The Foundation for International Blockchain Real Estate Expertise has launched its first global industry report on how blockchain technology is being implemented in real estate, at MIPIM PropTech Europe.
Founded in July 2018 as a non-profit organisation, and partnered with the likes of CBRE and Rabobank, FIBREE has brought together 5,000 real estate professionals, blockchain specialists, legal experts and researchers from around the world to exchange their expertise and best practices.
The report hopes to highlight that blockchain is not “just a local phenomenon”, but is happening in every continent.
According to the report, blockchain initiatives for real estate have increased rapidly since 2016, and FIBREE has gathered and analysed information for more than 500 existing products, and asked its 55 regional chairs about their local state of the market.
The report covers what is blockchain and why it fits to real estate, the current state of the market in 2019, a map and breakdown of countries with blockchain activity, a product database, and the top 3 use cases in the real estate industry.
Here’s an edited extract
Top three use cases for blockchain
- Real estate transactions. In the case of real estate transaction, middlemen have long been under scrutiny, and are considered slow, expensive and ineffective. Blockchain applications often tend to focus on eliminating trusted third parties. The Georgian National Agency for Public Registry, NAPR, has built a blockchain add-on to their existing system. In doing so, they want to guarantee the authenticity of a land title.
- Real estate tokenisation. Real estate is the biggest asset class in the world, and at the same time, it’s also one of the most illiquid investments. In general, investing in real estate can be hard to access, time-consuming and capital intensive. Tokenization of real estate assets intend to disrupt these obstacles, by providing a way where hundreds of transactions can potentially be executed within minutes.
- Decentralised infrastructure. This could be considered as one of the first ‘lessons learnt‘ by the real estate and blockchain community. Building a new infrastructure requires common standards and definitions. Increased liquidity or seamless transactions require a legal framework that is based on uniform transaction-information systems, sale and purchase as well as rental, and improved transparency with digital property-passports.
Blockchain for real estate has shown a growing interest over the last years, however according to FIBREE, the level of engagement by the real estate industry is still relatively low, adding in a press release that it seems to be more an “evolution, rather than a revolution” to real estate.
Achim Jedelsky, president of FIBREE said the report gives the organisation the opportunity to contribute to the market with a “realistic perspective on the impact of blockchain for real estate”, and added “never before such a global survey has been done.”