The Benefits of Digitizing Real Estate

In 2018, a $30 million property in Manhattan was ‘tokenized’ on the Ethereum blockchain. It was a clear sign of things to come — the revolution of digitizing real estate. The concept encompasses the digitalization of asset management, marketing, sales, and documentation to create a smart home. In the near future, tech will almost certainly boost the rate of real estate expansion. Because the benefits, quite frankly, are obvious.

In real estate, the land is such a valuable commodity, accounting for a significant portion of the cost of any transaction. Until recently, just a few nations had an electronic public register of real estate. Digitalizing real estate is an essential need that will help in bringing more transparency, credibility, and authenticity to the industry.

The real estate industry is frantic, competitive, and challenging. Property developers and real estate development businesses must stay on top of how new purchasers are leveraging the technology available for property research. As the number of digital platforms and consumers grows, real estate developers must create and implement a comprehensive digital marketing strategy to build an online presence.

Vast amounts of signed papers are used in the real estate market. Due to regulatory requirements that real estate agents must follow, many of these records must be preserved for several years at a time. As a result, there is a high chance of human error, leading to papers being misfiled or lost. It is a resource-intensive process to show the property paper, stay organized, obtain documents on time, and ensure you have all the necessary paperwork. Digitizing real estate seems to be the obviously beneficial choice for companies, agents, owners, and investors.

Making Real Estate Trustless, Inexpensive, and Quick

Imagine putting a blockchain on the entire process — enabling immutable data that can be shared and trusted by all stakeholders in a cost-effective way.

Real estate companies and authorities can save time, increase productivity, and increase workspace space by digitizing — or tokenizing — signature cards, loan agreements, leases, real estate disclosure forms, contracts, assignment of liens, affidavits, work-orders, notices, purchase agreements, financials, along with move–in and move–out documentation and invoices.

Real Estate agents handle hundreds of papers containing personal information. Thus their data must be encrypted and maintained in a safe, backed-up architecture. By removing their reliance on paper documents and manual procedures, real estate agents may enhance productivity, speed up transactions, reduce errors, and conclude deals faster in a paperless workplace.

Many seasoned investors are already investing in digitizing real estate because it provides consistent, recession-proof revenue flow. Internet businesses are the most critical driving markets in Silicon Valley.

The trend is similar in the entire digital sense. Investors today purchase a digital asset as they understand that the value of the asset will rise over time. Digital real estate is growing in popularity due to precisely this recognition of the metaverse from the market.

Aqar Chain

A leading platform in this space is Aqar Chain, which helps you invest in real estate digitally. To capitalize on these possibilities in the blockchain era, Aqar Chain is developing a real estate investing platform. This new platform will provide direct access to a new and profitable asset class for investors to add to their portfolios.

Advantages of Digitizing Real Estate

  • Land purchase can be sped up with digitization and tokenization, making it easier for the government to work on smart cities or plan better for industrialization.
  • Digitizing real estate will provide accurate information about a property’s owner. On a blockchain, it will be beyond simple to obtain information on the property and check on its authenticity.
  • Before purchasing a block of land, digitizing real estate will enable the buyer to verify transparent market-based pricing.
  • Buyers may share documents with lenders when the property is settled, digital due diligence has been completed, and a mortgage can be arranged. Payments may be sent to the seller using digital signatures, and the property can be registered in the buyer’s name. This will make the transaction more secure.
  • Companies can generate brand awareness, identify target markets, understand their demand, and be cost-efficient.
  • And of course, digitizing real estate will help in eliminating third-party interference.

What is Hindering Real Estate Digitalization?

Investors will not utilize digital channels unless cybersecurity cannot be reasonably assured. The real estate industry must adopt digital security before it can fully embrace digitalization. Protection can be provided by relying on competent cloud tools, insurance, and by using due diligence.

Of course, this means real estate and artificial intelligence will go hand in hand. By analyzing data, AI can help real estate professionals track data like never before. As a consequence, more informed judgments are made than a human could make. AI algorithms are already being used by investors to gain insights into real estate market patterns and to enhance marketing, finance, and other processes. All this demands access to a large amount of data, and hence it can be a cause for privacy issues. Thus, our need for security.

Real estate developers can efficiently and effectively satisfy the expanding expectations of clients and the necessity to handle many projects across cities. Several industries will gain from digitization since it will revolutionize their critical processes and systems. Already, people are shifting away from traditional methods and toward digital technologies such as blockchains and tokenization. Digitalization will make the real estate sector more accessible, transparent and safe for investors.

Aqar Chain can help you be a part of the global network and connect with various other investors to broaden your portfolio.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
IBC Group News

We are here to serve you with the most interesting and useful articles.