Real Estate developers in Latin America and around the world are getting on the cryptocurrency bandwagon. Adoption is slow, but buying real estate with bitcoin from real estate developers is possible in many Latin American countries including multiple land parcel projects, beachfront home developments and luxury developments available for crypto purchase in Costa Rica, Panamá, and beyond. Real estate developers are accepting bitcoin for existing and new projects.
Global trends for real estate developers accepting bitcoin
There is a global trend for real estate developers, they are beginning to move toward more mainstream acceptance of Bitcoin and other cryptocurrencies. This has caught on in Costa Rica where many savvy real estate agents are helping real estate developers sell their property for bitcoin, whether for mountain homes, beachside apartments, or stunning luxury homes in the city.
For many, the outlook for buying and selling real estate for cryptocurrency is bright, despite the regulatory challenges.
In Miami, the Arte exclusive boutique condominium in Miami’s Surfside neighborhood, has announced that it will be first new residential development in Miami to accept cryptocurrency as a form of payment. The developer has indicated optimism for the city’s future as the cryptocurrency capital of the world, all remaining residences can be purchased with digital currency. In September, Magnum Real Estate began accepting bitcoin as payment for a three-store retail condominium in Manhattan’s East Side. They were the first New York company to accept crypto for its prime real estate.
In October 2021 a major real estate developer in Bali began officially accepting crypto. Finns Bali, a leading lifestyle brand and real estate developer, announced it will accept cryptocurrency in a unique sale of luxury smart-homes and villas, allowing crypto holders the freedom to convert their digital assets into fully-managed property through secure transactions.
“People around the world looking to reap the rewards of investing early in cryptocurrency are discovering they’re faced with no reliable option to convert their crypto into something they can actually use; Finns Lifestyle Village will fill that gap.”Beau Whittington, Chief Strategy Officer at Finns Bali.
Investors will be able to convert their cryptocurrency holdings into tangible assets at Finns Lifestyle Village, the island Trip Advisor calls the world’s most popular destination in 2021. The purchase of these development properties with bitcoin or other cryptocurrencies could carry a surcharge. For example, real estate purchases with Bitcoin and Ethereum would have a 1% surcharge, while USDT wouldn’t have any fees.
Crypto-holders who typically convert their holdings into fiat currency—shouldering additional tax responsibilities, third-party broker fees, and price fluctuations during the transaction processes—will work directly to complete secure, private transactions that adhere to regulatory protocols to protect both buyer and seller. The developer will pay all taxes on the transaction, ensuring a compliant and simplified process. In addition to direct crypto sales, the developer has partnered to offer investors the opportunity to buy fractions of apartments and villas, becoming the first blockchain in the world to tie fractionalized NFTs (F-NFTs) to real estate and property.
In Latin America, individual developers, construction companies, and real estate agents are more and more active with bitcoin and other cryptocurrency transactions. Much of this below the radar as each country takes on the regulatory hurdles of decentralized finances and trying to incorporate crypto into their financial supervision model.