According to statistics from the real estate market in Spain, participation in the industry has increased by over 400% since last year. This rise occurred after the country emerged as a place of refuge for buyers in the face of macroeconomic inflation, instability, and rising prices, all of which have been exacerbated by Russia’s persistent attack on Ukraine.
As stated by Europa Press, Inviertis, a company that allows customers to buy have investments in housing and land, stated the short-term effect of inflation and the battle in Ukraine had affected other sectors of the international economy, like the stock market. As a result, real estate has become an attractive place to investors because of its solvent refuge valuation against uncertainty.
Several investors have transferred cash from riskier investments, like equities and cryptocurrency to find security in the property sector. Rebeca Pérez, Founder and CEO of Inviertis, provided the following explanation:
“Investors are selling all they own on stock market and moving their money into real estate in order to protect their holdings, a scenario that was exacerbated since Russia invaded Ukraine.”
Cryptocurrency Is Becoming More Popular In Estate Industry
Usually, real estate has attracted small investors who are not entirely into cryptocurrency trading activities. However, due to the fall in currency valuation, investors are starting to turn to digital currencies in property investment, with this pattern becoming more pronounced in the past two months.
“The biggest benefit of utilizing cryptocurrency to purchase real estate is that you change a hazardous investment into one that is conservative. If you were fortunate enough to join the crypto world in 2012, for example, you may buy a property for the €200 that was available at the time,” Perez stated.
However, concerning administrative issues, she stated that “downsides exist like how to determine the bitcoin price, how to complete a transaction, correctly notify the notary, and how to standardize a crypto transaction with the Public Treasury.”
Usage Of Cryptocurrency In Real Estate Still In Its Infancy
As Vicenç Reche, a financial adviser to Inviertis, has admitted, the use of cryptos in the property market is “still in its infancy.”
“Certainly, as the usage and adaption of cryptocurrencies by middlemen, financial institutions, registrars, and asset registrars grows, we will be able to see a greater spread of their usage,” Reche added.
Also, in the United States, the manager of the popular artist Justin Bieber recently sold his mansion in BTC for over $18.5 million. Meanwhile, New York-based real estate firm Algocap Real Estate revealed in 2021 that it would begin accepting virtual currencies such as Dogecoin, Bitcoin, and Ethereum for payments in the future.