Go through your future apartment in VR space, buy an island for bitcoins, or arrange a loan on the blockchain… None of this sounds as absurd as it did 10 years ago, does it?
The world has changed forever
The world will never be the same after the advent of distributed ledger technology (DLT). Even the real estate market, which has been considered relatively stable and unchanging, has been changed.
While the real estate agents surf job search sites in a panic, cursing the 21st-century blessings which can take away their earnings, we’ll remember how a light touch of global technology code was able to start the engine of change.
The first real estate deal transacted in cryptocurrency was concluded in Israel in 2012: the villa in question was sold for 5000 BTC. And now apartments, houses, and even castles go to the other users of digital assets all over the world. It is unlikely that the happy buyers and sellers realize the part they could play in the popularity of the blockchain.
This technology is indeed capable of facilitating many processes.
Advantages of introduction the blockchain into the real estate market
For example, with the introduction of working solutions, you can safely say goodbye to intermediaries! No more notaries, realtors, lawyers, and representatives of state services. This means savings (that 2% of the transaction is better spent on new furniture than on commission). The reduction in fraudulent schemes and the time required to issue various certificates and documents are advantages of blockchain implementation as well.
According to statistics provided by the FBI, in the period from 2015 to 2018 in the US real estate market the number of fraud cases increased 120 times!
Maybe the Industrial Revolution 4.0, headed by the blockchain, will correct such unremitting indicators in the right direction? It is no secret that blockchain platforms will be able to protect us from fake documents, so why not use them in the buying or selling real estate process?Moreover, decentralized systems will simplify the time-consuming inspections of facilities before selling. And as a nice bonus, users have access to their objects (for example, at the registration or even construction stages) online.
Deloitte experts have suggested that the wait will not be long, as the blockchain is on the CEO agenda of almost every real estate company.
Virtual tour of your future housing
Considering high-tech solutions in the real estate field, we cannot lose sight of the breakthrough leaps being made in VR projects.
And everyone wins here: the buyer can find himself in a virtual building, which is currently only exists as drawings, and the seller gets a powerful sales tool. And if we drop even deeper, then in a few years we will be able to select the color of the wallpaper in the VR space of a new apartment, sitting in our old one.
Decentralized solution architectures based on the blockchain will help the development of VR and AR technologies without the intervention of centralized organizations or scammers.
Technological illiteracy and non-acceptance
However, there are also obstacles in the way of this engine of the future. The transparency that the blockchain industry prides itself for real remains a problem for the real estate market. More precisely, it’s leading to outright rejection. At this development stage, few large representatives of this business have accepted that they will have to share their confidential data with other parties of the process in a safe and trustworthy way. Another stop before the massive jump is the fact that most real estate developers and realtors have not yet been able to adapt to the technologies of even the previous generation.
But the ice is broken and this is good news. In the VR market, companies are already offering interactive showroom creation as a service. Moreover, there are also individual companies that develop VR solutions specifically for real estate.
Our hopes, as well as the general expectations, are enormous. Many are already seeing the world without physical workflow and bureaucratic costs, where the blockchain will improve the ways of service and become the main driver for their industry’s transformation.
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