It has become increasingly clear that cryptocurrency will continue to make its way into real estate transactions. While Bitcoin and other mediums are not yet accepted in most places, here are five cities around the globe where Bitcoin, the most well-known cryptocurrency, is making moves in the real estate industry.
1. Lake Tahoe, California
One of California’s famous vacation destinations, Lake Tahoe set a record in 2013 for the most significant Bitcoin-driven real estate transaction when an undeveloped, 1.4-acre property on a 42-site resort sold for $1.6 mln, or 2,739 BTC to an anonymous buyer.
While this transaction didn’t spark a surge in Lake Tahoe’s real estate transactions involving Bitcoin, the purchase, which was reportedly the buyer’s idea, demonstrates the potential role digital currency can play in both commercial and residential sectors.
2. Bali, Indonesia
Indonesia was surprisingly one of the first locations to support Bitcoin-backed real estate transactions with an unnamed buyer purchasing a villa in Bali for over 800 Bitcoins, valued at approximately $500,000 at that time. While listings in the commercial and industrial markets have yet to catch the trend, buyers and real estate agents in the residential sector continue to be quite comfortable using Bitcoin in transactions.
3. New York, New York
Real estate agents and investors in the Big Apple have already begun taking on the risky bet of using Bitcoin in real estate transactions. Magnum Real Estate, a team out of Manhattan, accepts Bitcoin for purchases and deposits of recently converted apartments. This entrepreneurial-minded city is known for taking risks, and already has condos and homes available for Bitcoin. While they haven’t as of late, commercial buildings will follow this trend.
4. Dubai, UAE
Not to be outdone by the United States, Dubai has also begun capitalizing on growing Bitcoin use. Transactions using Bitcoin are more than a growing trend here; they are encouraged. Recently, a developer announced plans for a joint commercial-residential development located on the Isle of Man. This project, valued at $325 mln. Has sold units using modern currency, but has reserved all remaining residential properties for Bitcoin purchases. As in the markets mentioned on this list, commercial units are still only sold using modern currencies.
5. Miami, Florida
Shortly after it launched in 2009, Miami’s tech-savvy investors, buyers, and real estate agents began using Bitcoin. Recently, a man made headlines after selling his Coral Gables home for approximately 1,600 BTC – over $6 mln at the time. These transactions are a regular component of the real estate industry in South Florida. Bitcoin’s international reach has been cited by realtors in the area as a primary factor in the increased interest in the region, and expect the transactions and market to continue to flourish.