Real estate markets are not as transparent as they could be. Industry professionals are seeking a change. The Global Real Estate Transparency Index helps developers, investors, and corporations analyze real estate environments. It quantifies data based on 139 variables. Analyzed data can be categorized as follows
- performance measurements
- data availability
- transaction processing
- corporate governance
Increasing transparency is cited as a top priority.
Problems Caused by a Lack of Transparency
Investors do not want to operate in countries where real estate dealings are opaque. This hesitation is not limited to investors. Tenants also choose to stay away from these countries. Living standards directly suffer because of this insufficient transparency.
Benefits of Real Estate Blockchains
There are many benefits for employing blockchain technology. The aspects most affected when transparency is increased are:
- living standards
- corruption mitigation
- user efficiency
- payment solutions
- conflict resolution
- decision making
- community well-being
Blockchain technology enables people to put their trust in the underlying code and a permanent ledger. Automatic rental and service payments are facilitated by digital leases. Users gain increased efficiency because operations are streamlined and become more cost effective. It limits corruption due to the human element. Instead of many organizations fighting for user data, individuals maintain control of their information. A permanent ledger that is transparent and traceable affords both users and companies a true level playing field.
Through the use of smart contracts, blockchain technology provides a just way to resolve conflicts. Since the information is readily apparent, decision making and determining fault becomes easier. On top of this, conflict resolution can move forward with the information resources needed for an agreeable settlement. Along these same lines, avoiding conflicts becomes the new standard.
Each of these aspects results in improving the overall living standards of new real estate markets that embrace transparency. It is about more than trust. Real estate transparency fosters good business practices which in turn generates income and raises the standards of products and services. To surmise, transparency enhances the well-being of both business operations and the communities living in these dwellings.