BitPay is becoming a well-known name for the purchase of real estate. Only in the first two quarters of this year, the company has already processed more than US$ 5 million in real estate transactions.
The latest partnership signed by the company was with a luxury condominium complex in Orlando, Florida, United States. Announced on August 6, the contract foresees the processing of payment in bitcoin for real estate transactions.
With 878 residences, Grove Resort & Water Park will accept bitcoin for real estate purchases, which are located in resort-style condominiums. However, the relatively minor update hides a more complex story.
In 2017, the company processed almost US$ 20 million in properties development and real estate sales. After the cryptocurrency market bottomed out in 2018, this number fell to about US$ 6 million.
According to BitPay’s commercial director, Sonny Singh, the company is working to double its real estate businesses year after year.
BitPay for real estate transactions
BitPay is the world’s largest bitcoin processor. With about US$ 1 billion in annual businesses, the platform also acts as a payment processor for real estate buyers. The company trades bitcoin for US dollars and transfers the funds to a custody agent on behalf of the buyer.
Singh said the company performed its first real estate transaction through the Californian real estate agent Piper Moretti around four years ago. Since then, the company has processed millions in real estate transactions for companies and individuals. Thus, 2019 seems to be the best year of the company so far.
According to Singh, the average price of a house purchased through the stock Exchange is about US$ 1 million. “They are not houses of US$ 30,000”, he said.
The company maintains a permanent relationship with several developers and real estate agents. Magnum Real Estate and JetRE are some of their partners, which negotiate properties in Manhattan. BitPay also processes real estate transactions in some of the world’s most expensive real estate markets, including Dubai.
About 79% of BitPay’s real estate transactions occurred overseas. However, 34% of the dollar value came from domestic buyers in the U.S.
Grove Resort Condos cost around US$ 330,000 and US$ 595,000. The properties are within five minutes of Disney World.
According to the director of Grove Resort, David D’Ambrosio, in recent months there has been an increase in potential customers from China, Turkey and Brazil. They would be interested in purchasing through cryptocurrencies. “It was easy to determine the potential market available”, said D’Ambrosio. The executive has also stated that the “bitcoin holders” were looking for a way to diversify their portfolios.
D’Ambrosio said his company contacted BitPay because the company “carried out a few billion transactions including a few million in real estate only in the state of Florida and in the southeast of the US”.
BitPay charges a 1% processing fee and it is settled in seconds, while a bank transfer charges around 5% and can take several days, according to Singh.
Currently, the resort accepts only bitcoin. However, there are possibilities to add other currencies.