BARNES forerunner in cryptocurrency real estate sales in Miami

The BARNES Miami office has just completed a record-breaking cryptocurrency sale in a market where this payment method is increasingly in demand.

Miami (Florida-USA) is on its way to becoming the cryptocurrency capital of the world. A movement encouraged by its mayor, Francis Suarez, who envisages in the short term that the inhabitants of Miami can receive their salaries or pay their taxes in cryptocurrencies. On the real estate front, Enzo Rosani, managing partner of BARNES Miami, has just completed the 2nd largest transaction in Florida ever in crypto-currency, for an amount equivalent to $7 million (6.3 million euros). « This 650 sqm duplex apartment, located in Marquis Residences, one of the most prestigious addresses in Miami Downtown, has direct access to a private beach and offers extraordinary panoramic views of Biscayne Bay », explains Enzo Rosani. « For generally young entrepreneurs who have made a fortune in cryptocurrencies, the question doesn't arise. This is how they want to pay for everything from a restaurant bill to a multi-million dollar real estate transaction ».

The Marquis Residences duplex sold in 24 hours for slightly more than its listing price ($6.945 million). And it took less than 15 days for the transaction to be officially recorded. In this case in Ethers (ETH) converted into USDC, a cryptocurrency indexed to the dollar (1 USDC = $1).

This procedure is extremely simple in the United States: at the heart of the transaction is a lawyer who will represent the buyer and the seller by opening an ETH account dedicated to this operation. At closing, the buyer can choose to keep the ETH or convert it into dollars, in full transparency. « The stability of the USDC makes the transaction secure for both the seller and the buyer », continues Enzo Rosani. « Above all, it eliminates the fears associated with the volatility of the Bitcoin price, for example ».

The associate director of BARNES Miami estimates that within 5 years, 30 to 40% of real estate sales will be made in cryptocurrencies in the United States: « These transactions are a guarantee of security and speed, while eliminating the bank fees associated with traditional money transfers ».

Miami, which is ranked first in the world's most attractive cities in the BARNES Global Property Handbook 2022, is establishing itself as one of the international capitals of new technologies: in 2021, 9.39% of its assets were working for startups!

« Miami is itself a start-up. We have been quietly building a financial backbone that supports entrepreneurs and businesses for 10 years ». Francis Suarez, Mayor of Miami.

« BARNES Miami is at the forefront of this movement, both for local and European clients. In recent months, we have seen a surge in requests from British, French and Spanish buyers for properties sold in cryptocurrencies, »  adds Enzo Rosani. Miami is indeed the perfect place to invest safely, on a solid and buoyant market. Moreover, more and more real estate developers are spontaneously offering it in the new ».

Is buying real estate in cryptocurrencies possible in France?

Nothing prohibits in principle a real estate purchase in cryptocurrency in France, provided that the seller and the buyer agree on this point. On the other hand its implementation is still tricky:

« The notary is not allowed to accept cryptocurrencies as a means of payment for a real estate sale, explains the lawyer specializing in Real Estate Law Gabriel Neu-Janicki. This implies that the payment is made outside of his accounting, which is quite possible. But as the notary will be unable to determine the origin of the funds used, he will have to make a declaration to Tracfin, the organization in charge of fighting against money laundering. It is therefore likely that the tax authorities will look into this transaction. This is not necessarily a problem in itself, if the cryptocurrencies used were earned or converted in a transparent manner. On the other hand, this can lengthen the time it takes to sell, until it is authorized by Tracfin. »

The payment of registration fees, for its part, will not be able to be made in cryptocurrencies, as the French state does not (yet) accept this means of payment.