This article is for informational purposes only and is not investment advice.
The Silent Revolution of the Real Estate Market
The world of real estate investment is undergoing a major transformation with the emergence of cryptocurrencies as a means of acquisition. In 2024, over 15,000 real estate transactions involving cryptocurrencies were recorded worldwide, representing a value of more than 4 billion euros. This figure, up 240% from 2021, reflects an accelerating trend. In France, although the phenomenon is more recent, the first real estate sales in Bitcoin made headlines in specialized media.
Investing in real estate with cryptocurrencies is no longer science fiction but has become a legitimate investment strategy that more and more market players are seriously considering. This marriage between the oldest asset class (real estate) and the newest (cryptocurrencies) opens up unprecedented opportunities for investors.
Whether you are an early Bitcoin adopter looking to diversify your portfolio or a real estate investor curious about the new opportunities offered by cryptocurrencies, this article will guide you through the intricacies of this innovative approach, its advantages, risks, and best practices to adopt in 2025.
Why do real estate and cryptocurrencies work so well together?
A favorable context for the emergence of new practices
The traditional real estate market, often perceived as rigid and bureaucratic, faces several challenges: long and complex acquisition processes, high intermediary fees, and difficulties with cross-border investments. At the same time, cryptocurrency holders are seeking opportunities to use their digital assets in the real economy, beyond mere speculation.
This convergence of interests has created fertile ground for the development of solutions that allow investing in real estate with cryptocurrencies, simultaneously addressing the needs of both markets.
The democratization of cryptocurrencies
With over 420 million cryptocurrency users worldwide in 2024, the mass adoption of these digital assets has reached a critical point. Major cryptocurrencies like Bitcoin and Ethereum have gained legitimacy and relative stability, with the global crypto market capitalization exceeding $3 trillion.
This democratization has led to the emergence of a new investor profile: the “crypto-wealthy,” who hold significant digital portfolios and seek to diversify their holdings into tangible assets like real estate.
The internationalization of the real estate market
The globalization of the real estate market has accelerated, but international investments remain hindered by challenges related to cross-border fund transfers: delays, high banking fees, and exchange rate risks.
Cryptocurrencies, by their very nature, transcend borders and allow for near-instantaneous transfers, offering an elegant solution to these issues. A French investor can now buy real estate with Bitcoin in Dubai, Lisbon, or Miami without the usual constraints of international transactions.
How does real estate investment with cryptocurrencies work?
Different approaches to crypto-real estate investment
There are several ways to invest in real estate with cryptocurrencies, each suited to different profiles and investment objectives.
The first approach involves the direct purchase of real estate. The investor uses their cryptocurrencies directly to acquire a property. The process begins with identifying a seller who accepts cryptocurrencies, followed by negotiation and agreement on the price. The transaction is typically conducted through a trusted third party like a notary or specialized lawyer. After transferring the crypto assets to the seller’s digital wallet, the local administrative procedures are finalized. In February 2024, a villa in Cannes was acquired for 350 ETH (approximately 1.2 million euros at the time of the transaction) through a specialized notary who oversaw the conversion to euros at the time of the deed signing.
The second approach involves tokenized real estate investment platforms. Real estate tokenization involves representing the ownership of a property or a fraction of a property as digital tokens on a blockchain. This innovation allows for fractional investments (sometimes starting at €100), increased liquidity compared to traditional real estate, the elimination of many intermediaries, and greater transparency and traceability of transactions. Platforms like RealT, Tokeny, and SolidBlock offer access to tokenized real estate investments in several countries.
Finally, specialized real estate investment funds are beginning to accept cryptocurrencies as a means of entry. These funds purchase, manage, and develop real estate portfolios, allowing crypto holders to diversify their investments without the complexities of direct management. BrickMark and Crypto Real Estate AG are among the pioneers in this sector in Europe.
The technical process of a real estate transaction with cryptocurrencies
Conducting a real estate transaction involving cryptocurrencies requires a clear understanding of the technical aspects. Before any transaction, it is essential to verify the legality of the operation in the relevant jurisdiction, ensure that both parties understand the tax implications, and establish a clear protocol for managing price fluctuations between the agreement and finalization.
To secure the transaction, several mechanisms exist. Smart contracts, programmed on blockchains like Ethereum, allow for the automatic execution of the transaction once certain conditions are met. Escrow services specialized in crypto-real estate transactions secure funds until the sale is finalized. Some notaries, particularly in France, have also trained to support this type of transaction.
Depending on local legislation and the seller’s preferences, two approaches are possible regarding cryptocurrencies: either an immediate conversion to fiat currency at the time of the transaction, which limits exposure to volatility, or the seller retains the cryptocurrencies, assuming the risk of fluctuation but also the potential for capital gains.
Advantages and disadvantages of real estate investment with cryptocurrencies
Significant advantages
Crypto-real estate investment significantly reduces transaction times. While an international real estate transaction can take several weeks or even months, a cryptocurrency transaction can be completed in a few hours or days. This speed is explained by the absence of banking delays for international transfers, the 24/7 availability of blockchain networks, and the reduction of redundant checks thanks to blockchain transparency.
