The real estate sector is often based on the legacy data management system and is vulnerable to fraud. It involves lengthy processes, making it difficult for stakeholders, including buyers, sellers, investors, and more, to navigate the industry landscape. This property sector has always been criticized for the lack of transparency and other challenges that lead to distrust and affect the user experience. However, two groundbreaking technologies, AI (Artificial Intelligence) and Blockchain have the potential to transform this property industry and eliminate major problems. The AI Blockchain development for real estate opens doors to new opportunities for the real estate sector.
In this blog, we will delve into the ways the combination of AI and Blockchain addresses crucial issues and revolutionizes the real estate industry.
The following are some top challenges the real estate industry faces and need to be addressed with a better solution.
The real estate sector often lacks transparency, which affects the individual’s property buying, selling, and investing experiences. The parties involved in the processes, such as buyers, sellers, and investors struggle to access accurate and up-to-date information about property ownership, market trends, and transaction history. Such an opacity results in delays in completing transactions and affects the overall growth. Blockchain solutions for real estate have the power to build a transparent real estate ecosystem.
Another major challenge in the real estate industry is lengthy and costly processes. The real estate process heavily relies on lengthy paperwork and involves a number of intermediaries such as banks, brokers, lawyers, and many more, costing high transaction fees. The lengthy and expensive process not only affects the stakeholder’s experience but also makes the process costly, putting a burden on the pocket.
The traditional real estate ecosystem is complex and restrictive at the same time. The regulatory barriers, the absence of accurate information, and restricted access to the global real estate marketplace hinder investors from making informed investment decisions in this sector. Investors from different countries are unable to participate in the real estate projects.
According to data from the FBI’s Internet Crime Complaint Center, the real estate fraud resulted in victim losses of nearly $400 million in 2022. This statistic clearly highlights that real estate is highly vulnerable to fraudulent activities. From property title fraud to counterfeit documents, the media is flooded with several real estate fraud news. The cause behind the consistently increasing fraudulent activities is the inefficient processes and the lack of a secure and decentralized real estate ecosystem. Such a system allows criminals to easily exploit property records, manipulate ownership, and commit fraud.
The Grand View Research shows that the global real estate market size was valued at USD 3.69 trillion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2022 to 2030. Several technologies are playing a key role in fueling this growth. AI Blockchain solutions for real estate are considered ideal as they hold the potential to address the challenges of the real estate industry and revolutionize the way buying, selling, and investing in properties is accomplished.
Below, we have covered points highlighting how AI Blockchain development can solve problems in the real estate industry.
Blockchain real estate software development has gained prominence among real estate market players for its immutable and decentralized nature, which further ensures security and transparency in real estate transactions. Property transactions recorded on the Blockchain are fully-secured. The technology diminishes the risk of fraud, tampering, and disputes. The transparent and secured real estate ecosystem is a game-changer for businesses seeking innovative solutions to reduce the risk of fraud.
The traditional real estate process is complex as well as time-consuming. Relying on AI-powered platforms will be a wise move to simplify the processes as it automates several manual tasks and helps streamline various aspects of property transactions. AI algorithms have the ability to analyze property documents and verify their authenticity in no time.
AI Blockchain real estate software development helps reduce barriers to entering the real estate market without any restrictions. The tokenization and fractional ownership concepts provide opportunities for those individuals who do not have the financial means to invest in entire properties. AI-powered platforms can provide personalized assistance to homebuyers, showing more mortgage options and insights into desirable neighborhoods. Such increased accessibility makes real estate more diverse.
Blockchain development for real estate enables asset tokenization that allows a user to divide the properties into fractional ownership units. It is one of the most popular terms nowadays in real estate as it opens up opportunities for investment and liquidity in the real estate marketplace. Investors can easily buy the token representing the fractional units or a portion of a property. These tokens allow them to diversify their portfolios and access those assets that were previously out of their reach.
AI and Blockchain are the game-changer in the real estate industry. Both technologies have the ability to transform the real estate processes and transactions are made among parties. If you want to incorporate Blockchain into your existing infrastructure to bring efficiency, Antier would be a reliable partner. Antier is a leading service provider for Blockchain development for real estate that helps individuals or businesses tap into an efficient, secure, and decentralized ecosystem. Schedule your consultation call with the company’s proficient team today!