Real estate investment is thriving in Europe, especially in Spain, as investors exit the riskier investments for safer bets. Sources indicate that interest in these instruments have shot up by 400% since November 2021 as more people buy homes without even having visited. Some are making payments with cryptos.
Real Estate on the Rise, Stocks and Cryptos Slump
The real estate market is growing rapidly in Europe because of the fast-rising inflation and conflicts, which have altered the predictions that people had earlier on in the year. According to the Europa Press, interest in real estate has shot up by about 400% since November 2021. Investors are now buying without even having ever seen them.
Rebeca Perez, the founder, and CEO of Inviertis, a firm that allows people to invest in rented houses, indicated that people are taking away money from stocks or other riskier assets and putting it in properties.
Cryptocurrencies Investment Re-evaluated
Perez holds that stocks and crypto investors see real estate as a more stable option because of limited fluctuations. Real estate also offers them the opportunity to get in and out of the market with ease because of the growing demand.
The growing interest is also driven by some crypto investors targeting to buy properties directly with crypto assets without first converting to fiat money. This can be very attractive because of the legal hurdles involved in conversions.
When buying properties with cryptos, there are a number of hurdles that need to be simplified. For example, calculating tax based on the price and determining the price in Bitcoin or other cryptos can be tough because of high volatility.
In Latam, there are a number of properties that have already been paid using cryptos.