Spain and Europe are experiencing a boom in real estate investment. This is because investors have decided to leave riskier investments in favour of more secure options. Sources in the real estate industry claim that interest has increased 400% in crypto-based investments since November. People are buying homes in the region without ever having been there. Others are now using crypto to pay their bills.
Spain: Real estate, Crypto and Stocks
In Spain and Europe the real estate market is growing. The rising costs of inflation and the war have changed many people’s expectations about an economic recovery. Europa Press data shows that investors are rushing to purchase properties, despite not having even seen them.
To make it easier on themselves, some investors even took funds from more risky investments, such as stocks and cryptocurrency, in order to invest in properties. Rebeca Pérez, founder and CEO of Inviertis, a company that allows users to invest in rented properties in Spain, gave its take on what is happening in the real estate market. According to her,
[Investors]They are now investing in real property to protect their wealth, rather than withdrawing all of what they have on the stock exchange. This situation has only gotten worse since the Russian invasion of Ukraine.
Crypto Investments Reevaluated
Pérez believes that crypto and stock investors value real estate properties as a more stable investment that offers less fluctuation than stock or crypto markets, and also gives them the opportunity of getting in and out of the market easily due to the high demand.
Some crypto investors have also been able to buy properties with cryptocurrency, and not need to convert them into fiat money by banks. Perez says this could be attractive for investors. She said:
It is possible to turn risky investments into conservative ones. For example, if your luck was good enough in the crypto market of 2012, then you could buy a house at 200 Euros back then.
There are some hurdles to overcome when using cryptocurrencies for this type of transaction. They include setting the bitcoin price and calculating the tax due to the purchase.
This is more prevalent in Latam where many properties were already sold for crypto and the asset payment method acceptance is higher.
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