Future of Blockchain Technology in Real Estate
Blockchain Technology has been changing the way real estate is owned today, managed and transacted across the world. However, it will definitely take some more time now for this technology to show off its true and full potential, but this technology has already started showing impacts in different sectors including real estate. The true potential of Blockchain Technology is to automate the execution of real estate transactions using the latest technologies. It even helps in creating fractional ownership of property for sale by using tokens that are being traded on Blockchain-based exchange, thereby opening different investment options in the realty market.
How Blockchain Technology can affect Blockchain Technology Transactions?
Platforms and Markets
Blockchain Technology in Real Estate usually focuses on listing and connecting sellers and buyers together. It launches a new way to trade real estate and also allows the trading platforms and online marketers to support all the real estate transactions comprehensively. There are many platforms developed in real estate using Blockchain Technology to facilitate rental property and real estate transactions. By tokenizing India Property, assets can easily be traded just like stocks and transactions can be done online.
Eliminates Intermediaries
Banks, lawyers, brokers and other intermediaries in the process would be removed from the real estate ecosystem with the launch of Blockchain Technology. Blockchain Technology will soon be ushered in a shift in its roles and participation in realty transactions. Many new platforms can now enjoy functions like payments, listings, legal documentation and more efficiently with this technology. Removing the intermediaries from the process will help sellers and buyers to get more out of their money and save on commissions, fees, and other charges.
Liquidity
Property in India is considered as an illiquid asset as it takes a longer time to get sold. Even if it is Affordable Housing Projects, it takes time to get sold. But this is not the case when it comes to tokens and cryptocurrencies as it is available readily for trading for fiat currencies via exchanges. As a token, the real estate can be traded easily in exchanges. Now sellers are no longer required to wait for buyers who can afford to purchase the entire property to get some value out of it.
Partial Ownership
In Blockchain Technology, fractional ownership is allowed and this simply lowers the barriers to the realty investments. Investment in the realty market demands significant upfront money so as to acquire the property. Moreover, investors can also pool their money to grab the biggest ticket properties. With Blockchain, investors need to have access to the trading application to sell or buy even fractions of tokens they see it fit. Fractional ownership prevents investors to manage the property themselves like leasing and maintenance.
Maintenance of property alone adds up to lots of costs and dealing with the tenants is troublesome efforts. So, fractional ownership removes all these complications, while they remain the owners of the property even when it is under fractional ownership.
Decentralization
In Blockchain Technology, security and trusts are considered as decentralized technology. All information that is stored in Blockchain Technology is easily accessible to all peers on the network, thereby making data transparent as well as immutable. The decentralized exchange has built trust in the real estate ecosystem. All information and data are verifiable to the peers, and sellers and buyers would have more confidence while performing the transactions. All fraud attempts in the process would be minimized, while smart contracts would become admissible records.
Overall Costs
Because of such transparency, all associated costs in realty transactions would be removed significantly. Apart from saving made from cutting intermediaries, commissions, professional fees and other costs like inspection costs, registration fees, taxes, loan fees associated with real estate would be removed from the process. The real estate cost varies from jurisdiction to jurisdiction and state to state and hence all such costs can be removed from the equation as the Blockchain Technology automates the process and make it the part of the real estate ecosystem.
So, these were some of the ways how Blockchain Technology can impact the future of real estate in India. There are many free to use platforms where you can out your trading skills to test before using the technology for all your real estate transactions. You must practice all the trading strategies so that you become ready for the Blockchain Technology used in the real estate market today.
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