intelligence and Machine Learning Services
    • Software Development Services for Startups
    • IT System & Software Integration Services
  • Industries
    • Healthcare
      • Custom Telemedicine Application Development Services
      • Custom mHealth Apps Development Services
      • Medical Device Software Development
    • Education
      • E-learning Software Development Services
      • LMS Development Services
      • School Management Software Development Company
    • Logistics
    • Fintech
      • Banking Software Development
      • Trading Software Development Services
    • Real Estate
      • HOA Management Software Development
      • MLS Software Development Services for Real Estate
      • IDX Software Development and Integration
      • Property Management Software Development
  • Technologies
    • Flutter
    • Python (Django)
    • .NET core
    • Node. JS
    • ReactJS
    • React Native
    • Custom iOS App Development Services
    • Custom Android Application Development Services
  • Success Stories
    • Reviews
    • Case studies
  • Work at Inoxoft
    • Vacancies
    • News & Events
    • Who we are
    • Career
    • AcademyX Courses
    • Benefits
  • Insights
    • Blog
    • White papers
  • Contacts
  • Facebook
  • Twitter
  • Youtube
  • Instagram
  • Linkedin
  • Clutch
  • Github
  • Pangea
  • Behance
  • Company
    • About Us
    • FAQ
  • Services
    • Discovery phase
    • Mobile Application Development
    • Web Development
    • Quality Assurance
    • UI/UX design
    • Data Science and Big Data Analytics Services
    • Artificial Intelligence and Machine Learning Services
    • Software Development Services for Startups
    • IT System & Software Integration Services
  • Industries
    • Healthcare
      • Custom Telemedicine Application Development Services
      • Custom mHealth Apps Development Services
      • Medical Device Software Development
    • Education
      • E-learning Software Development Services
      • LMS Development Services
      • School Management Software Development Company
    • Logistics
    • Fintech
      • Banking Software Development
      • Trading Software Development Services
    • Real Estate
      • HOA Management Software Development
      • MLS Software Development Services for Real Estate
      • IDX Software Development and Integration
      • Property Management Software Development
  • Technologies
    • Flutter
    • Python (Django)
    • .NET core
    • Node. JS
    • ReactJS
    • React Native
    • Custom iOS App Development Services
    • Custom Android Application Development Services
  • Success Stories
    • Reviews
    • Case studies
  • Work at Inoxoft
    • Vacancies
    • News & Events
    • Who we are
    • Career
    • AcademyX Courses
    • Benefits
  • Insights
    • Blog
    • White papers
  • Contacts
  1. Home
  2. Blog
  3. https://inoxoft.com/blog/blockchain-technology-in-real-estate-how-its-changing-the-industry/Blockchain Technology in Real Estate: How It’s Changing the Industry

Request for proposal




    Please share with me NDA in advance.
    Please prove you are human by selecting the Cup.

    Blockchain Technology in Real Estate: How It’s Changing the Industry
    Real EstateStartup & enterprise solutionsTools & Technologies

    Blockchain Technology in Real Estate: How It’s Changing the Industry

    Pub: Mar 11, 2022•Upd: Apr 26, 2022
    Industry:
    • Real Estate
    • Blockchain
    • Ecommerce
    • Retail
    Services:
    • Software Development Services for Startups
    • Web Development
    image
    Written by
    Nazar Kvartalnyi
    COO at Inoxoft, former .Net Software Engineer
    Content
    • What is Blockchain in Real Estate?
    • What are the benefits of blockchain in Real Estate?
    • 1. Easier search of property
    • 2. Faster pre-purchase
    • 3. No intermediaries are needed
    • 4. Provision of smart contracts
    • 5. Safe property transactions
    • 6. Low entrance to Real Estate investing
    • 7. Real Estate becomes a liquid asset
    • Blockchain use in Real Estate today
    • Project Financing
    • Property Management
    • Urban Planning
    • Payments and leasing
    • The impact of blockchain and Real Estate investing in the USA
    • Is the industry going to change while using blockchain in Real Estate and in the future?
    • Consider Inoxoft your trusted partner in Real Estate development
    • Make data-driven decisions
    • Use advanced analytics
    • Constantly monitor risks
    • Use our tech-driven competitive potential
    • Are up for optimization and customization
    • Final thoughts

    Real Estate is an industry that started using IT technologies actively within the last 10 years. The industry’s market revenue as of September 2021 was different in various global markets.

