How blockchain is transforming the real estate industry
According to analysts from Fundação Getúlio Vargas and Sinduscon-SP, increases of 2.4% in construction GDP and 12% in the increase in formal production of real estate projects are estimated in 2023. In other words, the expansion of activity in the sector will continue at full steam this year.
However, we know that real estate management processes, such as buying and selling, renting and leasing, financing and administration, are complex and often bureaucratic. They require a lot of paperwork and intermediaries such as banks, offices, notaries, brokers, and lawyers. All these transactions make the process inefficient, creating a bottleneck for the sector.
In the wake of innovation, blockchain technology emerges as a facilitator of these methods, making them more agile, efficient, and less bureaucratic. This trend reached the market recently: the first unit sold in the country occurred in 2019 in the acquisition of a commercial building in Rio de Janeiro and excited the market: the operation that would take an average of a month to complete was completed in just twenty minutes.
Propy’s role in the market
Propy is a real estate technology company that stands out for its innovative, blockchain-based platform designed to facilitate global real estate transactions. Founded in 2017, the company aims to simplify the process of buying and selling properties, making it more efficient, safe, and transparent.
One of Propy’s main features is its ability to offer blockchain-based smart contracts, allowing parties involved in a real estate transaction to automate various aspects of the process, from property verification to the transfer of funds, thus reducing the risk of fraud and errors.
Additionally, the company enables the tokenization of real estate assets, meaning properties can be divided into smaller parts (tokens) that can be purchased by individual investors. This brings more liquidity to the real estate market, allowing more people to participate in real estate investments.
What’s more: the platform also offers advanced market research capabilities, offering buyers and sellers detailed information about properties around the world, helping investors with decision-making.
From reducing bureaucracy to fraud prevention
The digital transformation proposed by Propy brings several advantages to the economy. In the real estate sector, this translates into automated smart contracts, which only perform an action when specific conditions are met, reducing the risk of fraudulent deals. With immutable records, all parties involved in a transaction can trust the information recorded on the blockchain.
Digitization also eliminates the need for physical paperwork and reduces the bureaucracy associated with real estate transactions, as contracts and documents can be stored digitally, saving time and money on printing and storage.
Automating processes via blockchain reduces the need for intermediaries and speeds up the completion time of real estate transactions. This way, the parties involved can conclude negotiations more quickly and efficiently. This allows investors to participate in the global real estate market more easily, making buying and selling properties in different regions and countries simpler.
Using an immutable record on the blockchain, it is possible to completely track the ownership history of a property, making it a useful tool for verifying the authenticity of the property and resolving legal disputes.
