The digitalization of the real estate industry is still in its infancy — Blockchain study
31. Januar 2019
Inacta AG recently conducted a research study for a customer on real estate blockchain startups.
By the end of 2018 more than 200 blockchain startups were screened globally. 100 were then analyzed in more detail to identify market trends for the real estate industry.
«StartUps that go alone are less likely to succeed than those that create consortiums with existing industry players. Any innovation involving real estate and blockchain must deal with the current players and regulations.»
We would like to share some of the key insights from this study:
- Today’s real estate industry is intransparent and inefficient. Manual processes are widely spread and information is often spread across multiple organizations, systems and archives. In tomorrow’s world all actors transact in a seamless and digital way. Digitized and tokenized buildings allow more flexible, effective & efficient usage of spaces.
- Most of the projects and companies target solution proposals for investing and trading (51%), followed by solutions for managing properties (23%). There is a clear lack of solutions in the development, construction and business information modelling.
- Macro trends in blockchain & real estate concern tokenization & new ownership concepts through smart contracts, ecosystems which enable cross industry integration and digital, decentralized marketplaces which democratize accessibility to real estate
- The digitization of properties with blockchain-based tokens and their availability on global 24/7 markets, will drastically increase liquidity of these assets and their ownership structures. Ownership and transaction of real estate will be highly fluid and requires new infrastructure and skills from the real estate players.
- Real estate transaction management will be revolutionized through more decentralized, distributed marketplaces. Market places will enable direct and global selling and buying of real estate property, reducing time, complexity and costs. They will provide frictionless transactions beyond national borders.
- Stable tokens are a key R&D topic globally and a crucial factor to successful financing solutions. For example, a rental deposit account based on a smart contract needs to have a stable value and can’t be exposed to fluctuations.
- Blockchain startups, established players and regulators need to come together to develop innovative solutions. Consortia and ecosystems are crucial to effectively implement disruptive ideas.
Blockchain technology can fundamentally improve transparency and efficiency within the real estate industry. However, the digitalization of the real estate industry is still in its infancy. The first promising solutions for specific problems are appearing on the market at the time of writing.
Want to stay in the loop regarding the next generation of the real estate markets? Get in contact with the Inacta experts, follow the CV Competition for Real Estate and visit us at CV Summit with the Top 3 Final Pitches on March 27 in Zug, Switzerland!
Article on: Medium