    Blockchain Technology in Real Estate: How It’s Changing the Industry

    For instance, the largest Real Estate market growth was observed in North America – $1.59 trillion. The second place belongs to the Asia Pacific – $1,50 trillion. In Europe, the Middle East, and Africa, Real Estate counted for $797 billion. And the lowest market revenue appeared to be in Latin America – $51.5 billion.

    With the evolution of the Real Estate industry and the trendy advancements, it became essential to use software development technology in the domain as well. What is the industry implementing to stay competitive in the market? Mainly, automation of Real Estate processes, personalization, customization, and security. Here the latter shifted towards blockchain. What does blockchain in Real Estate do? What are the benefits of blockchain technology in Real Estate? Let’s explore!

    What is Blockchain in Real Estate?

    Looking for Dedicated Team?
    Request for proposal

    Have you heard about blockchain? Where did blockchain come from?

    The first to introduce blockchain technology was Satoshi Nakamoto in 2008. It aimed to transfer cryptocurrencies (bitcoin, ether, etc.) among the public. Using blockchain in Real Estate became possible starting from 2016. Blockchain started initial coin offerings (ICOs) and security token offerings (STOs), also sometimes called digital security offerings (DSOs). So,

    Blockchain is the system that works with transmitting digital information. It records data to make it impossible to hack it, change it or compromise the system itself. So, most of the global transactions are made using blockchain technology. Especially, the ones involving finances (cryptocurrencies). Most of the Real Estate transactions have always been made offline, i.e. face-to-face. But, recently, and with all the Covid-19 pandemic, online transactions became a priority. So, the industry was introduced with smart contracts. What did these contracts change? Perhaps, Real Estate became a token that is now transferred online like cryptocurrencies. And, on top of it, these transactions are extremely secure.

    Traditionally, Real Estate has been all about making buyers and sellers connect via listings. But, with the introduction of blockchain platforms, this aim became easier to achieve. Also, brokers, lawyers, and banks that belong to the industry can soon be gone. But would they? Can humanity experience listings, payments, and legal documents on a blockchain platform? So, there is a possibility intermediary might no longer exist. What does that make the Real Estate transaction like? No fees, commissions, and a faster process in the end. Is it our Real Estate future?

    Where does blockchain in Real Estate sector change the industry?

    • In money transfers
    • In property, transaction, and title ledgers
    • In smart contracts
    • In voting

    The way any transaction is being carried out is precisely explained below:

    Blockchain Technology in Real Estate: How It’s Changing the Industry

    Users request transactions, which are later sent to a peer-to-peer network of nods. The nods validate transactions and encrypt them. Then these transactions combine with the other ones in the new block of data. And this newly created block forms the blockchain system by adding it. Sounds easy and innovative!

    What are the benefits of blockchain in Real Estate?

    Giving extra security, the easiness of digital asset transfer, and many other features are not the only benefits of blockchain in Real Estate. There are also the following advantages:

    Blockchain Technology in Real Estate: How It’s Changing the Industry

    1. Easier search of property

    With blockchain, you can say no to third-party property listing platforms! Some of the platforms require a subscription fee on a monthly basis. Also, the platforms poorly update each other on the availability of property and can disinform users. Which extremely undermines property values.

    Blockchain has a single decentralized database with property listings. And, this data is accessible to brokers, more efficient and reliable. Of course, there is a fee, but a lot lower than the one on the third-party platforms.

