7 Benefits of using Blockchain Technology in Real Estate

Blockchain technology is thoroughly used in important industries in the world and now it is beginning to revolutionize the real estate industry. Blockchain can be described as the technology that helps in storing a digital, public ledger of all transactions securely and permanently in a block. These transactions are available publicly in the peer-to-peer databases termed as the chain. Further, this technology is assisting real estate professionals to perform better in the aspects like property valuations, handling fraud, and organizing tasks and because of this they can offer unparalleled service to their clients.

That is why Blockchain is quickly becoming a major part of the real estate industry. If you are a homebuyer, seller or an investor and want to know how Blockchain and crypto real estate is effectively used in the real estate industry to benefit you, you can talk with real estate agents in Dubai.

But What Are The Benefits Of Using The Blockchain In Real Estate?

Offers Smart Contracts

One great feature that Blockchain real estate brings to the real estate industry is the Smart Contract. The contractual agreement of terms and conditions decided by two parties is recorded in the form of code language. If a specific condition in the agreement is met then it is stored on a decentralized Blockchain platform.

Therefore without the need for a third party, smart contracts assist in efficiently performing real estate dealings transactions. For instance, after storing the property details and conditions in an agreement the smart contract can be used to automatically transfer the ownership of a property to the homebuyer after the set conditions are met. No hefty amount of paper is required in this process and that is why it is called a Smart Contract.

If you need more details about how Blockchain can make real estate transactions easier, you can speak with a real estate broker in Dubai who is eager to assist you.

Fractional Ownership

Blockchain offers a feature known as tokenization which converts real estate assets into digital tokens and these can be traded on the Blockchain platform. Tokenization of real estate assets allows fractional ownership of the assets. So this means that people with smaller budgets will also be able to invest in real estate assets. Plus groups of people can also join together to own real estate shares.

In this way, the Blockchain-powered platforms help more investors to invest in real estate by tokenizing the real estate assets and it gives them amazing control over their investments.

Digital Identities

A person can create a digital identity for their property in the Blockchain platform for performing digital transactions. It stores the information of that property in digital form like the tenant profile, financial and legal status, vacancy and more.

A digital identity can solve the issues that are common in physical identity proofs and it can also quicken the pre-transaction process such as financial evaluation, underwriting and more. Plus possessing digital identities can also rapidly reduce inefficiencies and errors.

Reduces Expenses

One major benefit of using Blockchain real estate is that it will limit the number of intermediaries such as lawyers and banks. The new platform can take over the processes like payments and legal paperwork and in this way eliminates the extortionate fees a person may pay to an intermediary to facilitate a real estate deal.

Liquidity

Homeowners and investors have to sell the properties for liquidating the assets and it is a process that takes a lot of time. But the tokenization feature in Blockchain technology provides real estate assets more liquidity.

The digital tokens on the Blockchain offer ownership of a property to the person who owns it. They can sell the tokens instead of selling the house by traditional methods. In this way, they profit from their real estate assets quickly.

Excellent Transparency

A great many problems in real estate deals happen because of lack of transparency. This is also an aspect that Blockchain technology can take over. The property information is stored in a safe platform and it is also visible to all parties associated with it. A person can also verify the details by easily accessing the data whenever they require it. These features make Blockchain a trustworthy technology for investors and homebuyers.

Enhanced Security

The information of the homeowner, investor and their properties are sensitive and crucial. Blockchain technology changes how this critical information is viewed by all the parties involved. In its platform, a record can be created which cannot be altered. All the stored information is end- to- end encrypted which helps to prevent fraud and any unauthorized activity.

Blockchain technology addresses privacy issues like no other as it provides anonymity to personal data and only by getting permission can other users access it.

Want To Buy, Sell Or Invest In A Property?

If you want to buy, sell or invest in a property, you can book an appointment with a Dubai real estate agent who will help you in your earnest endeavors. They will use the latest technology to make the process hassle-free for you. Hurry up and call them now.