Our marketing partner Yael Tamar and Ido Shacham recently got back from the MindChain conference in Cluj-Napoca, Romania where Yael moderated a fireside chat on the topic of “How Blockchain and Artificial Intelligence will reshape Real Estate.”
The entire real estate industry is ripe for innovation because of the many layers of inefficiencies involved in the old system.
As Yael explained to a fascinated crowd of blockchain influencers from Europe and beyond, traditional real estate transactions are weighted down with price distortions, inefficiencies, and a long and often tedious transfer process.
So even just for simple buy/sell transactions, the transformation to blockchain-based systems enables property owners, prospective investors/buyers, and tenants to define, manage, and automate their business relations independent of third parties.
But buying and selling real estate is just the start, especially when AI is added into the equation. Beyond buying and selling residential and commercial properties, real estate is also a vast field for global investment that’s desperate for a killer app. Blockchain has provided this, too, in the ability to tokenize properties and partial transfers through fractional real estate ownership.
And when we introduce AI, things really take off in exciting new directions. That’s happening now both through smart contracts and through other forms of automation such as mass valuation, a process which uses blockchain to aggregate property information, providing an increasingly accurate picture of neighborhood profiles and trends which will add so much value not just for residents but especially for investors and developers looking for an edge that will help them spot the next big thing in the real estate market.
And when it comes to tokenization, smart contracts technology is harnessing AI capabilities to seamlessly facilitate transactions that would normally have required lengthy inconvenient escrow authentication and transfers, letting buyers and sellers speed the process along and eliminate hefty fees. Where once third parties would have been essential for trust and oversight, watch for that process to increasingly be turned over to next-generation machine-based logic.
“Going forward,” Yael said, “the most successful real estate companies are absolutely going to be the ones who recognize the potential for AI to completely transform the way they do business.”
It’s incredible to be part of a global forum like this, networking with others from all over the world in the blockchain space, learning from their best practices, keeping in touch with trends, and humbly (or not-so-humbly!) sharing a little of our experience. Watch for more exciting road trips in the very near future.