BrickVest surveyed 101 European property investors to gauge their attitudes towards blockchain technology.

Some 70 per cent of property investors believe regulators are “unprepared” for the mass adoption of blockchain technology by financial institutions, according to a new report by BrickVest.

The online real estate investment platform surveyed 101 property investors last month in order to gauge their attitudes towards blockchain and its potential uses in the financial services industry.

Blockchain technology, a virtual distributed ledger of transactions shared peer-to-peer, can record ownership across a public network of computers rendered tamper-proof by advanced cryptography. It is already known as the platform for the controversial digital currency bitcoin.

The nascent technology is causing a stir within the financial services sector as its supporters believe it could reduce hidden expenses in the financial system by ousting inefficiencies across areas such as payments, syndicated loans and equity clearing. 

Although more than half, or 56 per cent, of real estate investors believe the property sector will “eventually” adopt blockchain technology for transactions, BrickVest's study showed that integrating blockchain technology into existing regulatory and legal frameworks will be the largest obstacle preventing widespread implementation. The second biggest perceived challenge by respondents was the reluctance by banks, insurance companies and private equity firms to invest in blockchain technology, followed by a lack of knowledge and education among industry participants.

When it came to familiarity levels with the disruptive technology, findings were even less promising. Some 44 per cent of property investors claimed to be “familiar” with blockchain while only 2 per cent said they were “very familiar”.

“While the majority of property investors view blockchain as a core part of the future industry landscape, investors have correctly highlighted many of the challenges ahead, most notably at a legal and regulatory level,” said Emmanuel Lumineau, BrickVest's chief executive, adding: “Blockchain technology makes particular sense for secondary markets such as real estate investments and equity crowdfunding, which previously wouldn’t have been viable due to high transaction costs.”