Blockchain Technology To Presumably Underpin Crowdbuilding In Russia
Distributed ledger technology and crowdbuilding principles applied in European countries may become a new possibility for the development of housing cooperatives in Russia, Forbes reports.
According to the statistics of a British bank HSBC, only about 40% of the planet inhabitants have their own housing. This is due to the lack of a sufficient amount of money to afford it.
The real estate price is a combination of various factors. It consists of construction delays, developers revenue share, debt service obligations, and many other expenses which are usually hidden from buyers. With the increase in the number of such factors, the housing final cost gets higher.
The building industry is traditionally conservative, innovations enter it rarely and with great difficulties. Knowing about the significant sums of money involved in this branch, scammers find their way into it. Statistically, 5% of all fraudulent schemes in the world account for the construction industry.
Forbes offers a solution based on the European crowdbuilding system — the equivalent of housing cooperatives which were popular in the Soviet Union. Purchasers make contributions in the early stage of construction and buy real estate collectively.
The blockchain technology integration may be the main advantage. Financing can be put into smart contracts with the help of which one can transfer money after another stage of construction is finished. Such a scheme does not involve unnecessary intermediaries and fees. Furthermore, square meters can be tokenized, and security tokens can become housing certificate analogs.
As previously reported, the Swiss regulators have granted a permit to the Blockimmo startup for offering tokens in the form of shares and endorsed its model of business development in real estate tokenization.