The real estate market is extremely specific. We are not even talking about the subject of bidding or customers' desires. We mean the technical side of the business. Bringing technological innovation into such an environment takes work. But although not without challenges, little by little, innovation is beginning to penetrate the sphere of real estate sales. Today we will look at how to use blockchain in real estate sales!

Current Statistic of Real Estate

The real estate market is specific. It varies and depends on many factors. The IT segment is far from a decisive role in shaping prices and trends, although, as we have noticed, it easily adapts to them. Let's look at the current state of affairs and the possible future in more detail!

Rising property prices will only increase

Unfortunately, even today, buying your own home is already a prohibitive cost for many people. The price increase is due to the rise in buyers, expensive land, materials, and infrastructure. So naturally, this also affects the needs and conditions of doing business for each market participant.

We are confident that a new construction boom won’t begin soon, but a significant decline is not expected either - at the beginning of 2023, the number of houses built by builders increased by 14% compared to 2021. If we distance ourselves from future buildings, then according to the examples of past years (and now growth remains at the level of 10-15%), we will see the following picture:

The median house price in the US increased by 14% from 2020 to 2021 when the price averaged about $363,300 - National Association of Realtors.

Rising risk of fraud

Smart contracts, which allow you to create convenient, practical arrangements, have begun to be noted in fraud and scandals. We insist that the technology itself will make the business flexible and reliable - but there is also a risk that Blockchain technology (which makes it impossible to delete information from databases) will not be used in "dark" areas. Unfortunately, cases of using this encoding algorithm have begun to occur more often than before, which will likely hurt the technology's reputation.

Increasing the price of materials

Since we noted this issue earlier, let's be brief. More than 80% of construction companies have experienced an increase in prices for building materials over the past year. This is due to many events, we will not list them, but the fact remains that today it costs more to build something because of the price of components.

Buyers are getting younger

A strange trend indicates a decrease in the average age of clients of agencies for the purchase and sale of real estate. It has to do with the improvement in the financial condition of young people and the growth in production rates. Although this will not lead to lower prices, we see a need for business interactivity.

We have considered the main factors of the market and its state, so it's time to move on to the topic of our story. In advance, Blockchain technology needs to be integrated into the work of cryptocurrencies. Simply put, the coding algorithm allows you to protect data, manage databases more efficiently and create smart contracts. Of course, the integration of tokens and other crypto-units is optional.

Why you should add Blockchain to Real Estate

The sphere of building and selling houses has always been characterized by dualism - it could simultaneously keep up with technology and simultaneously not pay attention to modern trends. Let’s consider Blockchain's possibilities in the real estate field in more detail!

Simplified search

What does interest a potential buyer of real estate? Naturally, the characteristics of the building and the price. Unfortunately, home search sites rarely use a convenient and efficient search system today. As a result, incidents often occur when the buyer is surprised at the state of the purchased property (primarily in the documentation) or has trouble finding it. To simplify the work of brokers and solve the information's reliability problem, you can enter an encoding.

Integrating the Blockchain algorithm will change the state of affairs, making it possible to conveniently send data over the p2p network. This will give brokers more comprehensive access to information, which, for example, will increase the need for an intermediary and add "exclusivity." The ability to share reliable data is one of the must-have features.

Improved early purchase checkout

The process of buying/selling real estate is accompanied by tons of "paperwork." So you need to check all the contracts, process a lot of permits, get a lot of edits, and, of course, pay all taxes. It takes a lot of time. Many stages of this process have long been transferred to the digital environment - but there is always a risk that the files may be damaged or someone accidentally "spoils" them.

To avoid losing the results of hard work, you can use Blockchain. A distinctive feature of this particular algorithm is the ability to encode any data. So the realtor will be able to get rid of fears for the data - after all, only a limited number of people will have access, and the chance to "damage" the files will rapidly drop to 0.

Increasing the benefits of smart contracts

We have already said earlier that one of the features of Blockchain is the ability to enter into smart contracts. We also mentioned the risks of fraud. But in practice, there are few chances to meet scammers, and a business needs a toolkit that expands both the possibilities of contracts and allows you to detail the terms of the transaction.

Let's look at the possibilities of smart contracts in more detail:
• Transactions can be conveniently segmented
• You can set up automatic payment
• Smart contracts can automatically charge penalties, for example, for late payments.
Using smart contracts will also relieve you of the need to constantly check the integrity of files and other associated problems.

Increasing the "transparency" of transactions

One of the most popular myths about Blockchain is based on the statement: "encoded data is used exclusively in dark schemes." We hasten to dissuade you. Blockchain, on the contrary, allows you to structure data, and given that only a limited circle of people will have access to it, you can use it to pay taxes and conclude contracts. Let's say right away - no, it will not work to manipulate taxes with the help of Blockchain. The encoding algorithm and specific systems built on it are not criminal or "semi-legal."

