Real Estate Investment is increasingly becoming attractive, as more and more people look into purchasing and selling their real estate holdings. For some, the motivation could simply be the desire to own a home. For others, moving from one place to another forces them to sell their property or lease it in order to afford living in another place. There is also the world of commercial real estate, whereby property is transferred or obtained for use in conducting business. At the core of real estate is the frequent need to make monetary transfers. Also, people dealing in real estate have to have clear records of ownership and property transfers to make the trading legitimate.
Blockchain technology is a form of peer-controlled technology whereby all stakeholders have singular and equal access to products or documents in a particular network. Blockchain network lack a single oversight authority. Instead, the system is controlled equally by all the participants, giving them a lot of autonomy over their own activities. Blockchain technology has been used in multiple sectors, with the most widely known are being financial.transactions. Blockchain technology users conduct these transactions using virtual currencies that are not regulated by any monetary currency. While this has had several drawbacks, it promotes a lot of transparency and accountability in the transfer process.
The real estate industry relies on a lot of record keeping, as well as transfer of funds from one party to the next. Even in companies that aim for the highest levels of efficiency in these transactions, the process is still quite tedious and leaves a lot of room for errors. For the clients, conducting research on previous property transactions is quite a long process, and they often have to obtain the services of a lawyer to help.with this. Currently, real estate markets also lack a central point of reference where all clients can do their research on property transfers before making a purchase. For those selling or leasing out their properties, keeping up with client details and payments requires a lot of work in the commercial real estate market. Here are some of the ways Blockchain could change the real estate investment landscape;
Blockchain developers might want to start catering for real estate companies from now onwards. They will contribute to easing real estate transfers in many ways. One, it will be easy for buyers to carry out due diligence on a specific investment before purchasing or leasing it. A blockchain system will allow for organised record keeping. It will also provide users with all the information they need very quickly. Since all the persons in the system have access to the records, accountability will also be ensured. Blockchain technology secure information very well, which will enhance trust in the system because the records will be legitimate. Without this, the due diligence process will continue to prove tedious for new buyers, thereby slowing down real estate processes.
In real estate, a key part of getting exactly what the buyer is looking for is conducting a thorough property search. This way, the buyer will find the perfect fit and make an informed decision. The commercial real estate industry has taken significant steps towards ensuring that this process is as seamless as possible. For example, companies now list all of their properties on a single website and buyers can easy browse through all the options. Even so, the system still lacks uniformity across multiple companies. This means that consumers have to stick with one company or search for another one if they want to compare rates. A dedicated Blockchain developer could make this process much easier by linking all these sites into one single blockchain system that all consumers can use.
Ease of leasing
Leasing will be made much easier when real estate companies hire a Blockchain developers team. Leasing one's property involves obtaining financial payment regularly, which is often facilitated by the real estate agent. For companies working with a lot of clients, this process involves a lot of hard work. On a blockchain platform, any payments would directly be made to the home owner, eliminating the need for ascertaining payment. This would make the process straightforward and efficient. It would also be much easier to keep up with what clients have paid, and when they made the payment. Any arrears will be easy to deal with.
Tracking cash flow
It is no secret that the commercial real estate market deals with a lot of cash flow on a daily basis. These transfers include lease payments, property sales, payments for body corporate services, salary payments, reimbursements, amongst others. All this cash flow requires clear tracking as well as record-keeping. Using a blockchain system, all the monitoring cam be done from a central point. This means that it will.be easy to know what transfer was done when, and where the cash was directed.
A blockchain real estate system will enhance trust amongst all stakeholders. This is because it will promote the use of open records as well as easy sharing of information about the industry. Companies will be able to trust their clients to fulfil their end of the bargain, and vice versa. Money will be tracked easily, and this will enhance accurate accounting.
Ease of change
With the company using blockchain platforms, any changes or overhauls will be easy to conduct without losing any key records. This means that in a fast-paced commercial real estate market, companies will easily keep up with new developments.
Blockchain technology is clearly the way to go for the real estate industry. Not only is it more convenient, it is also very efficient. Real estate companies with a very wide reach should seriously make arrangements to hire Blockchain developer groups for their operations. The process might require a significant amount of resources, but it offers a return on investment that no company should pass up. For other businesses, an operations overhaul is in the works, and these modifications could not have come at a better time. Including blockchain in the company changes will be an added advantage in an increasingly volatile market. It is safe to say that consumers and potential clients will be more attracted to companies with these kinds of advancement at the expense of those without.
I, Kuldeep Kundal, the CMO of Cyber Infrastructure (P) Limited, and expertsfromindia is the trademark of the CIS. I have been publishing technology content for the last ten years. Being inquisitive towards technology and management strategies has impressed upon me the mantra of success is to gain knowledge to share it.