Real estate tokenization is quickly becoming a popular way to purchase properties with cryptocurrency. A recent study by Forex Suggest found that Spain is the country with the most properties available for crypto, followed by Thailand, Portugal, and the UAE. The report also found that Canada had the most expensive prices of properties available to buy with crypto, averaging almost 250 bitcoin per property, while properties in the Philippines had an average price of a little more than 15 bitcoin.
The acceptance of crypto for real estate payments has been steadily growing, with several platforms opening the doors to list prices in crypto since last year. In Aug. 2021, one of the first reported real estate sales paid in crypto happened in Venezuela, when an apartment was sold using Tether’s USDT. In the same way, sales in Chile and Colombia were reported to be settled using bitcoin last year.
Now, Oman is set to incorporate real estate tokenization into its virtual asset regulatory framework. According to an advisor with the Oman Capital Markets Authority (OCMA), the tokenizing of real estate will open investment opportunities for local and foreign investors. This move is expected to further increase the popularity of real estate tokenization, as it will provide a secure and regulated environment for investors.
Real estate tokenization offers a number of benefits, such as avoiding the associated costs of transferring and paying with fiat currency, especially if the properties involved are located overseas. However, there are also some drawbacks, such as the low availability of mortgage lenders willing to accept cryptocurrency as a deposit, and the current stringent regulatory framework in countries like the U.K., which might bring additional paperwork to the process.
Overall, real estate tokenization is becoming an increasingly popular way to purchase properties with cryptocurrency. With Oman set to incorporate it into its virtual asset regulatory framework, it is likely that more countries will follow suit in the near future.