Over the past ten years, Innovative software and new digital workflows have changed the real estate industry and other industries that go hand in hand with it like the furnishings and cabinetry industry (wholesale cabinets). Now it is blockchains and cryptocurrencies are driving the next technological revolution in the real estate market.

More security and faster transaction processes

Blockchain technology and cryptocurrencies are having an increasing impact on various industries and our everyday lives. With a projected global market capitalization of around 3700 billion US dollars in 2025, the blockchain revolution does not stop at the real estate sector.“Blockchain and direct peer-to-peer transactions offer enormous potential for further technologization in the real estate industry. Selling and buying real estate can become much more efficient, transparent, and cost-effective thanks to blockchain technology. In 2030 we will probably no longer be able to imagine having ever carried out transactions without blockchains. The technology will not disappear from the market, but offers the potential to transform the settlement process forever, ” explains Lam Son Nguyen, Vice President of Strategy & Business at McMakler.

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Trading real estate in Germany is complex and takes a long time compared to other goods. The reason: A lot of different information and declarations of intent have to be recorded, verified, and evaluated. This information is then exchanged between various government and private parties such as brokers, government agencies, banks, appraisers, and notaries. For example, the formal change of ownership for a single-family home can take up to six months or longer. Blockchain technology can be used to make centralized processes in the real estate industry, such as buying, financing, or managing real estate, much faster and more cost-effective: “With blockchains, illiquid goods such as real estate become easier to trade. Blockchain-based projects along the entire real estate value chain have been around for years. In the future, it will no longer take days to complete a financial transaction process, but only seconds, ” says McMakler’s Lam Son Nguyen on the advantages of blockchains.

“Tokenization” of real estate

A blockchain is a kind of decentralized booking system in which every user who is part of this blockchain network can view the entire database with all information chains or excerpts from it. Because the data stored in a blockchain and immediately encrypted is available to every network participant and must match the data copies of other participants, subsequent manipulation of data, ratings, and balance sheets is almost impossible.

Data recovery is also easy as the entire transaction history can be retrieved from any network node. Blockchain technology enables sellers to sell a property as a whole or to “tokenize” individual parts of the property. Several people can thus acquire digital shares in a property. Each of these persons becomes a co-owner of the property by owning the tokens. The seller can generate liquidity from his property as needed, similar to issuing shares. The token buyers can resell the tokens profitably at any time, for example after a rise in real estate prices.

In this way, the blockchain also lowers the hurdles for real estate investments by a broader audience. This is exactly what many trade apps and blockchain platforms in the real estate industry are based on. Investing in real estate is also becoming more transparent and easily accessible for small investors.

More accurate property valuations and forecasts

47.2 percent of the brokers surveyed state that the condition of the property is particularly important to them when they first take a property in. Around a quarter, at 23.3 percent, say location is most important. Other frequently mentioned points are the completeness of the necessary documents and the price and return expectations of the seller.

Brokers will need more technological financial know-how in the future

More and more companies are opening up to digital currencies (e.g. bitcoins) as a means of payment. And just recently, a Maltese real estate company announced that rental payments can now also be made using the cryptocurrency Cardano (Ada). In addition to paying with cryptocurrencies, blockchain technology also enables real estate companies and interested parties to have more security and transparency, a faster sales process, and the digital distribution of the value of property among several people or parties. In the future, brokers will be able to survive in the market who, in addition to local market expertise, specialize more in real estate consulting in dealing with digital assets and cryptocurrencies.

In the future, technological financial know-how will also play a decisive role in the brokerage profession. Tokenizing real estate or even entire real estate projects and thereby giving buyers access to digital co-ownership shares is already technically feasible. “The biggest challenge in Germany will be the linking with official, mostly manual processes, such as land register offices or district courts. With the right legal framework, however, innovations in the real estate industry can be sustainably promoted. This will also change the profession of brokers in the long term. A deeper understanding of digital transaction processes will be indispensable alongside real estate know-how,” explains Lam Son Nguyen, Vice President of Strategy & Business at McMakler.