Alicante gives Spain the opportunity to get close to world leadership in combining cryptocurrencies and the real estate market

Alicante gives Spain the opportunity to get close to world leadership in combining cryptocurrencies and the real estate market

As unexpected as it may sound, some data indicate that about 16% of Spaniards own cryptocurrencies in one way or another. And this indicator is the result of an increase of 4% over the past year.

Of course, in comparison with some other countries of the world, this share may seem quite small, and Spain is quite far from international leadership, nevertheless, the country is leading in another direction. We are talking about the introduction of cryptocurrencies into the real estate market and the increase in the number of opportunities to purchase housing in the country for both Bitcoin and altcoins like Ethereum, Litecoin, Ripple and Tether.

The Forex Suggest company recently presented a report on the introduction of cryptocurrencies into the real estate sector in Spain. It states that at the time of publication, 289 ads for the sale of real estate with the possibility of payment via cryptocurrency were opened on the Spanish market. Spain's closest rival is Thailand with 227 sites.

What is the reason for Spain's hegemony in this sector? Predictably, but everything again rests on foreigners, the international attractiveness of the Spanish market and the developed tourism sector. Just look at where most of the properties for buying with cryptocurrency are located: the Valencian community with the province of Alicante, Andalusia with the province of Malaga and Catalonia with the province of Barcelona. All three regions are the most popular places to move and relax among Europeans, who are the majority among foreign buyers and tenants of Spanish real estate.

Tokenization of real estate

Real estate investments are often singled out today as a safe way to save money against the background of inflation and general economic instability. In many ways, the discussion is about real estate as a kind of "piggy bank", and we see how this mood manifests itself in the field of crypto-mobility.

The vast majority of tokenized assets are luxury housing, villas and mansions. These are objects inaccessible to the general buyer, which have little liquidity to be an effective tool for earning. These objects are designed for extremely wealthy buyers who need objects in which they can add up their incredible fortunes and not touch them for quite a long time. The average cost of such objects is about 75 bitcoins or almost 2 million euros at the current exchange rate.

Cryptocurrencies are also used in projects designed to democratize access to real estate as an investment tool. An example of such a project is the company Reental, operating in Spain since February 2021. The objects of Reental and similar companies are real estate for shared ownership. The property is divided into equal parts and "digitized", that is, each share is assigned a specific token reflecting a part of the total price of the asset. The minimum amount for investment is 100 euros.

In two years, the company has tokenized real estate for 5 million euros. Each project and its shares are sold out in a matter of hours and even minutes from the moment they enter the market. The company is engaged in the operation of facilities and the income from them is distributed as a percentage corresponding to the percentage of ownership of the facilities at the disposal of the investor. for example, a 10% ownership stake allows you to receive 10% of income. Reental is a modern version of the already familiar real estate investment crowdfunding or investment fund.

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