    2. Faster pre-purchase

    Automation of transactions reduces the risks of any digital fraud completely. How? By promoting the speed and safety of transactions. And it sounds perfect. The simplicity of data transmission and time reduction between signing the pre-purchase contract and the deed of sale before the notary is a perfect innovation.

    3. No intermediaries are needed

    For those, who think that brokers, lawyers, and banks will soon be out of the Real Estate selling and buying process – stay calm! These intermediaries will last as there is still demand on the market. Besides, some of the users trust brokers and banks more. But, it should be noted that blockchain applications in Real Estate allow buying and selling property directly. This makes the process faster and reduces lots of human factor-based risks.

    4. Provision of smart contracts

    Smart contracts are recorded and verified contracts with the smart code embedded in the blockchain. This allows you to automatically withdraw payments. These contracts can be signed with the buyers/sellers directly. The process looks like this:

    Blockchain Technology in Real Estate: How It’s Changing the Industry

    Smart contracts require fewer steps to take and are considered to be really innovative in Real Estate.

    5. Safe property transactions

    Safety is always a priority when it comes to transactions. Blockchain in Real Estate industry aims primarily at transaction encryption, so nobody could alter it, change it and commit fraud. When the record is being made in blockchain, there is no way you can manage to change something. 

    6. Low entrance to Real Estate investing

    Blockchain increases transparency due to the fact that there is a record of the public ledger nobody can alter. This is a transparent transaction seen by the two parties. It promotes secure contract signs and allows to see the benefits of decentralization. You can verify it at any time. 

    7. Real Estate becomes a liquid asset

    It is easier and faster to sell and buy securities representing physical assets as compared to the traditional buying and selling processes in Real Estate. The industry market becomes “liquid” when the process of selling is quick and at its market value or close to it.

    Turn to blockchain technology! Experience the quality of Inoxoft’s property management software development service.

    Blockchain use in Real Estate today

    There are different and amazing use cases of blockchain for Real Estate, eCommerce, and Retail sector. For example,

    Project Financing

    Startups carrying out new Real Estate projects might find difficulties asking for investments and financing. And it is important for new ideas to evolve and get financial support. 

    So, what kinds of difficulties do they face? 

    • Little interest rate by banking institutions (29%)
    • Difficulties administering crowd financing

    With blockchain technology, it becomes easier to get the needed money to grow. Blockchain is transparent, it increases ROI for investors, and the process of investing itself becomes easier. This may be a great opportunity to increase the number of investors willing to support the business. Smart entrepreneurs will evaluate all the plusses and minuses. But, fortunately for everyone, blockchain is perspective!

    Property Management

    If you are an enterprise the best way to enhance your property management is to go for blockchain technology.

    Blockchain makes it easier to

    • secure data sharing
    • streamline rental collections to property owners
    • carry out payments to property owners
    • provide premium due diligence everywhere

    The company gets an increased operational efficiency, which leads to fewer risks, less time spent on property management (property inspection), and lots of saved costs.

    Urban Planning

    The public almost never takes part in urban planning. So, it is up to blockchain to change that. The planning platform might include:

    • educational resources
    • token-based participation incentives
    • a feedback loop between stakeholders

    This would engage the community 100% and allow local communities to participate in the property development value chain. Communities like to take part in discussions about their land.  

    Payments and leasing

    The technology of distributed ledger makes it possible for leases to be signed/paid on-chain. This allows

    • decreasing manual work
    • automating rental and other payments to owners

    Using smart contracts allows to automate different payments and promote cooperation between tenants, landlords, and service providers.

    The impact of blockchain and Real Estate investing in the USA

    Looking for Dedicated Team?
    Request for proposal

    The United States of America has one of the biggest Real Estate markets in the world.

