Due to rising inflation costs and war, the real estate market in Spain and Europe has grown since last year. This has changed some of the economic recovery predictions. According to numbers by Europa Press, interest in the real-estate market has increased 400% since November. Many investors are now looking to buy properties without ever seeing them.
Investors have taken money from riskier investments such as stocks and cryptocurrencies to seek refuge in the property market. Rebeca Perez is the founder and CEO at Inviertis. This company allows users to rent properties in Spain. She said:
[Investors] are putting their money on the stock exchange and investing in real property to protect their assets. This situation has only worsened after the Russian invasion of Ukraine.
Revaluation of Crypto Investments
Perez believes that stock and crypto investors should value real estate properties because they offer stability and less volatility than stock and crypto markets. They also have the ability to get in and out of the market quickly due to high demand.
Some crypto investors have also been able to buy properties with cryptocurrencies and not need to exchange them for fiat currency using banks. Perez said that this can be very attractive for some investors. She explained:
It is possible to turn a risky investment in to a prudent one. If you are lucky enough, you could buy a house for 200 euro back then, if you entered the crypto world in 2012.
There are still some hurdles to overcome when using cryptocurrencies for this type of transaction. They include setting the price in bitcoin, or any other cryptocurrency, and calculating the taxes that will be due.
These types of operations are more common in Latam , many properties were already sold for crypto and there is more acceptance of these assets as payment methods.