We introduced the development and Prospect of real estate technology (1.0 and 2.0) in the last article. Next, we will introduce the development and Prospect of real estate technology 3.0.
Proptech3.0: Blockchain Era
Technology will evolve real estate industry rather than end, which is the charm of science and technology. The chapter 3.0 is exactly the stage we are in. This is a new stage, which is coming not means that the end of Proptech 1.0 andProptech 2.0. At least not today, they are still constantly self-renewal and improvement.
The data age of proptech 3.0 can also be called the Blockchain Era. In a report of “blockchain and commercial real estate” released by Deloitte Touche Tohmatsu, after in-depth analysis of the application of blockchain in commercial real estate transactions, it pointed that blockchain technology has great potential in real esate industry, which can improve the transparency and efficiency of commercial real estate and save costs by eliminating many defects in the existing key processes.
Improve the search process of real estate sales
Real estate buyers and sellers or intermediary agencies usually match in the trading platform through location, rent, house price or some characteristics, and then the platform charges some fees to users. However, due to the lack of unified process and data standards, the subjectivity of the platform is strong, which will lead to information outdated, incomplete, inaccurate etc. Blockchain technology can improve the efficiency and credit in this process. Blockchain can record the location, address, rental rate, house price, previous landlords and tenants in detail, so that market participants can get more reliable data at a lower cost.
Reduce transaction cost before investigation
In the process of housing, a lot of time and energy are usually consumed to do financial, environmental, legal and other due diligence to assess the rent and price. Blockchain can improve the efficiency and accuracy of this process. The participants of commercial real estate can develop digital identity for property, and add the information and some characteristics of market participants into the digital identity. With the characteristics of blockchain technology, these records will not be tampered with. This process can simplify financial, legal and other information, and shorten the due diligence process.
Optimize asset management after the transaction.
Because of the dependence among the owner, the tenant, the property and the suppliers, it is a rather complicated work to manage the property of the real estate developers. Since the signing of the contract, there have been payments and service transactions, which need to be executed, tracked and recorded. Blockchain can make the management of property and cash easier, transparent and effective in the form of “smart contract”. If the smart lease contract is used on the blockchain platform, the lease term and transaction can be transparent, and the contract can automatically pay the rent to the homeowner, property and other stakeholders.
Help developers make accurate decisions.
The “information asymmetry” of the industry is not only reflected in the individual traders, but also in the commercial real estate institutions. Valuable information is scattered in different nodes in isolation, which leads to data redundancy, repetition and opacity. The decision-making of managers is based on such relatively one-sided, static data, rather than more accurate dynamic data. Blockchain technology can link these data and improve the quality of decision-making and analysis. Connect the real estate company with other participants in the lease transaction to provide a shared database for all interested parties. This will improve data quality and make data easier to record and retrieve.
Achieve more efficient financing and payment processing.
Slow, expensive and opaque financing have plagued property developers for a long time, especially in cross-border transactions. In which foreign exchange charges and the participation of multiple intermediaries usually increase payment delivery time and transaction costs. Blockchain can include detailed information, transaction cost, exchange rate and transaction time of the buyer and the seller in the smart contract. The transaction between the two parties is completed through the network, so the settlement process can be more seamless. Verify the availability of funds by password and promote the synchronous transfer of funds to improve the robustness of the process. In this way, settlement risk and payment delay can be minimized. At the same time, in the transaction process, it is possible to realize “decentralization” based on blockchain technology, allowing investors to purchase and sell shares, debts, real estate, metals and artworks and other assets in the form of “scores”. It may become a reality to invest in real estate in “one square meter” or smaller measurement units in the future.
The above is the introduction of Proptech 3.0. If you have any comments on our article, please contact us at firstname.lastname@example.org