According to the UK PropTech Association, and following a recent announcement by global real estate platform, Propy on its first European blockchain-driven transaction, blockchain powered property sales within the UK will continue to increase as the technology shows profit and transparency.
Propy’s announcement comes at the same time as the HM Land Registry has said it is expanding its research and development project, Digital Street, exploring how blockchain technology could be used to provide quicker and simpler services.
The sale, in Seville, Spain, one of Europe’s hottest real estate markets, marks Propy's official introduction to Europe. Both the Spanish seller and French buyer used cryptocurrency (ETH-ETH) to transfer property ownership via Propy’s transaction platform.
The Silicon Valley-based company has already facilitated cross-border sales in the US and Eastern Europe. For Propy, this transaction marks an important milestone and a first step into entering other European markets, including the UK.
Sammy Pahal, Managing Director at The UK PropTech Association, said: “This Propy transaction is a really exciting step forward for the PropTech industry. Quite often we talk about new technologies such as blockchain and AI and try to educate the industry on the impact it will have, but often it is seen as hype or something which is a long way off. However, there are now successful examples of blockchain being used in buying and selling property, which is moving the whole conversation along."
"Blockchain technology continues to revolutionize the way people buy and sell properties across borders," said Natalia Karayaneva, CEO of Propy. "The EU market can be a complex web of governments, brokers, and other entities making international property transactions difficult. Propy's blockchain-enabled platform removes complexity resulting in a simple online transaction that is easy to complete and secure."
“We are delighted that the HM Land Registry is developing its research project into the use of blockchain and how it can make property transactions more efficient. We look forward to monitoring the progress of the project.”
Until now, real estate investment has been a tedious process. Purchasing property across borders involves buyers and sellers from different tax and regulatory jurisdictions. The traditional process is not only complicated and expensive but also vulnerable to fraud.
Propy's platform simplifies the transaction process and works within existing legal frameworks. All parties participating in the transaction have mutual trust because of immutable encrypted records on blockchain.
All of this helps to fuel a thriving real estate market in the EU, which continues to get increased attention from US and Chinese investors. Typically, they look for sea-view villas at around US$200,000. Now those investors can browse and purchase remotely online.
"I am very happy with the outcome of the sale," said Miguel Prados Rodriguez, the seller of the property. "Propy made the entire process simpler than it would have been through a traditional sale. Their platform is user-friendly and gave me the peace of mind I needed to know the entire transaction was safe."
As for Propy's future with its blockchain property sales, it has another transaction scheduled for the next few months in Spain.
Edited by V. Haviland
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