Blockchain technology is gradually making inroads into the real estate valuation process, simplifying and accelerating investment.

Still very much in its infancy, blockchain tools have the potential to bring clarity to investment decisions by working alongside other technologies, such as artificial intelligence and machine learning.

By linking data sets from different sources – along with documents and other forms of information – to properties, blockchain offers investors a more transparent digital view on a property. The Bank of China Hong Kong this year announced it is using blockchain technology for its real estate appraisals.

The tools can save investors time during the valuation process by “adding simplicity and security”, says Isaac Pernas, CIO Southern Europe Cluster at JLL.

Blockchain technology was used by JLL for the first time in real estate appraisal in Spain this year.

“It’s about creating an environment in which all information on a property can be gathered in a reliable, confident and non-modifiable way – while the validity of the valuation can be verified quickly and simply from any online device,” says Pernas.

Authentication of data is carried out automatically in blockchains, without any of the parties involved in a transaction being able to tamper with data. This clear and objective handling of data can “inspire security and confidence and ensures databases are considered trustworthy giant leap for the valuations business,” Pernas says.

“Blockchain does not affect valuation standards or methodologies – but can affect the way different pieces of information are collated,” Pernas says.

READ FULL ARTICLE HERE!