When blockchain meets real estate

Phil Siarri

Sr Advisor - Innovation Research at Konttent.com

Views 546

When blockchain meets real estate

12.09.2017 06:45 am

Nowadays blockchain and cryptocurrencies are all over the place. Even mainstream personalities such as Floyd Mayweather and rapper The Game are promoting ICOs. It was just a matter of time before such technologies entered the real estate realm. Historically, real estate is a fairly conservative environment in most jurisdictions; however several organisations are trying to shake things up.

Buying property in Bitcoin

The Knox Group of Companies which is headquartered in the Isle of Man, announced last Tuesday it will launch a residential and commercial property development in Dubai valued at £250 million, with residences that can be purchased in Bitcoin.

Studio apartments will start from 33 bitcoin, one-bedroom apartments will go for about 54 bitcoins; two-bedrooms can be bought for 80 bitcoins.

Knox’ leadership stated that allowing prospective buyers to use cryptocurrencies as a means of payment makes sense because: “This a great opportunity for the crypto-currency community to offload some of its significant gains, especially the early adopters, and actually deploy them in hard-core assets”. The project is expected to be completed by 2019.

Paying the rent (again with Bitcoin)

A London property developer, The Collective, is now allowing its tenants to pay their deposits in bitcoin. This will make it the first time the cryptocurrency is accepted as payment in the UK residential market.

By year end, The Collective will also accept rent payments in the cryptocurrency. The company’s management stated it has many international customers who fancy newer forms of payment and it just made sense to give them more options.

Blockchain-powered land registry

Since June 2016, Sweden’s land registry authority (Lantmäteriet) has been testing a way to record property transactions on a private blockchain. According to consulting firm Kairos Future (which is involved in the project), the initiative could save the Swedish taxpayer over €100 million (£91 million) a year by eliminating paperwork, lessen fraud, and accelerating transactions. This smart contract framework has the land authority and others, such as banks, holding copies of the records. When a land title changes hands, each step of the process is verified and recorded on the blockchain.

A similar initiative is currently underway in Brazil. Startup Ubitquity is working on modernising the land registrar offices of the Pelotas and Morro Redondo municipalities by embedding land ownership information into the Bitcoin blockchain.

One can expect further blockchain disruption in real estate markets in the months and years to come. As cryptocurrencies and blockchain-related technologies enter the mainstream, other organizations will follow suit.

Latest blogs

Ed Molyneux FreeAgent

MTD To Coincide With Brexit Leave Date

Making Tax Digital is going to be one of the biggest changes made to the UK tax system in history. Due to the ambitious scale of the policy, it can’t be rushed.  Read more »

Sophia Brooke SoftwareMill

Top 5 Critical Issues for Testing Mobile Banking Apps

The number of smartphones users worldwide is expected to grow from 1.8 billion in 2015 to an estimated 2.87 billion users in 2020 according to Statista. In the meantime, the number of people who have a bank account is expected to rise only by 700 Read more »

Koen Pelgrims Atos

Open Banking: the Landscape by 2025

Open Banking is here. The Second Payment Services Directive (PSD2) now requires banks to give any third party access to use payments data and launch transactions from a customer’s bank account, subject to permission. It’s a radical idea; and while Read more »

Breana Patel Bonova Advisory

How Important is Enterprise Risk Management?

Enterprise Risk Management.  Arguably the largest evolutionary change in risk management for financial institutions has been the elevation of the risk management function to a key role in firm management. Risk is truly an overriding firmwide concern Read more »

Marina Avseeva Investment Holding

European Fintech Buzzing with VC Investment

Keeping up to speed with trends in technology takes time and effort, especially when it comes to financial technology or fintech as it is commonly referred to as. Money is streaming in to fintech, and everything from how we bank to how we make Read more »

Related Blogs

Chris Skinner The Financial Services Club

9 out of 10 Blockchain Trials Go Nowhere

I just read an interesting new report from Deloitte about blockchain. They tracked the history of 86,034 blockchain projects hosted on GitHub since 2009 to pull out “key lessons” on where the blockchain industry is going and its long-term prospects Read more »

Claus Christensen KYC

The challenge of fulfilling Know Your Customer checks using blockchain

The advent of blockchain heralds the biggest change in banking for 400 years. Banks were originally established to lend and safely hold money and to act as a central point of authority with the banking ledger being the absolute record of truth held Read more »

Rob Yeates Gresham Technologies

The State of Blockchain in 2018

If 2017 was all about proof of concept for blockchain, in 2018, it looks set to go to production. In this technical review, we take a look at the ecosystem of organisations driving blockchain projects, those most likely to deliver over the next 12 Read more »

Greg Sim Glasswall Solutions

Proxy cyberwarfare, GDPR and blockchain – the prospects for security in 2018

The last year has been a significant 12 months in the short history of cyber security, with headline security breaches such as Uber and a scramble to come up with new approaches, particularly as the European Union’s General Data Protection Read more »

Karen Morgan PayCommerce

Inside The Federated Ledger: The Blockchain Technology Driving Instant Payments

At the beginning of the year, we made a bold announcement declaring 2017 as the year of instant payments. It was much more than a marketing tagline but rather a commitment to driving the payments industry forward. Why should payment participants Read more »

Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App