A report published on Wednesday by Colliers Research stated that although blockchain adoption appears like a remote possibility, there are still several near-term applications of the technology in real estate in India.
Some of these applications included, digitisation of land title, recording of transactions, multiple listing services and fractional ownership of real estate assets. Over time, other processes such as smart contracting, notary services can also follow suit. The best part of this technology is that it is absolutely impossible to edit any block, once it has been formed.
Joe Verghese, Managing Director at Colliers International India said, “Despite the roadblocks, the blockchain disruption is a long-awaited reform that the real estate industry arguable requires worldwide. Its inherent characteristics of being faster, tamper-proof and transparent are the pulling forces which entice not only the institutional investors and government institutions, but also retail investors.”
Some of the areas where blockchain technology can be incorporated include, digitisation of land title which would include
digitisation through a piecemeal adoption approach. Blockchain could be introduced to the lands belonging to the government and various authorities such as railways, defence and ports in phase one. Subsequently, it could be implemented on mortgaged land and private land, the report noted.
Crypto-News India had reported on Advisor of the IT Minister in Andhra Pradesh JA Chowdhary saying, “This land digitization project is called Amravati. We have now completely moved away from Proof of Concept and have entered production stage. In the next two years, our state will be entirely run on blockchain.”
Andhra Pradesh, one of the pioneer states to implement blockchain technology has also incorporated the same in the hospitality industry. The blockchain initative called Zebi will render the process of submitting ID to the hotel completely redundant.
The report noted, other aspects of real estate such as fractional ownership which would involve companies such as PropertyShare and RealX providing a portion of ownership rights to clients on the blockchain system.
By using smart contracts agreements that are executed during a transaction will be automatically guaranteed by the efficiency of blockchain mechanism, without any third-party intervention.
Surabhi Arora, Senior Associate Director, Research at Colliers International India said, “At the moment, the fate of blockchain technology depends on the wider acceptance by innovation-friendly and future-ready real estate firms and government authorities. The impact of blockchain can only be fully achieved when the allied industries adopt it entirely in their day to day operations. We suggest the industry stakeholders be ready to adopt and apply blockchain tools in their processes. As the technology in hand is not a low-cost solution or an easy alteration in the existing ways, blockchain adoption will time to fully realise in the real-time world.”
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