A few years ago, the idea of buying or renting real estate using cryptocurrencies was almost unimaginable, especially for the overly traditional Spanish market. Today it is more than a reality.
With a total market capitalization of over a trillion dollars, cryptocurrencies have become one of the key alternative currencies in the global economy. Despite some dubious types of investments based on crypto technologies, they continue to carve a niche for themselves in more and more new segments of the economy.
An example of a new crypto business in the Spanish real estate market is Reental. This is a Spanish startup that was one of the first to try to seriously tokenize Spanish real estate. Recently, it closed his first deal for the sale of the "Sevilla 1" object, which offered the buyer two bedrooms, a kitchen and a bathroom. Standard set.
The house sale price reached 68,000 euros, which is almost 9% higher than the original price. This transaction became the starting point for the real estate market to start seriously and actively introducing a new method of payment for purchases. Since its inception, the company's capitalization has grown by 24%.
Alberto Hernandez, head of digital Technology at CBRE Spain, uses the example of Reental as evidence that "tokenization can be an attractive alternative for both managers and end users". Reental is an investment asset, the slogan on their website reads: "We will find you the perfect offer that combines the best profits with minimal risks". Now there are 33 objects on sale on the platform.
Eric Sanchez, CEO of Reental, points out: "We are still in the early stages of development and we have to gain the trust of the market". He adds that so far the key category of clients are either enthusiasts or people who are looking for unorthodox ways to diversify their asset portfolios. Their offers are also suitable for those who do not have large savings or the strength / means to hire a management company that will profit from their real estate.
In the case of Rental, clients can invest in real estate from 100 euros, while being anywhere in the world. In fact, the company's investors are quite diverse. There are both citizens of Spain and Spanish-speaking countries, as well as customers from the other side of the planet. Inflation and the coming recession are bringing people together today from the most unexpected places. They are all in a panic looking for new ways to secure their savings.
For experts like Hernandez, tokenization of real estate looks like a reasonable alternative to traditional investment assets currently available on the market. The advantage is a low entry threshold and a high degree of profitability. The downside is the riskiness and the insufficiently developed legislative field for these types of investments.