The Latest Uses Of Blockchain In Real Estate

Despite having a projected growth of over $4,000 billion worldwide by 2025, the market of land and properties works with an outdated system in areas such as record storage of documents and international transactions, often hindering the process for both owners and investors.

In recent years, the use of blockchain has started to attract attention as an alternative tool in realtech services. This is supported by the World Economic Forum, which points that 10% of the global GDP will be stored in blockchain in the span of the next five to seven years.

According to a recent study, the development of blockchain products and services for real estate has experienced a sustained increase, with up to 47% of the market currently developing in Europe.

Here are some of the latest use cases for blockchain in real estate:

Making properties liquid and affordable. Tokenization is a solution in a challenging year for the real estate market, with fewer opportunities for first-time buyers to own a house due to a significant price increase of properties and land of over 4% only in the US. The tokenization of properties and even fractions of them provide a much needed liquidity for sellers and easiness of access for investors.

In the case of Latin America, tokenizing real estate has attracted attention in the Dominican Republic, where buying properties through security assets speeds transactions and ease the process of citizenship for foreigner buyers.

Storing land titles and deed records. The use of a digital safe platform for land and property records it’s an increasing need for government institutions, following a paperless trend in order to avoid the common occurrence of document damage, misplacement and corruption.

This type of solution is already being applied in Abu Dhabi (UAE), where government land records are being stored on a blockchain platform among other 46 services processed through the digital service.

Property sale and title management. The registration, administration and validation of real estate documents is often a key issue for realtors and governments, where blockchain has proven to be useful. This is the case for government housing plans, where a blockchain service allows the public and authorities to keep track of their housing benefits by having an open record stored in a public platform.

Overseas Transactions. On the other hand, investors would benefit from almost-immediate overseas transactions. This was the case of the first house ever bought using blockchain, proving the use of smart contracts on Ethereum to speed real estate operations made without the buyers needing to set foot outside their country to make an international investment.

Real estate solutions have started to make an impact in Latin America, which currently covers 4% of the current blockchain use cases for the land and housing market. Here, Atix is among the pioneer startups to provide solutions in 2019 (currently protected by NDAs) and our team is set on keep developing more services oriented to make real estate investment easier.

Do you have a solution related to real estate you’d like to see? We’d love to hear it! Contact us here: info@atixlabs.com.