Traditional real estate transactions involve numerous intermediaries, each taking their commission: real estate agents (5-10%), banks (processing fees, exchange fees), insurers, etc. Cryptocurrency transactions significantly reduce these fees, with blockchain transaction costs generally below 1%, the possibility of direct transactions between buyer and seller, and the elimination of exchange and international transfer fees. On average, an investor saves between 3% and 8% of the total transaction amount by using cryptocurrencies instead of traditional channels.
Investing in real estate with cryptocurrencies also opens the market to investors worldwide, without the usual constraints of local banking systems. This feature is particularly advantageous for investors from countries where access to international credit is limited, expatriates looking to invest in their home country, and investors seeking to geographically diversify their real estate portfolio.
The tokenization of real estate assets may represent the most revolutionary advantage, allowing access to real estate investment with reduced amounts, increased liquidity, the ability to easily diversify one’s real estate portfolio, and total transparency on ownership history and valuation.
Challenges and disadvantages to consider
The sometimes extreme volatility of cryptocurrency prices is the main challenge for real estate transactions. In 2023, Bitcoin experienced fluctuations of over 30% in some 30-day periods. This volatility can be problematic for real estate transactions, which typically span several weeks.
To mitigate this risk, it is possible to fix the price in fiat currency with conversion at the exact time of the transaction, use stablecoins pegged to fiat currencies (USDT, USDC, EUROC), or implement exchange rate hedging mechanisms.
The legal framework surrounding real estate transactions with cryptocurrencies is still under construction in many countries. In France, although legal, these transactions raise several questions regarding the legal qualification of cryptocurrencies (considered as intangible movable property according to recent case law), the validity of smart contracts in the face of traditional real estate law, and the requirements for traceability and anti-money laundering. These uncertainties typically require the intervention of lawyers specialized in both real estate law and digital asset law.
Cryptocurrency transactions also carry specific technical risks, such as the risk of errors in the destination address (transactions being irreversible), the risk of losing access to private keys, potential vulnerabilities in smart contracts, and the risk of hacking exchange platforms. Implementing rigorous security protocols is therefore essential to secure these high-value transactions.
Case studies: when theory becomes reality
Examples of real estate acquisitions made with cryptocurrencies
In September 2023, a blockchain technology entrepreneur acquired a 450m² villa in Monaco for 31 BTC (equivalent to approximately 1.8 million euros at that time). The transaction involved a prior agreement on the price in euros with an exchange rate fixing clause, the intervention of a Monaco notary trained in cryptocurrency transactions, and the immediate conversion to euros by the seller. The total transaction time was only 5 days, compared to the usual 2-3 months. This sale demonstrated the efficiency of cryptocurrencies for luxury real estate transactions, even in conservative jurisdictions like Monaco.
In March 2024, a consortium of investors acquired an office building in Berlin for 320 ETH (approximately 1.1 million euros). The uniqueness of this transaction lay in the use of a smart contract to secure the entire process, the retention of payment in ETH without conversion to euros, the issuance of tokens representing shared ownership among the various investors, and the automation of rental income distributions via the blockchain. This case illustrates how real estate investment with cryptocurrencies can not only facilitate acquisition but also transform post-acquisition management.
Innovative projects combining real estate and cryptocurrencies
Propy has developed a comprehensive platform that allows the entire real estate purchase process to be conducted via blockchain. Their innovations include legally validated smart contracts in several jurisdictions, the registration of property titles on the blockchain, a secure payment system accepting over 12 different cryptocurrencies, and an international real estate marketplace. In 2023, Propy facilitated over 100 million euros in real estate transactions involving cryptocurrencies.
RealT has revolutionized access to real estate investment by offering the tokenization of residential properties in the United States, investments accessible from $50, rental income automatically distributed via the blockchain, and increased liquidity through secondary markets. By the end of 2024, over 15,000 investors worldwide had participated in the acquisition of more than 200 properties through this platform, allowing cryptocurrency holders to easily access the U.S. real estate market.
Legal and tax aspects: navigating a complex environment
Legal framework for real estate investment with cryptocurrencies in France
France has gradually clarified its approach to the use of cryptocurrencies in real estate transactions. Cryptocurrencies have been legally recognized as “digital assets” since the PACTE law of 2019. This qualification allows their use as a means of exchange for real estate, under certain conditions: compliance with identification obligations (KYC), declaration of transactions to tax authorities, and adherence to anti-money laundering rules. The notary, a central figure in French real estate transactions, can legally oversee a cryptocurrency transaction, although the practice remains relatively uncommon.
The Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR) have issued guidelines regarding the use of cryptocurrencies in real estate transactions, particularly on the need for complete traceability of fund origins, the recommendation to use registered Digital Asset Service Providers (DASPs), and enhanced vigilance for high-value transactions.