    Blockchain Technology in Real Estate: How It’s Changing the Industry

    According to Statista, US cities expect to have the highest demand in 2022. There are 15 cities expecting investments, but Nashville, Austin, and Boston are on the top. This means, new ideas are being developed and launched. 

    A survey has been conducted among 1,240 Real Estate investors. These investors claimed that they planned at least one blockchain in commercial Real Estate property investment in 2021. This may also be the issue in 2022. But, you can surely predict that there will be more than one property investment this year. The market experiences growth, there is a great demand for property. Especially, in America, where most of the citizens enjoy rent/leasing. Back in 2021, the largest share of investors was to make between 1 or 3 deals, which is 67.6%. So, every investor was going to have lots of advantages in the Real Estate market. With the ongoing tendency, this year expects a better investor engagement and more money spent on the Real Estate businesses. More than 3 deals made by a single investor are a complete reality. 

    Is the industry going to change while using blockchain in Real Estate and in the future?

    Global Real Estate is in the middle of growth in 2022. But, right now, it is more accessible by enterprises like it was before. With blockchain use in Real Estate, more people will receive access to transactions. And not just simple transactions, but peer-to-peer ones without an intermediary. And, they can count on transparency, security, and equitability here. Real Estate transactions are actively shifting towards peer-to-peer activity. And, blockchain platforms are the means allowing this to happen. The blockchain platform is a breakthrough for simple people to be involved directly. How great is that? 

    Look at how quickly NFT became the top trend on the market? And, it is also blockchain. Inoxoft is happy to partner with Sandmilk, who creates brilliant NFT collections using blockchain and token technology. The same will surely happen to blockchain development in Real Estate. The market is ready and the future is promising! It’s time for blockchain in Real Estate startups to come forward with new ideas. With their innovative decisions, the Real Estate industry will have a bright future ahead. 

    Find out more about real estate development technology! 

    Consider Inoxoft your trusted partner in Real Estate development

    Inoxoft is a Real Estate development company that offers a variety of services on the market these days. Our developers, designers, and managers are skilled, informed about the newest trends, and ready to implement your wildest ideas. 

    We can successfully work on your project and develop:

    • Real Estate CRM software
    • Property rental management software
    • Property management software features
    • Real Estate IDX technology integration
    • MLS software development services

    Contact us to receive a top-notch consultation from our certified experts! Enhance your business with Inoxoft, get the Real Estate app of your dreams!

    Stop thinking about your project on your own. Let us do all the work! If you’re asking yourself, how do we work, we:

    Make data-driven decisions

    Using business intelligence to convert unstructured data into a structured one, generate and visualize lots of industry insights.

    Use advanced analytics

    Using part of our data science expertise to help you track potential clients/investors and transform user feedback into a pleasant experience.

    Constantly monitor risks

    This allows companies to analyze their target markets (audiences) and forecast future results (either problems or trends).

    Use our tech-driven competitive potential

    It is vital to implement innovation and new Real Estate trends.

    Are up for optimization and customization

    Custom Real Estate solutions are developed at key, enhancing your business, security, sales, saving time and costs.

    Final thoughts

    Looking for Dedicated Team?
    Request for proposal

    The article has explored the advantages and disadvantages of blockchain in Real Estate. So, to summarize, blockchain is not a new technology in the world, but it is definitely the new one in the Real Estate sector. And, the major blockchain impact is disrupting the industry for the better. For example, it promotes

    • Real Estate tokenization
    • Great ways to improve cybersecurity
    • Real-time knowledge about the status of properties
    • Growth of blockchain infrastructure
    • Easier Real Estate transactions
    • Development of blockchain-based solution

    And these enlisted features are not even the limit yet! Blockchain in Real Estate has a vast field to cover. The future is in the blockchain. 

    Frequently Asked Questions

    What is blockchain in real estate?

    Blockchain is the system that works with transmitting digital information. It records data to make it impossible to hack it, change it or compromise the system itself.

    How to use blockchain in real estate?

