Blockchain technology in commercial real estate transactions

H.P. Wouda, Raymond Opdenakker (Corresponding author)

Research output: Contribution to journalArticleAcademicpeer-review

6 Citations (Scopus)
93 Downloads (Pure)

Abstract

Purpose
The transaction process of an office building is known to be time consuming and inefficient, in part due to the lack of market transparency. The purpose of this paper is to focus on the development of a blockchain application that can improve the transaction process of office buildings in the Netherlands.
Design/methodology/approach
Conducting design science research, the current transaction process of an office building and status quo of blockchain technology in real estate is investigated. Subsequently, multiple parties are interviewed to define major pain points within the process. The interview findings are used to design a blockchain solution which overcomes the aforementioned pain points. After designing, the interviewees are asked again to pragmatically validate the proposed model.
Findings
One of the major pain points identified concerning the transaction process of an office building is that it is difficult to define the characteristics of a property, due to lack of data structure and quality. The proposed application improves the way specific assets are understood by structuring physical and contractual information in one place and guarantees the quality of the data by using the blockchain mechanisms.
Practical implications
A blockchain application is proposed, which can improve the transaction process of an office building.
Originality/value
Recent studies indicate that blockchain technology could lead to improvements in efficiency, transparency and therefore trust within the transaction process. Therefore, the proposed application is of value for the future of real estate data management and the transaction process.
Original languageEnglish
Pages (from-to)570-579
Number of pages10
JournalJournal of Property Investment & Finance
Volume37
Issue number6
DOIs
Publication statusPublished - 20 Aug 2019

Keywords

  • Blockchain technology
  • Commercial real estate
  • Design science research
  • Information system
  • Innovation
  • Transaction process

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