Application of Blockchain in Real Estate: Market Forecast and Rise Opportunities from 2025 to 2030

Blockchain smart contracts enable real estate companies to tokenize tangible assets like land. When these properties are tokenized, ownership transfer and proof of ownership become highly transparent and immutable. In other words, when Mr. A purchases a piece of land, he can seamlessly prove that he is the owner, as the record data is securely and verifiably stored on the blockchain.

Real estate assets on the Blockchain are tokenized—As the name suggests, tokenization is the process of converting equitable interests in real estate into tokens. Tokens are typically digital representations of value storage and the said equitable interests. Tokens are used to record, store, and verify ownership of assets.

Once real estate is “tokenized”, it can be easily exchanged, sold, and settled through blockchain real estate platforms. Real estate tokenization and using blockchain for transactions are faster, more secure, and do not require expensive third-party custodial services.

How Blockchain Technology is Changing Real Estate

Blockchain real estate applications can democratize the entire industry, making it accessible to anyone while facilitating faster and safer transactions in real estate.

1. Optimize online markets and platforms

Blockchain real estate applications allow more people to participate in the real estate industry without worrying about malicious transactions. Real estate technology has primarily focused on property sources and connecting buyers and sellers.
Nevertheless, the introduction of blockchain technology provides new methods for real estate transactions and enables transaction platforms and online markets to support real estate transactions more securely and comprehensively.

2. Exemption of intermediaries

Intermediary institutions, such as brokers, lawyers, and banks, have long been a part of the real estate ecosystem. However, the application of blockchain technology in real estate has brought about a transformation in their roles, taking on the functions of listing, payment, and legal documents, while eliminating intermediaries. As a result, both buyers and sellers can maximize their benefits, as they save on commissions and fees typically charged by intermediaries. Additionally, this process can be expedited by eliminating back-and-forth conflicts between intermediaries.

3. Accelerate the liquidity of real estate assets

Real estate has always been considered a non-liquid asset because it takes time to complete a sale. However, in the case of cryptocurrencies and tokens, they can theoretically be easily exchanged for fiat currency through exchanges. Therefore, the application of Blockchain in real estate allows assets to be traded at any time since digital tokens on the Blockchain represent property ownership. Owners and investors can easily cash out from their tokenized assets instead of waiting for a long time for a buyer who can afford to purchase the entire property before they can realize and gain value from it.

4. The ability to obtain partial ownership

The tokenization of real estate not only provides owners and investors with faster funding channels but also lowers the entry barriers for potential owners and investors. This is because, to acquire property, most businesses usually have to pay a large upfront payment. Real estate tokens also allow investors to pool their funds to purchase more expensive properties, without having to spend a significant amount on a single investment. Instead, buyers can have partial ownership.

5. Reduce costs

The transparency associated with decentralized networks can reduce the costs of real estate transactions. Any transaction executed through Blockchain does not require a custodian or payment of professional fees and commissions, such as inspection fees, registration fees, loan fees, and taxes related to real estate, thus lowering costs. If real estate platforms continue to automate Blockchain processes and make them a part of the system, costs can be effectively reduced or even eliminated.

6. Digital Identity

The combination of blockchain technology and digital identification eliminates the issues of physical identity verification and accelerates some pre-transaction processes, such as underwriting, financial assessment, and obtaining mortgage commitments.

Real estate companies using Blockchain technology

1. UBITQUITY

UBITQUITY is a blockchain-based SaaS (Software as a Service) platform for tracking data related to the entry and exit of any property. The platform’s consistent API is used to confirm the legitimacy of information related to ownership, ownership history, and transfer records using blockchain technology. This leverages the benefits of Blockchain while also enhancing transparency.

2. ATLANT

ATLANT has created a platform that uses Blockchain technology to make real estate and rental property transactions more convenient and easier. ATLANT allows for the tokenization of assets while essentially treating them as stocks, and then settles them through token sales (i.e., exchanging them for fiat currency with buyers), who in turn receive a certain proportion of shares in the property.

3. Propy Inc

Propy is a global real estate market based on Blockchain that uses smart contracts to execute international real estate transactions. The platform enables brokers, buyers, and sellers to leverage the functionalities and features of smart contracts to ensure better transactions and help expedite the real estate process.

4. PropertyClub

PropertyClub is another platform that utilizes Blockchain technology and smart contracts to enable users to conduct real estate transactions in a digital and secure manner. It uses cryptocurrencies such as Bitcoin or PCC (PropertyClub Coin), as well as the tokenization of real estate assets (through real estate-specific security tokens), to enhance the customer experience.

5. Harbor

Harbor is a blockchain real estate platform that allows private securities (such as real estate assets like property ownership) and land to be tokenized to improve market liquidity and transparency.

6. Alt estate (ALT)

Alt.Estate is a blockchain-based system for the tokenization of real estate and the exchange of tokenized real estate assets. It allows users to buy and sell tokenized real estate assets in a secure, fast, and seamless manner with lower transaction fees.

Some blockchain that supports real estate:

1. Bitcoin (BTC)

Using blockchain technology to facilitate crypto-to-crypto transactions has the potential to revolutionize the real estate market. Real estate transactions can be completed entirely with Bitcoin, without the need for currency conversion. Bitcoin in the real estate sector allows crypto investors to profit from cash flow.

2. Ethereum (ETH)

Ethereum clearly outperforms Bitcoin in purchasing real estate due to its faster transaction times and lower transaction fees. It also features smart contract capabilities, providing several new development opportunities for the real estate industry.

3. Algorand

Lofty AI can develop a highly scalable tokenized real estate market on the Algorand Blockchain, ensuring efficiency, accuracy, and transparency while providing low transaction costs. Algorand is primarily used to record ownership of real estate assets, asset-related data, loan transaction receipts, and important loan documents.

4. Cardano

The application of Cardano in the real estate industry allows buyers to purchase properties using Cardano tokens ($ADA).

Recently, real estate developer Prometheus International sold two luxury residences on Madeira Island, Portugal, for 4.1 million euros (equivalent to 4.7 million USD), with the buyer making the payment in Cardano (ADA).

Summary

The application of Blockchain technology in the real estate sector has made people aware of the benefits of fractional ownership investment opportunities, providing investors with the diversity they need in today’s turbulent business environment. Furthermore, Blockchain can significantly optimize the typical rate of real estate transactions, bypass traditional escrow processes, and provide additional security management for all parties involved.