Elevating Luxury Real Estate with Faster Payments

XEROF's Essential Role in Buying Luxury Real Estate

There has been a noticeable increase in the acceptance of cryptoassets as a reliable and beneficial method of payment in the luxury real estate sector. High-end luxury property sellers are tapping into this new revenue stream and increasing their clientele. 

This article explores the transformative power of accepting cryptoassets in real estate transactions, highlighting the success of estate agents and XEROF's role in empowering one agent to increase revenue.

The Rise of Cryptoasset Payments in Luxury Real Estate

In 2023, the global count of digital currency holders surpassed 420 million, with the United States leading the worldwide cryptoasset market in market capitalisation. Notably, the United Arab Emirates boasts the highest ownership, with 27% of its population holding some form of cryptoasset.

To meet the needs of the increasing number of holders of cryptoassets, many real estate agents are broadening their services in light of this. Adapting services to facilitate cryptoasset payments opens up a new client base and revenue stream, especially in the high-end real estate sector. It provides agents with a competitive edge in meeting the diverse preferences of modern property buyers.

Real estate agents are adapting their services to cater to the increasing number of cryptoasset holders, offering a direct pathway for them to invest in property. This approach allows cryptoasset holders to realise the tangible value of their assets, diversify their wealth into real estate, and take advantage of opportunities like Golden Visa schemes. Agents tap into a high-end market by accepting cryptoassets as a legitimate means of payment, gaining a competitive edge and establishing a new revenue stream. This not only meets the evolving preferences of clients but positions real estate agents as pioneers in the intersection of cryptoassets and real estate.

Key Market Trends You Should Know About

1. Global Cryptoasset Adoption: Cryptoassets have gained widespread acceptance globally, with a market capitalisation exceeding trillions of dollars. High-net-worth individuals and institutional investors increasingly diversify their portfolios by allocating funds to cryptoassets, and cryptoasset holders often seek to diversify some of their wealth into other asset classes, such as property.
2. Increased Investor Interest: Investors are drawn to the potential of cryptoassets as a store of value and a means of diversification. This heightened interest extends to luxury real estate, creating a demand for property sellers to accommodate these investment preferences.
3. Increased Importance of Regulatory Compliant Solutions: Due to increased involvement from regulators, there is a growing demand for service providers that not only offer innovative solutions but also adhere to regulatory compliance, providing a secure and professional environment for investors, which is where XEROF comes in.

Advantages of Digital Currency in Purchasing Real Estate

There are many advantages of using cryptoassets to purchase real estate; two key benefits include:

Wide Choice of Currency Options

Integrating digital currency for real estate transactions offers advantages to buyers and sellers. One key benefit lies in the flexibility of currency choice. Cryptoasset holders can purchase properties using their preferred digital currencies, while sellers have the option to receive payments in traditional fiat. By acting as a bridge between the two parties, XEROF's service ensures that the transaction completes smoothly, accommodating the diverse currency preferences of each participant.

Significant Reduction of Friction During the Exchange Process

Moreover, XEROF's service significantly reduces the friction of exchanging cryptoassets and fiat, streamlining the transaction process. This results in a fast and compliant transaction and extends to critical yet often overlooked elements, such as settling with third parties like Notaries. Removing pain points in the transaction flow enhances the overall experience, making the process both efficient and secure.

Empowering Real Estate Transactions with Crypto Assets: A Case Study with XEROF

Since 2012, XEROF has been pioneering using cryptoassets for real estate transactions. Our work has helped cryptoasset holders access the property market frictionlessly and compliantly whilst also allowing real estate companies to access this lucrative niche and create new revenue streams. In a recent success story, XEROF collaborated with an estate agent seeking to expand their clientele and revenue streams by accepting cryptoasset payments for luxury properties.

Success Story: Increasing Revenue with Cryptoasset Payments

Background:

The luxury real estate agent sought ways to stand out and attract a diverse range of clients, including those who preferred conducting transactions with cryptoassets.

XEROF Collaboration:

XEROF facilitated the integration of cryptoasset payment options for the estate agent through a partnership model which blended the business process of the property purchase with our expertise as a Swiss-based, regulated and compliant brokerage supported by Switzerland’s premier private banks. Through this partnership, accepting cryptoasset payments for real estate transactions was made both frictionless and compliant with all KYC and AML regulations.

Results:

• Expanded Clientele: By embracing cryptoasset payments, the estate agent opened the door to a broader clientele, including tech-savvy investors and international buyers with cryptoasset holdings.
• Increased Revenue Streams: The ability to accept cryptoassets translated into increased revenue streams for the estate agent, leading to a significant sales increase.
• Competitive Edge: By offering a cryptoasset payment option, the estate agent now has a competitive edge in a market where innovation and adaptability are crucial to staying ahead.

Thanks to the strategic partnership with XEROF, the luxury real estate agent successfully integrated cryptoasset payment options into their business model, aiming to diversify their clientele. This collaboration not only attracted a global investor influx, particularly from tech-savvy millennials but also yielded operational benefits, streamlining transactions for efficiency and cost savings. The real estate agent's positive public perception and enhanced brand image as an industry innovator contributed to increased trust and credibility. 

Embracing cryptoasset payments showcased adaptability, positioning the agent as a leader in anticipating and navigating industry trends, ultimately future-proofing their business in a rapidly evolving real estate landscape.

Real-Life Examples of Cryptoasset Property Transactions

Cryptoassets are reshaping the real estate industry; in 2023, Spain, Dubai, and Switzerland offer appealing opportunities for digital currency property investments, with this trend rapidly expanding. Below are examples of recent cryptoasset property transactions from around the world:

1. Ukraine Flat

A real estate platform based on blockchain technology recently enabled the sale of an apartment in Ukraine to a buyer residing in New York. The complete property transaction, including the agreement, payment, and transfer of title deed, was executed seamlessly on the Ethereum blockchain through a smart contract.

2. Miami Beach Penthouse

A Miami Beach penthouse at Arte by Antonio Citterio exchanged hands for $22.5 million in cryptoasset equivalence. It became one of the industry's most talked about digital asset real estate deals.

3. Flat in Braga, Portugal

Last year, in Braga, two men finalised the purchase of a €110,000 apartment using nearly three BTC. The seller provided his cryptoasset wallet address, and the buyer completed the transaction. The Portuguese Chamber of Notaries president, Jorge Silva, and a real estate agent observed the process. Portugal's lack of capital gains taxes for digital assets attracts many cryptoasset investors.

Why Real Estate Agencies Should Choose XEROF?

XEROF is regulated and offers various cryptoasset services, including facilitating high-value real estate transactions. Our ability to settle a transaction from digital currency to fiat into a third-party account means users can easily purchase property with cryptoassets through the platform and monitor the real estate transaction process.

When customers exchange digital assets for fiat, the funds are held safely in segregated wallets. Clients can use cryptoassets for real estate transactions with confidence by selecting XEROF.

Learn More About Cryptoasset Payment Facilitation for High-End Living

The success stories and market trends discussed exemplify the transformative potential of cryptoasset payments in the luxury real estate market. With the global adoption of digital currencies, real estate brokers are in a unique position to lead the way in innovation and draw in a new clientele of high-net-worth individuals. Real estate agents who embrace cryptoassets by becoming early adopters will likely reap long-term rewards. 

To learn more about facilitating cryptoasset payments, contact us to arrange a meeting.