By improving efficiencies and access during transactions, blockchain and other digital technologies offer savings potential for facility managers.
In August 2022, Forbes magazine reported that The housing market recession has officially begun Just a month ago, when the decline in US home sales marked the sixth month in a row. Builders struggle to build, with Permit applications fell 1.8 percent From June to July 2022 andNew properties under construction decreased by 9.6% in the same period.
The commercial construction and real estate market is also suffering, with vacancies continuing to rise in the city center after the spread of the Corona virus, as many institutions reassess their space needs.. Materials still have record waiting times due to supply chain issues caused by Covid-19, and rising prices Benefit Up and coming buyers and potential buyers are again effectively expelled from the real estate market.
But even before this year, before the COVID-19 pandemic, the construction market was precarious at best. The data tells the story of a grim prospect, but innovative technology will be able to prove crucial and indispensable in fighting the crisis we face, leading to better living conditions and fairer opportunities for all.
a 5 Jewels Research Report It is estimated the role that digital technologies played in preventing the elimination of about 20 percent of global GDP in 2020. This represents a total savings of $17 trillion for the global economy, and it tells us something worth highlighting: technology It can lead a sustainable economic recoveryand can be harnessed “to enable the large-scale integration of renewable energy, make cities more livable, make transportation more efficient and dramatically improve health care delivery.”
Blockchain, in particular, is a disruptive digital technology that has the potential to help solve – or at least improve – many of the crises of 2022, including the one facing the real estate space.
Speaking of barriers to entering the market, they can be decisively reduced by first-time buyers or potential buyers who take advantage of fractional ownership to get up the real estate ladder in new and innovative ways. Pooling resources and owning or trading part of the property in the form of tokens, allows potential buyers who feel deprived of traditional forms of real estate investment, to participate within their means, within their means. This is an incredible advantage, especially when it comes to the lack of affordable housing and prohibitive entry requirements.
By eliminating the need for an intermediary and directly connecting buyers and sellers, the blockchain helps both parties reduce costs, reduce wait times and simplify the purchasing process. By virtue of the decentralized nature of the blockchain, transactions are fast, immutable, secure, transparent and publicly traceable. Being a decentralized registry of publicly accessible data, the possibilities of a blockchain tool in real estate are nearly endless. Blockchain can record ownership transfer records, or it could be an easy way to sell and transfer a single ownership share. Or, again, it can be used to prevent fraudulent developers from falsifying data and records for their own gain.
In a peer-to-peer market, entry barriers are again reduced dramatically so that investors can buy into the opportunities offered by a particular property, invest in their future appreciation, and begin to think about real estate assets much in a similar way to those of stocks in the stock market. And when it comes to The hype we’ve seen build around NFTs in 2021 and beyondIts usefulness in real estate has not yet been properly explored. But it could prove another big advantage: its application in real estate can be leveraged to store purchase records on the blockchain, providing access to every legal document related to a sale or transfer of ownership in one place (secure, immutable and publicly available).
Last year, according to Study by Nonfungible.com and research firm L’Atelier, owned by BNP Paribas, NFT trading grew 21,000 percent compared to 2020, with $17.6 billion in total transactions and gross profit of $5.4 billion. So far, its popularity has mostly been attributed to the NFT-as-arts craze, but I think it won’t stop there. In general, blockchain technology allows real estate to be easily divided into smaller virtual parts; And with effective NFTs and their trading on the blockchain, problems such as lack of liquidity, lack of scalability and access restrictions can be resolved. In this way, we will open up entire areas of the market to new buyers and new investors who have previously been rejected or completely excluded.
Farbod Sadeghian is the founder of Qlindo, a real estate and energy investment company.
#Blockchain #Improve #Real #Estate #Transactions