    • Project financing
    • Property management
    • Urban planning
    • Payments and Leasing

    What is the blockchain in real estate investment in the USA??

    A survey has been conducted among 1,240 real estate investors. These investors claimed that they planned at least one blockchain in commercial real estate property investment in 2021. The largest share of investors was to make between 1 or 3 deals, which is 67.6%. 

    How useful was this post?

    Average rating 5 / 5. Vote count: 1

    No votes so far! Be the first to rate this post.

    ShareShareShare

    Subscribe


     

    Schedule a call with Tech LeadBack to blog
    Related casestudies
    Visual Solution for Real Estate Company
    Visual Solution for Real Estate Company
    1C + Custom Business Software: Aggregated Reports
    1C + Custom Business Software: Aggregated Reports
    Predictive Customer Segmentation for Retail Company
    Predictive Customer Segmentation for Retail Company
    Property Management Software
    Property Management Software
    Chatbot Development
    Chatbot Development
    Top 5 posts
    What is Mobile Banking? Advantages and Disadvantages of Mobile Banking
    What is Mobile Banking? Advantages and Disadvantages of Mobile Banking
    7 Software Development Models Comparison: How to Choose the Right One?
    7 Software Development Models Comparison: How to Choose the Right One?
    Reasons Why to Use Predictive Analytics in Retail and eCommerce
    Reasons Why to Use Predictive Analytics in Retail and eCommerce
    How to Design a Web Application Architecture: Components, Models and Types
    How to Design a Web Application Architecture: Components, Models and Types
    Use of Big Data in Education Industry: History, Benefits and Examples
    Use of Big Data in Education Industry: History, Benefits and Examples
    You may also like
    27 Things each developer should do before 30
    27 Things each developer should do before 30
    Everyone knows that life is not going to end up after turning 30 years old. Despite the fact that, in
    Aug 12, 2020
    Machine Learning Explained: Startup’s Utility Box – Inoxoft
    Machine Learning Explained: Startup’s Utility Box – Inoxoft
    As Machine Learning is becoming in demand these days, it is unwise to ignore it altogether. Statista projects that the
    Apr 27, 2022
    Learn 10 tips on how to outsource software development
    Learn 10 tips on how to outsource software development
    Is your business doing quite well and do you want to take from it even more advantages? Maybe are you
    May 17, 2022
    image
    • Kulparkivska St, 59, Lviv, Ukraine, 79015
    • 1601 Market Street, 19th Floor, Philadelphia, USA, PA 19103
    • 3 Hanehoshet St, Building B, 7th floor, Tel Aviv, Israel, 6971068
    • contact@inoxoft.com
    Menu
    • About Us
    • Case studies
    • Reviews
    • Vacancies
    • News & Events
    • Who we are
    • Career
    • Benefits
    • Blog
    • Knowledge Base
    • Scholarship
    Services
    • Discovery phase
    • Mobile Application Development
    • Web Development
    • Quality Assurance
    • UI/UX design
    • Data Science and Big Data Analytics Services
    • Artificial Intelligence and Machine Learning Services
    • Software Development Services for Startups
    • IT System & Software Integration Services
    Industries
    • Healthcare
    • Real Estate
    • Education
    • Logistics
    • Fintech
    Technologies
    • Flutter
    • Python (Django)
    • .NET core
    • Node. JS
    • ReactJS
    • React Native
    • Custom iOS App Development Services
    • Custom Android Application Development Services
    • Terms Of Use
    • Privacy policy
    • Sitemap
    • Facebook
    • Twitter
    • Youtube
    • Instagram
    • Linkedin
    • Clutch
    • Github
    • Pangea
    • Behance
    © 2022 Inoxoft, All rights reserved

    Contact us

      Have a project? Feel free to call, send us an email or complete the enquiry form.




      Please share with me NDA in advance.
      Please prove you are human by selecting the House.

      We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are agree to our privacy policy.Agree