Barries

Barriers of the Traditional Real Estate Market

The traditional real estate industry, although valuable, is filled with structural barriers that prevent it from being agile, inclusive, and globally scalable. These barriers not only affect individual investors but also limit innovation and growth in the industry as a whole.

1. Capital Requirements

Real estate investments usually demand high initial capital, making it nearly impossible for most individuals to participate in valuable opportunities. Entry is often restricted to institutional investors or the ultra-wealthy.

2. Bureaucracy and Paperwork

Property transactions involve lengthy legal processes, intermediaries, notary services, manual registration, and high administrative costs. This results in inefficiency, delays, and lack of automation.

3. Liquidity Constraints

Unlike digital assets, real estate cannot be easily bought or sold. Exiting a position in a property often requires finding a buyer, negotiating contracts, and dealing with long closing times.

4. Geographical Limitations

Most people are restricted to investing in their local market due to legal complexity, tax barriers, and unfamiliarity with foreign regulations — blocking access to global diversification.

5. Opaque Market Information

There is no global standard for property data. Inconsistent or hidden information about pricing, ownership, and transaction history increases the risk for investors and decreases trust.

6. Centralization and Intermediaries

Banks, brokers, title companies, and regulators all have control over the process. This centralization results in high fees, reduced transparency, and little room for innovation.

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These limitations make the real estate sector one of the most resistant to change — but also one of the most promising markets for blockchain disruption.

Homeblock addresses each of these barriers through its decentralized, tokenized, and fully digitized approach.