Enzo Rosani, director of BARNES Miami, completes the first real estate transaction in Cryptocurrency of the year in Miami

As global consumers begin to move towards new virtual opportunities made available in the burgeoning metaverse, traditional crafts once confined to conventional boundaries are now having to adapt to the changing times. Real estate has been no exception, with the booming virtual real estate transaction scene estimated to top $1 billion in deals by the end of 2022 alone.

Enzo Rosani, Director of BARNES Miami, has just completed the first sale in cryptocurrency of the year in Miami for a property in a luxury residence in the heart of downtown. Located in a skyscraper, the apartment sold for 170 ethers covers 650m² on 2 levels and has 6 bedrooms, panoramic views of Biscayne Bay and access to a private beach.

 “The buyer converted his ETH into a stablecoin (USDC), a cryptocurrency pegged to the US dollar, considered and called a “stablecoin”. We prefer to work this coin over others because there is no volatility. If ETH or Bitcoin loses 70% in one day, USDC will stay at one dollar,” says Enzo Rosani.

New opportunities for the real estate market?

Figures from the past few months put the global cryptocurrency market at a valuation of $3 trillion, a number that is only expected to increase over the next few years. Given its current near ubiquity, many businesses have begun to implement cryptocurrency into their transactional operations, allowing a whole new audience of consumers to participate in the process.

Today, Enzo Rosani, is helping lead the South Florida region into this new normal, leading by example by making cryptocurrency an option for his clientele.

“In 5 years, I think that between 30 and 40% of sales will be made in cryptocurrency in the USA”, estimates Enzo Rosani. The simplicity of the transaction and security are two reasons for the rise of cryptocurrency transactions.

“Sales via cryptocurrencies can significantly reduce the risk of fraud and acquisition costs. There is a significant impact on the simplification of the transaction, the transmission of data and the shortening of the time between the signing of the sales agreement and the delivery of the sales contract to the notary. In addition, because of the sums, we do several tests before sending the funds, always on small sums, and once the confirmation of the lawyers, we send all the funds, ”he explains. "Within an hour, the funds are deposited into the seller's account and can then be resold in US dollars or kept in crypto." Far from the classic deadlines for real estate transactions, which are generally 3 months.

The cities most sought after by the wealthy: Miami 1st, Paris rises to 5th place

«In 2022, the BARNES City Index has never been so varied,highlighting meteoric rises like Madrid, Moscow and Prague, but also traditional safe bets like London, New York and Tokyo. The reflection of the changes caused by the health crisis and especially the ability of the great fortunes to adapt», comments Thibault de Saint Vincent, President of BARNES.

“In 2022, the BARNES City Index has never been so varied, highlighting dazzling increases such as Madrid, Moscow and Prague, but also traditional sure values such as London, New York and Tokyo. The reflection of the changes caused by the health crisis and above all the ability of large fortunes to adapt”, comments Thibault de Saint Vincent, President of BARNES.

Miami 1st ahead of Austin and Tokyo

At the top of the ranking appear five cities that haveconvinced investors both for their attractiveness and their fundamentals: Miami, already surprised by the Top 2020 where it was 4th, takes 1st place, followed by Austin which jumps from 24th to 2nd place. Tokyo remains good third, followed by Geneva which progresses from 8th to 4th place and Paris, rising from 7th to 5th place. The United States are therefore taking the lion's share due to rapid economic developments, while Japan and Europe, the «Old Wave», are managing to reinvent themselves.

«Old Europe is regaining its former status, with five cities in the Top 10 (Geneva, Paris, London, Madrid, Stockholm), testifying to a return to the traditional safe values that were, before the health crisis, the great regulars of the BARNES City Index,» explains Thibault de Saint Vincent.

The same is true for New York and Toronto, which are also making a comeback. Zurich, which held 1st place in 2021, fell to 11th, victim of the overheating of its real estate market, as did Stockholm and Copenhagen, which left the Top 5.

* Ultra High-Net-Worth Individuals: individuals or families with assets of at least thirty million dollars

** High-Net-Worth Individuals: individuals or families with assets between one and thirty million dollars

Miami, the start-up city

A big surprise of the BARNES City Index 2021, Miami has been able to ignore the constraints of the health crisis and prove that its new image as a flourishing metropolis was not a mirage. The sunnyclimate, the beauty of the beaches of BiscayneBay, the very advantageous taxation without income tax for individuals and a corporate tax limited to 5.5%, a flourishing cultural life, the quality of schools, the health system and universities and a prestigious market at still reasonable prices: so many assets that have convinced HNWIs and large companies, who migrated from the Northeast of the UnitedStates or California even before the coronavirus appeared. It is also the city in the United States withthe highest number of new inhabitants in 2021, 2nd for economic growth, 1st for start-ups (9.39% of the workforce!) and 4th school zone in the country in terms of supply. Home to no less than 1,000 multinationals and with an average age of 38.2 years, Miami is a bubbling global city.

“Instead of putting the city to sleep, the Covid-19 epidemic has only highlighted Miami's strengths, making remote working widespread and making hedge fund moves much more frequent. Nicknamed the Gateway to the Americas, Miami is open to Europe, Asia and the Middle East,” adds Thibault de Saint Vincent.

With the new arrivals, the strong rental demand can only entice investors. Buyers, on the other hand, are turning to recent neighborhoods and those with proven rental capacity, in particular those of Edgewater (+40 % for rents), downtown in full renovation and Brickell (+30%). Homes in Miami Beach, Coconut Grove, Key Biscayne and Coral Gables remain stable with great growth and a supply of waterfront homes; in fact, the most sought-after properties are villas facing the ocean with pontoons on secure private islands and penthouses with panoramic views of the waters; what interests newcomer Americans are ultra-luxury properties for themselves or rental.

“A survivor of the subprime crisis, preserved despite Covid-19, Miami has successfully dusted off its image of a sleepy metropolis to become a flagship destination for entrepreneurs and start-ups. Even though prices are high, the Miami market has yet to reach the same peak seen in the last cycle. The horizon is therefore clear for 2022 in Florida! “, he adds.