Discussions about cryptocurrencies and real estate transactions are becoming increasingly common, even in Italy. This trend is redefining how people buy and invest in the luxury sector, offering new opportunities to a sophisticated and innovation-conscious clientele.
At the same time, the virtual properties trend is gaining more attention, with virtual real estate opening up innovative scenarios for digital investors. Learn more about luxury real estate in the Metaverse, including tokenized real estate investments, virtual prestige homes, and proptech.
The First Real Estate Sales in Bitcoin
The world’s first real estate transaction using Bitcoin was in September 2017 in Austin, Texas. In Italy, the first sale of a property with cryptocurrencies took place in early 2018 in Turin, followed shortly by a similar transaction in Rome. These events marked a turning point for crypto real estate, proving the practical application of cryptocurrencies in luxury property purchases.
So, can you buy real estate with cryptocurrency? From a legal standpoint, the Italian Revenue Agency clarified the matter with resolution No. 72/E on September 2, 2016, officially recognizing digital currencies as a valid and legal payment method. This statement established the basis for integrating cryptocurrencies into the Italian real estate market, legitimizing their use in property transactions.
Buying a House with Bitcoin: All the Advantages
Cryptocurrencies in luxury real estate offer many advantages, including transaction speed, blockchain transparency, and access to a global market.
This system makes real estate transactions fast, eliminating intermediaries and reducing associated costs. Moreover, the security and transparency provided by blockchain technology ensure that every transaction is verifiable and immune to fraud. Buying a house with cryptocurrencies allows investors and buyers to enter global real estate markets without traditional barriers such as currency conversion or time-consuming bureaucratic processes.
Interest in cryptocurrency payments is also increasing in the tourism sector. Airbnb revealed that the top feature requested by users in 2022 was the ability to pay for bookings with cryptocurrency, indicating a growing demand for digital transactions in real estate as well.
This presents new opportunities for investors to diversify their portfolios and access prestigious properties innovatively and securely.
Watch our Dreamer Talks video to discover all the steps to buy a property in Italy.
New Frontier of Cryptocurrencies in Real Estate
As the cryptocurrency market grows, some investors are using their digital assets to purchase properties. Although still a niche trend, this practice is particularly popular in technologically advanced economies with competitive real estate markets.
What’s happening?
- Direct payments. Some sellers accept Bitcoin or Ethereum for real estate purchases, attracting international and tech-savvy buyers.
- Tokenized real estate. This model allows properties to be divided into digital shares that can be purchased via blockchain, democratizing access to real estate investment.
- Smart contracts in real estate. Blockchain-based smart contracts enhance transparency and security in property transactions by automating processes, such as ownership transfers and tax management.
In the United States, for example, a house in Connecticut was listed for sale in 2022 for 6.5 million dollars in cryptocurrencies, showing how crypto real estate is becoming an increasingly established reality. In Europe, the trend is just as evident: a luxury villa in Marbella was put on the market for 1.75 million euros, equivalent to 80 Bitcoins, signaling a growing interest in cryptocurrency real estate investments.
Italian Real Estate Market and Cryptocurrencies: Data and Trends
The cryptocurrency market in Italy reached a value of 2.22 billion euros, reflecting a 64% increase from the previous year. Investments rapidly grew in the first six months of 2024, hitting 2.9 billion euros before stabilizing.
Cryptocurrency in real estate is still in its early stages, but the growing interest from buyers and investors suggests that this trend will continue to grow. With blockchain technology support and clearer regulations, the Italian real estate market could become a hub for cryptocurrency transactions.
Did you know Italy is becoming a tax haven for luxury real estate? Read the article Luxury Real Estate in Italy: High-end Homes, Low Taxes.
What’s Next? The Future of Luxury Real Estate and Cryptocurrencies
The integration of cryptocurrencies in the Italian real estate market represents a significant shift, especially in the luxury segment. Prestigious properties, often sought after by international investors, can benefit from the speed and efficiency of crypto transactions. As regulations evolve and market acceptance increases, cryptocurrencies will likely become a part of high-end real estate investment strategies.
Our team of experts is available to assist international buyers, sellers, and investors at every stage of the process: between consulting and real estate brokerage, read here about all the exclusive services of Dreamer specializing in luxury real estate.
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