It was the best and worst time when this innovative concept came to the fourth in recent years. It was the time of the COVID-19 pandemic when industries needed a technology uniquely suited to verify, secure, and share data. Blockchain was adopted from the previous, but the pandemic pushed through the adoption of the digital ledger. It is not just a mere technology that stores and secures databases; it is a breakthrough, a revolutionary deployment that increases trust, security, transparency, and traceability of the shared data across any business network.
Blockchain is highly welcomed in the OTC or Foreign Exchange markets. The worldwide market is where currencies from different countries are bought and sold. The OTC market has no physical place or the most significant financial market, with a daily turnover of over USD 2 trillion. Apart from this, the decentralized ledger is used in industries like law enforcement and security, software securities, real estate companies, travel and mobility, banking, and finance. As per the market data, this technology will grow at an 85.9 percent CAGR worldwide. It is the technology that is primarily utilized in cross-border payment and settlement. By 2026, the technology market will be worth $67.4 billion, and as per the data of Pwc' Trust for Report', Blockchain will increase the global GDP by $1.76 trillion by 2030.
Blockchain in the Real Estate Market for Millennials
Like the OTC market, the real estate market can be situated throughout the globe, maintaining different time zones 24 hours a day, maintaining a way when one market is closing, the other is operating. Though a specific market functions only during business hours, this sector can receive international payments, statements, or other things connected with international banking in the age of internationalization. This technology operates on decentralized transactions and records each transaction in a public ledger. Besides security and transaction control, it bestows property management operations, transparent data tracking, global asset distribution to millennial investors. The use of Blockchain in the real estate sector for millennial investors or developers is boundless.
As per the research of the Financial Market, the market of real estate will increase to Rs 65,000 crore by 2024 in India, and all the projects in the real estate sector will contribute 13% of the country's GDP by 2025. As per the survey, this technology is taking a baby step in this sector in India. Here, we will discuss the transformative potential of Blockchain in this sector or how it is proving that stakeholders' integration is the key to success.
The Significant Deeds of Blockchain : Benefits and Potential
The Distributed Ledger Enhances Security and Control over Transactions
Previously, real estate was believed to be a scammers' paradise. It is the report of the Business Email Comprise Scam that noticed a 2200% increase in monetary losses. The valuable technology enhances the security and transparency in the financial payment system. Apart from this, it eliminates the possibility of anything underhanded. A census mechanism must validate and agree upon All transactions with Blockchain. Property transaction doesn't involve any third parties. It reduced the risk of fraud.
This technology, or The Digital Ledger, Eliminates Paper works and Intermediaries
Till now, the real estate industry is impaired with extensive documentaries as well the involvement of several intermediaries. But the digital ledger shows the clear-cut data to the real estate market, the immutable proof that parties have the funds required for the transaction in rental and purchase scenarios. So, stakeholders need not to be immersed themselves in any paperwork. It also eliminates the intermediary in asset rights transfers, lowers asset exchange fees, and opens worldwide markets. This technology opens the business 24 hours a day, 365 days a year.
The Decentralized Ledger Provides Property Management Automation
Real estate developers can eliminate manual paperwork and requirements of using software paperwork. So, when you can use this technology to build your app, you automate your entire property management. That leads to cost reduction and time spent on administrative tasks.
As per MSCI FutureMarketinsight's data, in 2023, Blockchain Technology's market value was US$4.6 billion. The growth happens in three basics: short-term use for its operational efficiency like property management automation. Another two basics are mid-term that will follow.(2026-2029) and long-term basics (2029-2033).
It Gives Shared Ownership and Investment
Buying or leasing property undoubtedly requires a significant investment, and investors can buy their share of property through Blockchain. It enables the real estate sector to have fractional ownership, turning the heads of all real estate company owners.
As per the statement of Rahul Shah, VP-Equity Advisory, MOFSL, last year, the realty sector witnessed 43% growth, and most of the prominent real estate companies hold a steady focus in Bangalore. They will adopt the guidance of anything between 15%-24% of growth. Today, lots of investors are investing in properties in Bangalore located in Whitefield, Bellandur, or other top areas in Bangalore. Millennials worldwide are searching for apartment for rent in Whitefield, Bangalore and the market in Bangalore is playing exceptionally well in the real estate sector. Adopting Blockchain is beneficial in this sector for the coming year's growth.
It Bestows Transparent Data Tracking and Analysis
Blockchain makes all the data recorded or the history of the buildings readily available or transparent. It is suitable for future investment in any property. The reliability of it helps real estate investors to build trust among all stakeholders. As per the National Strategy of Blockchain data, the decentralized ledger will be utilized as a foundational technology for the 30% of the global customer base by 2030. This feature of this technology is beneficial for every user industry, including the real estate industry.
Blockchain helps in Global Asset Distribution
This technology allows the creation of a universal system of buying and selling properties. Smart contracts: The important Blockchain feature enables property owners to automate all sales transactions and confirm their validity in real-time. All the sales transactions in the Blockchain are processed instantly.
The one challenge to adopt Blockchain was the required infrastructure for its seamless benefits. But Currently, the United States is leading in digital leverage. The market size of Blockchain in India is likely to record CAGR of 47.3 per cent, it will increase from $0.28 billion in 2019 to reach $4.3 billion by 2025. It is not only for currency derivatives, international trade, and capital flows. It is equally valid for the real estate sector, too. As per its current position, As of now, the digital ledger is in the condition of state-of-ball rolling in both national and global markets. All stakeholders, real estate investors, and developers need to come together and align themselves to discover the full potential of this technology. However, if we predict the future, Blockchain is undoubtedly an integral part of the future of real estate.