Ukraine and Propy Unite for Real Estatebr>
California-based blockchain startup Propy is collaborating with the government of Ukraine to enable Ukrainian properties to be sold entirely online using blockchain.
Ukraine’s housing prices experienced a massive decline in 2014 and 2015, and prices are down nearly 70% below their 2008 peak. However, Ukraine’s economy shows signs of recovery, with the GDP rising 2.3% last year. This has made real estate investments appealing to foreign buyers, and the Ukrainian government is seeking ways to facilitate transactions to boost economic outlook in the nation.
Currently, a two-bedroom apartment sells for USD 50k-90k in Kiev, USD 40k-80k in Odessa. A history of Ukraine prices can be found here.
In 2018, new legislation will allow foreign investors to purchase land in the country, opening up the nation’s rich agricultural resources to international buyers. Pilot programs will be led by Propy in coordination with Ukraine’s Agency for E-Governance throughout the next year.
Propy is a peer-to-peer real estate exchange platform built on blockchain technology. The Silicon Valley based company is advised by the founder of TechCrunch, Michael Arrington, Alain Pinel, Apple’s Daniel Kottke and Bessemer Venture Partners’ David Cowan. Propy is using the ethereum blockchain to allow brokers, buyers, sellers, and title agents/notaries to sign off on transactions within their existing legal frameworks.
By using smart contracts to track and execute real estate transactions according to regional regulations, Propy aims to address the problems of real estate’s legacy registry systems and outdated property sales process in Ukraine.
Propy’s PRO token will be required for interaction with the Propy Registry, specifically when users change ownership of a title or register a new title. ERC-20 PRO token will allow for both simple integration into users’ wallets and ease of use in traditional exchanges. 100,000,000 PRO tokens will be available for purchase in PRO’s token sale beginning August 15.
“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, head of the State Agency for E-governance of Ukraine. “Adopting the blockchain’s transformational technology will benefit all counterparties in real estate transactions through fostering greater transparency, efficiencies, security, and compliance.”
“Ukraine’s recent commitment to build a blockchain-based internal government database with Bitfury was a great first step,” said Natalia Karayaneva, CEO of Propy. “Ukraine’s government is strongly interested in building upon this progress by leveraging Propy’s technology to facilitate online real estate transactions to attract foreign property investors. While this clearly benefits the Ukrainian real estate market, it also allows foreign investors to purchase enticing properties in a very low price range, all with the benefits and security that Propy provides.”