And speaking of increased transparency. Due to the specifics of data placement (often in the cloud), all parties involved in the contract have access to files that cannot be deleted or changed. Get rid of intermediaries

No matter how rude it sounds, sometimes intermediaries become a severe business problem. You can quickly perform many jobs using Blockchain technologies, thereby reducing the cost of third-party services. We are talking about intermediaries like:

Realtors
Attorneys
Appraisers

Most of the work of the above workers can be done using Blockchain and smart contracts. Naturally, this will require the creation of technical specialists, accountants, economists, and others. It should be noted that we by no means offer the algorithm as a panacea for all adversities - there are still a lot of processes that can be performed only with the participation of one (or all) of the above.

Now that we have finished with the formalities, it's time to move on to the main topic of our story - startups!

TOP 6 Blockchain Startups in Real Estate

Our TOP is compiled instead as a list of exciting and most promising startups. This rating does not encourage you to pay attention to some and ignore others. We encourage you to take a look at each one. Without further ado, let's get started!

#6 Blocksquare

Our list opens with an innovative platform allowing you to introduce tokens into real estate sales. Blocksquare was founded in 2017 and has attracted several clients over the years of successful work. The startup's feature was the legal use of crypto-currencies in investing.
The company has set itself the goal of tokenization of the market, which has already borne fruit, and you have the opportunity to invest a small amount (thanks to smart contracts) in cryptocurrency. Although cryptocurrencies will still change in the future, it is already worth introducing elements of crypto exchanges through the type of decentralization of assets.

#5 Harbor

From the investment platform, let's move on to the security sector. Due to the tokenization of the site, problems with "ownership" may arise. Actually, these things could be improved with the purchase/sale. Here the question is much more specific.
The Harbor system will allow you to track changes in property status. This is not spying on tenants. This is a check and a precautionary measure - that accredited brokers do not resell the property to non-accredited ones.

Harbor is a universal system that can be integrated into a ready-made security system, which will significantly increase the security of databases. It can be run either directly by installing it on the system or in the cloud.

#4 Ubitquity

The Blockchain real estate management platform is fourth in our impromptu top! Ubitquity uses DLT (registry allocation) technology and smart contracts.

The system's task is to simplify the transfer of documents, invoices, and other data. However, we have repeatedly discussed the risk of damaging or changing the file. Ubitquity will allow you to avoid such excesses. In addition, Ubitquity provides tools to increase the transparency of transactions.

But the system is used not only in the transfer of documents - but it also allows you to establish supply chains and, in general, contributes to the automation of your business.

#3 SafeWare

Another security system is on our list. But unlike Harbor, SafeWare is primarily about secure data transfer between users. It uses the Blockchain network, which saves money and time while facilitating transactions between you and the client. Naturally, everything works according to principles similar to many Blockchain systems.

It is especially relevant to use in light of the transition of many real estate agencies to digital format. But, of course, the threat of hacking or data corruption is still relevant, and Blockchain is famous for its security and ease of use. But we have talked about this many times before.

#2 Manage Go

The silver medalist of our TOP is a system that makes life easier for landlords and just property owners. ManageGo uses Blockchain algorithms and is a counter. In practice, the system becomes an analog of an intelligent house, thanks to which residents can pay fees and quickly order various home maintenance services. Also, tenants receive notifications in case of changes in the rules of the lease.

In turn, ManageGo offers simple business management for landlords - the system tracks incoming payments, checks documents during the lease, pays taxes, etc. So if you require simple and efficient property management, we recommend paying attention!

#1 Real IT

The first place is occupied by one of the most attractive systems in the real estate field. This is not an account management system or simplified paperwork. Instead, RealIT is a platform designed for investment. It allows you to wisely invest in real estate in the United States and promotes business development.

RealIT uses cryptocurrencies as the primary unit of investment. This is one of the first platforms focused explicitly on the crypto segment. The platform is different:

Low commissions

Security of transactions

Convenient interface

Innovative approach

Concluding the TOP, we have cited far from all innovative or simply promising startups as an example. Many remained unlit, but this does not mean they are poor quality. Now let's discuss how to integrate Blockchain-based systems into your business.

What Should You Know About Blockchain Integration?

Blockchain integration is a complex process requiring your time, money, and idea. It may sound a little harsh - but you must ensure that you need the above systems to achieve more tremendous success. In simple words, expediency is required.

 No matter how strange it may seem, everything that partially uses architecture, ideas, information coding systems, etc., has become popular today. But only some companies have implemented ready-made projects and ideas and have yet to receive a significant customer increase. Therefore, it is essential to integrate exactly what you need. To do this, it is enough to analyze your company, your customers, and the market niche. This is the first thing you should remember - expediency.

The second element is hiring experienced developers. It doesn't matter how exactly the Blockchain integration process will take place. It can be offshore outsourcing software development, or it will make an in-house developer team. However, you must trust the technical co-founder or CTO. Pay attention to the company’s reputation and portfolio. Access to your resource may fall to scammers or simply unscrupulous people.

The third and final element we will call caution. Remember that it is a volatile asset no matter how much publicity cryptocurrencies receive. Try to create a system that will allow you to make payments in crypto, but at the same time, do everything there is no collapse
in the event of a sharp rise or fall in the price of conditional Ethereum.