UPRETS INSIGHT | The Blockchain in Real Estate Investing. 5 Upcoming Trends
When it comes to real estate investment, several questions strike your mind. Aren’t they? If we have guessed that right, then these questions might be like — what are the current trends in the property market? Is it the right time to sell my property? How much will my house be worth in 20 years?
Answering such questions is quite difficult in this sector. Real estate is a sector where trends have always been important. Identifying blockchain trends in this sector is tricky, but some experts have already spotted the direction in which some blockchain-powered real estate platforms are heading. Well, it is called digitalization.
Digitalization is the most trending buzzword in the real estate market. Innovators are working hard to contemplate strategies to bring blockchain technologies in real estate investments. Blockchain will make the trade of real estate easy. The liquidity of the property gets enhanced when it is established as a blockchain-powered real asset.
With the introduction of tokenization, buyers can attain maximum benefits from the concept of fractional ownership. Administrators and middlemen can be effectively replaced with the help of this technology at distinct possible levels. This further helps to reduce costs, decrease risks, enhance liquidity, etc.
5 Upcoming Blockchain Advancements for Real Estate That Are Soaring on the Horizon
Fractional Ownership and Liquidity to Invite a Pool of New Investors
The foremost trend that blockchain is expected to bring in real estate is liquidity. Blockchain makes the transactions super easy, and individuals can conveniently attain benefits of fractional ownership. With fractional ownership, buying and selling small portions of homes can be done immediately, as defied to complicated procedures.
Another kind of liquidity is being able to rent your purchased real estate out. Renting can be short-term or long-term after purchasing the property. This can serve as a uniform stream of proceeds. It allows a great pool of investors to enter the market and acquire benefits offered. The emergence of blockchain technology is bringing a big change in the real estate sector.
Exchange Digital Ownership through Digitalization
Digitalization is believed to influence blockchain in real estate the most. Digtalization is referred to as the process through which real-world assets are exemplified digitality on a blockchain. This real estate trend has the most impactful application, where an ecosystem is created. This ecosystem further allows investors to seamlessly exchange their digital ownership with one another.
A great level of liquidity is provided to investors by blockchain technology. This financial access has never been achieved previously in the real estate market. The value of digitalization is proven, and meaningful investment opportunities are offered with this modern technology.
There Would Be No Intermediaries with Blockchain Investment
In modern times, the real estate industry will no longer have middlemen. Agents will have to learn advanced technologies to deal with the customers of the real estate industry.
Blockchain technology will remove third parties who currently charge fees in the real estate transaction. This will reduce the risk of fraud while renting or selling an apartment, and the time taken to complete a transaction will also be reduced.
Blockchain platforms will help simplify the entire process. The exclusion of intermediaries is one of the major advantages of blockchain technologies. Moreover, customers will also get free access to the platforms, and they can enter the platform at any point in time.
Improved Trust to Make the Process More Efficient
Blockchain technology has provided the real estate industry with a verifiable option for sharing valuation details efficiently.
Data and documents are compiled in one place. Without blockchain, several estate transactions are performed through wire transfers that take days to complete.
On the contrary, blockchain transactions depict a streamlined process by delivering documents quickly — a cost-effective solution to one of the major challenges faced by the real estate industry. Several aspects of the real estate industry are benefited by the use of blockchain technology.
Property Passports on Blockchain
Land registry is a daunting task and is a popular source of several sleepless nights for homeowners and buyers. The system of registry laid by the government is outdated, ridden with several human errors, and very tough to set right.
There is a need for a unified land registry, most probably by using the blockchain technology. It is required since investors are enjoying global access to local investments.
This digital building ID would enhance transparency and help prospective investors to make an informed choice.
The real estate industry is worth hundreds of trillions of dollars. But wealthy and large corporations are dominating it. Blockchain technology has made it apparent for more people to access the real estate market. The real estate market empowered by blockchain technology has rendered transparent, equitable, and secure transactions.
Real estate transactions may ultimately become completely peer-to-peer activities with blockchain-powered platforms carrying out most of the work. Huge changes in property investment are brought in with the help of blockchain. The future of real estate is hard to imagine without blockchain technology.
About UPRETS:
UPRETS is a platform focused on simplifying investment in real estate.
We are dedicated to providing a convenient, compliant and advanced real estate digital securitization platform for property developers, asset owners and investors globally.
By utilizing UPRETS platform, real estate developers and assets owners can create digital securities for their properties, allowing investors to benefit from the rental dividends and capital appreciation of the properties in major global cities.
Backed by a publicly listed real estate conglomerate (NYSE:XIN) and our award-winning, patented blockchain technology, Xbolt, we bring a network, experience and luxury assets to the platform.
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