BrickVest: Blockchain to boost real estate industry
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BrickVest: Blockchain to boost real estate industry 29 November 2016London Reporter: Stephanie Palmer
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Institutional property investors can see a future for blockchain in the real estate investment industry, according to a survey by BrickVest.
More than half, 56 percent, of investors surveyed said they think the industry will adopt blockchain technology for property transactions, and 31 percent said they believe it will become common practice.
However, although 44 percent said they are familiar with the technology, only 2 percent said they are ‘very familiar’ with it.
According to BrickVest, respondents suggested that the most important benefit blockchain will have on the real estate sector will be the ability to speed up the process of buying and selling properties, allowing smart contracts to be exchanged automatically.
Other potential benefits included reducing transaction costs by disintermediating financial ‘gatekeepers’; reducing risk of fraud through the ability to track transaction history; increased transparency; and encouraging growth in the secondary market by allowing smaller investment and volumes to be traded.
Emmanuel Lumineau, CEO of BrickVest, commented: “Property investors are becoming more familiar with blockchain and many can see the transformational power it will have on the sector by simplifying, de-risking and lowering the cost of buying and selling assets.”
“Blockchain is capable of turning the entire financial system on its head as transactions can now be directly exchanged in a transparent, cost-effective and secure way between two parties. Given the speed of technological change and increased pressure from investors for greater transparency and reduced costs, it’s likely that blockchain will be adopted earlier than many investors think.”
“Blockchain technology has already made the online investment market more fluid whilst acting as an interesting tool for the secondary market, enabling smaller investments and trade volumes. These smaller investments were not possible before due to the cost of the middle man.”
For the research, BrickVest surveyed 101 property investors in November 2016.
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