Blockchain set new heights this week with its first-ever European property sold entirely through a blockchain transaction.
AnnA Villa, the luxury building in Paris, set history when its €6.5 million price-tag was paid using blockchain technology. Sapeb Immobilier and Valorcim the French real estate companies who made the purchase, sought out the services of French blockchain investment platform, Esquisafe, to accommodate the transfer.
The deal itself was powered using the Ethereum token and is part of a recent effort to bring real estate sales onto blockchain technology and unlock the potential that this technology brings. Whilst the sale was the first of its kind in Europe, there have already been several other real estate sales in the US. A luxury resort in Aspen, Colorado sold for over $18 million through security tokens whilst a Manhattan property that was sold on the Ethereum Blockchain was sold for $30 million.
The real estate industry is touted as being an industry ripe for blockchain technology. Esteemed real estate entity the “Royal Institute of Chartered Surveyors” have recently been commenting of the many advantages of blockchain technology. In 2017 Deloitte, released a report called “Blockchain in commercial real estate: The future is here” where they outline all the advantages of the blockchain and how it can be Implemented into the industry. In the report, Deloitte states:
“Our Blockchain in commercial real estate report takes a deeper dive into the ways blockchain technology can create opportunities while alleviating some of the existing challenges. We look at six use cases for improving the leasing and purchase and sale process through the use of blockchain:
- Improve the property search process
- Expedite pre-lease due diligence
- Ease leasing and subsequent property and cash flow management
- Enable smarter decision-making
- Transparent and relatively cheaper property title management
- Enable more efficient processing of financing and payments”
In further blockchain real estate news, digital equities group, Elevated Returns, unveiled their plans to tokenize $100m of real estate in Thailand this year. Innovative UK-based company BRIKCOIN launched its “Revolutionary Investment Model” that aims to use blockchain technology to build affordable housing.
The idea of moving the real estate process to blockchain provides many advantages over a traditional sale process. In the sale of the AnnA Villa, much of the slow legal documentation involved with selling the property was all encrypted and recorded on the blockchain, as opposed to taking many weeks of approval and potential mistakes along the process.
If you are interested in finding out more about Real Estate Use Cases for Blockchain Technology, the Enterprise Ethereum Alliance (EEA), Real Estate Special Interest Group have created a report discussing the possibilities.
Sources: forbes.com, tokenpost.com, blockchaintechnews.com, commercialobserver.com, rics.org, deloitte.com, destinationthailandnews.com, brikcoin.net