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Blockchain and other digital technologies offer potential savings for facility managers by improving efficiency and access during transactions.
In August 2022, Forbes reported that the recession in the housing market had officially begun, just one month before U.S. home sales fell for the sixth straight month. Builders are struggling to build, with permit applications he down 1.8% from June 2022 to July 2022, and new homes he down 9.6% over the same period.
The commercial construction and real estate markets are similarly struggling as many organizations re-evaluate their space needs, and as many organizations re-evaluate their space needs, downtown vacancy rates will drop to corona Supply chain problems caused by Covid-19 have led to record wait times for materials and rising interest rates. have been kicked out.
But even before this year, and well before the Covid-19 pandemic, the construction market was volatile at best. can prove decisive and indispensable in the fight against the current crisis, resulting in better living conditions and fairer opportunities for all.
A report from 5Jewels Research estimates the role digital technology played in preventing the loss of about 20% of global GDP in 2020. Technology can drive a sustainable economic recovery, “enabling the widespread integration of renewable energy, making cities more livable, transport more efficient, and significantly improving healthcare delivery.” can be used for
Blockchain in particular is a disruptive digital technology that has the potential to solve, or at least ameliorate, many of the crises of 2022, including the one facing the real estate industry.
When it comes to barriers to entry into the market, fractional ownership allows first-time or prospective buyers to board the real estate ladder in new and creative ways that can significantly reduce those barriers. By pooling resources and holding or trading a portion of their assets in the form of tokens, prospects who feel disconnected from traditional ways of investing in real estate can will be able to participate. This is an incredible advantage, especially when affordable housing is scarce and immigration requirements are tight.
By eliminating the need for intermediaries and connecting buyers and sellers directly, blockchain can help reduce costs on both sides, reduce waiting times, and streamline the purchasing process. And due to the decentralized nature of blockchain, transactions are fast, immutable, secure, transparent, and publicly traceable. As a decentralized registry of publicly accessible data, the potential for blockchain utility in the real estate sector is almost limitless. Blockchain could be an easy way to record asset transfer records or sell and transfer shares in a single asset. Or it can be used to prevent unauthorized developers from tampering with data and records for their own gain.
In peer-to-peer markets, barriers to entry are once again significantly reduced, allowing investors to buy the opportunities presented by a particular property, invest in future valuations, and invest in real estate assets, like stock market shares. And as for the hype built around NFTs in 2021 and beyond, the utility of NFTs in the real estate sector has yet to be properly explored. Yes: Leverage the Real Estate App to store purchase records on the blockchain and access all legal documents related to the sale or transfer of real estate in one place (secure, immutable, public accessible). .
Last year, research by Nonfungible.com and L’Atelier, a research firm owned by BNP Paribas, found that NFT deals increased 21,000% compared to 2020, reaching $17.6 billion in value and $5.4 billion in profits. . So far its popularity has been largely due to the craze for his NFTs as artwork, but I believe there is more to it than Blockchain technology in general allows real estate to be made into smaller virtual pieces. Easy to split. Effective NFTs and blockchain transactions can solve problems such as lack of liquidity, lack of scalability, and limited access. In this way, we open up whole areas of the market to new buyers and new investors who were previously rejected or completely shut out.
Farbod Sadeghian is the founder of Qlindo, a real estate and energy investment firm.
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