The Efficiency of Blockchain in Spatial Planning.

The Treatment and Creation of a Digitalization of the Real Estate Portfolio in Cities and its Impact on Spatial Planning

I wrote in my last article in “Out of the Box Real Estate Intelligence” about the importance of Blockchain in real estate mediation (https://outofthebox.pt/o-potencial-do-blockchain-na-mediacao-imobiliaria/), as it is the aspect that I delved the most into. in my career in the real estate industry, but it is also essential to demonstrate how much this technology can impact the way we live. It is like? Let's see in the real estate context, how the application of Blockchain technology promises to revolutionize portfolio management and spatial planning in cities.

Blockchain and the Digitization of the Real Estate Portfolio

Blockchain is a distributed ledger system that guarantees the integrity and immutability of data through a decentralized consensus mechanism. Each transaction is recorded in blocks that are chained encrypted, making manipulations practically unfeasible.

Its applications in real estate are vast, but I list the main ones:

1. Property Registration

Blockchain can be used to create digital property records, ensuring the authenticity and immutability of ownership information and inherent real estate transactions.

2. Secure Transactions

With smart contracts, real estate transactions can be automated and executed securely and efficiently, reducing the need for intermediaries and minimizing fraud.

3. Transparency and Accessibility

The availability of real estate records on a public blockchain allows easy and transparent access to information, facilitating property verification and informed decision-making.

Regarding the benefits of Blockchain in Real Estate Management, here are some important ones to mention:

1. Operational Efficiency

Using blockchain eliminates the need for extensive and repetitive bureaucratic processes. Smart contract automation and real-time transaction validation streamline operations, reducing costs and increasing efficiency.

2. Fraud Reduction

The immutable nature of blockchain prevents the alteration of records, which protects against fraud and property ownership disputes. Decentralized verification ensures that all data is authentic and auditable.

3. Accessibility and Transparency

Digitizing the real estate portfolio on a blockchain platform facilitates access to information for all interested parties, from investors to government authorities. This promotes greater transparency in the real estate market.

In relation to the Impacts on Spatial Planning, I consider:

1. Efficient Urban Planning

With real estate records digitized and centralized on a blockchain, authorities can obtain a comprehensive and accurate view of urban properties. This facilitates urban planning, allowing for more effective allocation of resources and infrastructure development.

2. Sustainability and Resource Management

Access to accurate data on land use and the quality and state of construction of properties allows for better management of natural resources and a more sustainable approach to future development. Land use policies can be formulated based on concrete data, promoting balanced urban growth.

3. Citizenship

The transparency provided by blockchain can encourage greater citizen participation in the spatial planning process. With access to clear and verifiable information, the community can be more actively involved in urban development decisions, being well informed about the urban reality in real time.

However, there are challenges and obstacles to overcome so that it is possible to digitize the real estate of cities, countries, and the world. Adapting to new technologies is one of the challenges. The implementation of blockchain in the real estate sector requires a significant change in technological infrastructures and administrative procedures. Adaptation can be a challenge for organizations and governments accustomed to traditional systems and bureaucratic methodologies. At a legal level, the introduction of innovative technologies such as blockchain requires an update of existing rules, laws and policies to ensure legal compliance and protection of the rights of all parties involved, as well as adapting procedures to the speed and transparency of blockchain and artificial intelligence . It is also crucial to guarantee the privacy of personal and sensitive data. The balance between transparency and data protection must be carefully managed.

In short, blockchain has the potential to radically transform the management of real estate portfolios in cities, promoting efficiency, transparency and security. Its impact on the order of the Territory can be equally significant, allowing for more efficient, sustainable and participatory urban planning. However, adopting this technology requires a careful approach to overcome technical, regulatory and privacy challenges. Collaboration between governments, the private sector and civil society will be essential to explore the full potential of blockchain in the real estate sector, and in this way society can coexist in a more orderly and sustainable way.