FIRST GLOBAL INDUSTRY REPORT “Blockchain Real Estate” published by FIBREE
Please Note: Ubitquity is listed in the directory, and Nathan Wosnack is a Regional Chair (RC) for Chile. Ubitquity will be global sponsors in the coming months as well.
Paris, July 1, 2019
First global industry report “Blockchain Real Estate” published by FIBREE
FIBREE — the Foundation for International Blockchain Real Estate Expertise, presents the first ever global industry report on how blockchain technology is being implemented in the real estate industry. The first copy is presented by FIBREE on July 1st at MIPIM PropTech in Paris. Blockchain for real estate has shown a growing interest over the last years, however the level of engagement by the real estate industry is still relatively low. It is moving forward step by step and seems to be more an evolution, rather than a revolution to real estate.
The FIBREE Industry Report highlights that blockchain is not just a local phenomenon. The action is happening in every continent and there are multiple hotspots equally spread throughout the world. USA is the country and London the city with most blockchain initiatives for real estate. Despite its true potential is still relatively unknown in many local markets, the number of ‘blockchain for real estate’-initiatives has increased rapidly since 2016. FIBREE gathered and analyzed information about more than 500 existing products and asked its 55 regional chairs about the local state of the market.
“We see this as a milestone for FIBREE to contribute to the market with a realistic perspective on the impact of blockchain for real estate. Never before such a global survey has been done. All this was only possible thanks to the great enthusiasm and commitment of the FIBREE participants and the support of our sponsors and partners,” said Achim Jedelsky, President of FIBREE.
Three major use cases have been identified worldwide, resulting in a global picture that includes solutions for real estate transactions, real estate tokenization and building decentralized infrastructure. The various real estate solutions show the variety in which added value can be created with blockchain. However, many of the products analyzed are still very young and in an early phase of market deployment, so the real added value for the market often still needs to be proven.
The current state also shows that there are still many challenges to be targeted. Market education to increase awareness in the market is a requirement broadly addressed. Better understanding and a more strategic approach to digitizing real estate processes must help improving the chances for good initiatives to find development- or funding partners. Compliance to regulation or the scalable deployment of distributed ledger technology is another frequently heard challenge, although this seems not to be an issue at every type of product.
Most activity is deployed by startups and, in some countries also by governments or large real estate corporations. Mostly the market has taken notice of blockchain, but is still a little reluctant in embracing these solutions. In combination with relatively low funding of many young initiatives and the multiple challenges to overcome, it is not surprising that circa one out of three products seem to already have ceased their activities within 2 years after incorporation.
FIBREE thinks in many regional markets the hype around blockchain is over. The market understands that the true potential of new technologies such as blockchain can’t be fully unlocked, as long as information-exchange is mostly paper based, and only partly digital. But the industry is also very fragmented and stretches over a long period in time. Lots of information gets lost between the successive links in the chain. Many companies think the costs of digitizing for single parties will outweigh the benefits in the short term. As we see in other industries, FIBREE believes a consortium approach can make the difference to such issues. This is where FIBREE can add value, by connecting professionals in local meetups to exchange their expertise and discuss best practices. When appropriate this can lead to the starting of local working groups, to jointly discover and develop next steps that will make a difference in the market.
“When developing an infrastructure in a consortium, the costs for individuals will be lower and the benefits will be higher,” said Achim Jedelsky, President of FIBREE.
FIBREE — the Foundation for International Blockchain Real Estate Expertise, founded in July 2018 as a non-profit organization. FIBREE is a worldwide expanding network to find out where Blockchain is leading the real estate markets. FIBREE aims to be the leading international network for exchanging knowledge between the real estate industry, the IT sector and blockchain technology. Within 12 months it has grown into a global network of 55 regional chairs with 40 locations in 25 countries on five continents. FIBREE brings together already more than 5.000 real estate professionals, blockchain specialists, legal experts and researchers from around the world to exchange their expertise and best practices. FIBREE’s mission is to create a realistic expectation pattern that enables the real estate market to gradually discover and exploit the true potential of Blockchain technology.
#Fibree #blockchain #realestate #decentralized #cbre #rabobank #bouwinvest #vesteda #dlapiper #UBITQUITY
The report was be available digitally via our webpage on July 1st at 12pm (noon):