Propy, the global property store and decentralized title registry, is partnering with the government of Ukraine to allow online real estate purchases by foreign investors for the first time.
The collaboration between Propy and the State Agency for eGovernance of Ukraine will enable online settling of real estate transactions, using smart contracts. This way of buying real estate will attract foreign investors, in fact, opening the market to them.
As the result of housing prices’ massive decline seen in 2014 and 2015, current prices are down nearly 70 percent as compared to their level in 2008. However, Ukraine’s economy today shows signs of recovery, with the GDP rising 2.3 percent last year. This has made real estate investments appealing to foreign buyers, especially given that as of January 1, new legislation will allow foreign investors to purchase land in Ukraine. Logical enough, this made Ukrainian government turn attention to the blockchain in hopes that this technology will lead the country’s next real estate boom.
“Our ambition is for Ukraine to be one of the world’s foremost nations in establishing a comprehensive Blockchain ecosystem, and the real estate sector forms an important part of our overall Blockchain strategy,” said Oleksandr Ryzhenko, Agency head. “Adopting blockchain’s transformational technology will benefit all counterparties in real estate transactions through fostering greater transparency, efficiencies, security, and compliance.”
Benefits Propy Offers
Ethereum-based Propy aims to solve the inefficiencies of cross-border real estate investment allowing brokers, buyers, sellers, and title agents/notaries to sign off on transactions according to regional regulations. This first decentralized, global transactional property platform serves as a place where real estate can be bought and sold, and property titles can be verified and registered with local authorities.
Listing the advantages of Propy adoption, first of all we should mention the speed: having a land register on blockchain speeds up the registration process greatly, as the ledger is be updated with relevant information straight after the deal is done.
Then it’s security: usage of blockchain cuts down on property fraud, as each property would be uniquely coded and linked to a secure user key held by the owner.
And, of course, settlement of regional legal issues: Propy uses smart contracts to track and execute real estate transactions according to regional regulations.
Like other Ethereum blockchains, Propy’s PRO token will be required for interaction with the Propy Registry, specifically when users need to change ownership of a title or register a new title. So, it is designed to work as a method of settlement and as a means for interaction with Propy’s registry. Propy’s ERC-20 PRO token will allow for both simple integration into users’ wallets and ease of use in traditional exchanges.
One hundred million PRO tokens will be available for purchase during its ICO within next 30 days.