Tax implications for investors
Investing in real estate with cryptocurrencies involves specific tax considerations that are crucial to understand. The conversion of cryptocurrencies to euros for real estate purchase constitutes a taxable event. In France, capital gains realized during the conversion are taxed at a flat rate of 30% (flat tax), the obligation to declare these gains falls on the investor, and losses can be offset against other gains of the same nature. For example, an investor who acquired Bitcoin at €30,000 and used it to purchase real estate when its value reached €50,000 would have to pay a flat tax of 30% on the €20,000 capital gain.
Rental income from properties acquired via cryptocurrencies follows the standard real estate tax regime, with the micro-foncier or réel regime depending on the amount of income, the possibility of offsetting property deficits, and the application of social contributions. The particularity lies in the initial declaration of the property and the justification of the origin of the funds used for the acquisition.
For investments in real estate tokens, distributed income is generally considered as capital income, capital gains from the sale of tokens follow the regime for digital asset capital gains (30%), and the tax treatment may vary depending on the legal structure of the tokenization project.
To navigate this complex legal and tax environment confidently, it is recommended to meticulously document the origin of the cryptocurrencies used, consult a tax specialist in cryptocurrencies before any significant transaction, prefer DASPs registered with the AMF for conversion operations, plan for capital gains tax provisions when financially planning the acquisition, and retain all transaction records for at least 6 years.
Practical guide for investors: where to start?
Preparation for real estate investment with cryptocurrencies
Before diving into real estate investment with cryptocurrencies, it is important to evaluate your crypto portfolio and real estate goals. Analyze the composition of your crypto portfolio (diversity of cryptocurrencies held, age of positions and their tax impact, liquidity of digital assets), define your real estate objectives (rental investment or personal residence, investment horizon, location and type of property sought), and assess your risk tolerance (ability to withstand volatility during the acquisition process, preference for immediate conversion or retention of cryptocurrencies by the seller).
Several investment strategies are possible depending on your profile. Direct purchase suits experienced investors, with a high risk level and a minimum investment generally above €50,000. Tokenization is suitable for both beginners and experienced investors, with a medium risk level and investments possible from €100. Crypto-real estate funds cater to cautious investors, with moderate risk and a minimum investment of around €10,000. Beginners are recommended to start with tokenization platforms to familiarize themselves with this new investment paradigm before considering direct acquisitions.
Selecting partners and platforms
To secure your crypto real estate investment, evaluate platforms based on their security and regulatory compliance (registration with competent authorities, security protocols, insurance against losses), transparency and governance (complete legal documentation, clear legal structure of proposed investments, regular communication on performance), as well as their fees and liquidity (transparent fee structure, exit and liquidity mechanisms, trading volumes for tokenization platforms).
The ecosystem of advisors specialized in real estate and cryptocurrencies is rapidly developing. It is recommended to consult lawyers specialized in digital asset and real estate law, notaries trained in cryptocurrency transactions, tax advisors with expertise in crypto-taxation, and IT security consultants for the protection of your digital assets. These professionals will help you structure your investment optimally and securely.
Risk management and best practices
The volatility of cryptocurrencies is the main challenge for real estate investment with cryptocurrencies. Several strategies can help mitigate this risk, such as using stablecoins (prior conversion to USDC, USDT, or EUROC to almost entirely reduce the risk of fluctuation during the transaction), incorporating appropriate contractual clauses (setting an acceptable price range in fiat currency, adjustment mechanisms in case of significant fluctuations), or using hedging instruments (futures contracts on major cryptocurrencies, put options to secure a floor price).
To maximize technical security, prefer hardware wallets (Ledger, Trezor) for significant amounts and configure multi-signature for critical transactions. Carefully verify addresses through multiple communication channels and conduct small test transactions before major transfers. Thoroughly document your operations by taking screenshots of transactions, retaining blockchain transaction IDs, and securely archiving communications with counterparties.
Conclusion: the future of real estate investment
Investing in real estate with cryptocurrencies represents much more than a passing trend. This intersection between blockchain technology and tangible assets outlines a new investment paradigm that could transform the real estate sector in the long term.
The undeniable advantages in terms of speed, reduced fees, and international accessibility largely outweigh the current challenges related to volatility and regulatory uncertainties. As the legal framework becomes clearer and technical solutions refine, we can anticipate a growing adoption of these investment methods.
For visionary investors, the time is ripe to explore these new possibilities, perhaps starting with smaller-scale tokenized investments before considering direct acquisitions. The key is to approach this field with adequate preparation, a clear understanding of the issues, and the support of specialized professionals.
Ultimately, investing in real estate with cryptocurrencies is not just a technological innovation but a profound redefinition of our relationship with property, value, and investment. The pioneers who navigate this emerging ecosystem wisely could well be the architects of a new era for the global real estate market.
Additional resources
To deepen your understanding of this constantly evolving field, we recommend consulting the AMF guide on digital asset investments, the quarterly reports from the Real Estate Tokenization Observatory, specialized training offered by the Fédération Nationale de l’Immobilier (FNAIM) on new technologies, and online communities dedicated to crypto-real estate investment.
Feel free to share your experience or questions in the comments below, or contact our experts for personalized support in your investment project!