Bitcoin, Ethereum, and other cryptocurrencies have pushed the boundaries of global exchanges and have become a payment method through which you can not only pay for goods and services, but also buy real estate. As one of the most progressive cities in the world, Dubai has already begun to develop digital investments.
The ability to use digital money to pay for purchases increases the demand for assets and real estate in Dubai, attracting new investors interested in a fast and safe investment to spend their crypto.
In this article, we’ll tell you more about the features and the process of buying real estate for cryptocurrency in Dubai.
- What is a cryptocurrency, and how does it work?
- Basic concepts
- Cryptocurrency and blockchain regulation in Dubai, UAE
- Who is involved in the regulatory framework?
- The process of buying real estate for cryptocurrency in Dubai
- The main nuances of crypto transactions with housing
- Step-by-step purchase process
- What documents are required to purchase real estate for cryptocurrency?
- What kind of Dubai real estate can you buy with bitcoins and cryptocurrency?
- Which developers in Dubai sell real estate for cryptocurrency
- Real estate transactions for cryptocurrency in Dubai
Buying a property with cryptocurrency has been possible since 2013, but not everywhere. In 2022, anyone with enough money can buy an apartment or a house for digital currency in almost any part of the world. Is it possible to buy real estate in Dubai for cryptocurrency? – Of course. In the UAE, a licensed broker makes transactions with digital assets and real estate.
To understand how cryptocurrencies and the buying and selling process work in this region, we will take a closer look at the key concepts.
At the end of February 2022, the total number of digital currencies is 7,916, and its global capitalization is over $1.91 trillion.
Blockchain is a decentralized database that depends not on a single regulatory authority (such as a Central bank in the financial sector) but the system structure of its users. The data is reliably protected from third-party interference and manipulation. It provides rapid information processing and storage.
Advantages: security, anonymity, flexibility, and democracy.
Cryptocurrency is electronic (digital) currency that can be used to pay for various goods and services. This means of payment cannot be forged, and its issue is limited.
Advantages: it cannot be forged, its issue is strictly limited, the transactions of the process participants cannot be affected, information about operations is available only to the user on their cryptocurrency wallet.
Digital currency can take the following forms:
- A coin - a unit of electronic means gained from "mining".
- A token - an analogue of securities, a unit of accounting in the digital world used by companies as the main payment tool.
The leaders in the digital currency market are now:
- Bitcoin (BTC);
- Ethereum (ETH)
- Ripple (XRP);
- Binance Coin (BNB).
According to CoinGecko’s largest crypto platform, as of February 28, 2022, the total capitalization of bitcoin, the major digital currency, increased by 8% to $773 billion, and the price of one bitcoin exceeded $41,000.
Our company helps clients invest in United Arab Emirates housing, including using digital currency. We will select liquid and profitable housing and provide comprehensive services for cryptocurrency transactions. The client does not have to be aware of the peculiarities and nuances of the processes, but it will be useful to discuss the subject in more detail to have an idea of what they are dealing with.
The use of cryptocurrency is rapidly developing in all markets. Although the concept is new, in 2022, the Dubai market is able to conduct transactions of this kind. The system is integrated with blockchain technology, providing a simpler and faster process of buying an apartment. Until recently, it was unthinkable to buy a villa or apartment for digital currency. Now, it’s offered everywhere. Buying a house in Dubai, renting, and managing property is now an integral part of our reality. This technology has great potential and will remain here forever.
The management and regulation of blockchain projects and crypto assets in the emirate is carried out through the Securities and Commodities Management (SCA), the Dubai Financial Services, and Supervision Authority (DFSA). What is their purpose?
The activities of the DFSA (Dubai Financial Services Authority) relate to credit services, asset management, banking, securities, collective investment funds, commodity futures trading, etc. The organization develops proposals for exchange-traded cryptocurrencies and tokens.
On October 25, 2021, a unique structure for regulating investment tokens was released, with proposals in the first consultation document No.138 of March 2021.
Persons interested in owning a property, marketing, and trading investment tokens and their issuance in the Dubai International Financial Center.
This includes companies providing financial services related to investment tokens.
Although the UAE government has been actively implementing blockchain in all economically significant areas since 2016, a foreigner will find a simple procedure for buying a home and investing.
What’s important to consider?
- Look for a proven company – choose those who have proven themselves in this field and have an impeccable reputation. The legality of the company's activities can be confirmed by its license from the Dubai Economic Department (DED).
- Transactions can be made in any cryptocurrency convenient for you at the current exchange rate. The value of the transaction is based on the current exchange rate and the amount of the commission.
- Open a crypto wallet. Any individual or a legal entity can do it.
- Choose a home and pre-agree on the terms of the transaction. At this stage, the housing price in UAE dirhams (AED) is converted, based on the current cryptocurrency price. The buyer and seller are not responsible for fluctuations in the exchange rate. The apartment is purchased for the amount specified in the contract.
- Transfer the amount to the trading company’s account as a commission payment. Then, the buyer receives a receipt with the amount in dirhams to transfer it to the escrow account of the development (for off-plan housing) or the seller's account (for finished real estate).
Note! When buying a home from the developer, you need to sign a contract to pay for the transaction by a third party. The receipt must be transferred to the developer, and the buyer receives a payment message. For ready-made real estate, you must pay for the living space with a receipt in dirhams, and then receive the Title Deed.
Important! It is impossible to buy an apartment in Dubai at the request of the Central Bank of the UAE.
First, you need to transfer bitcoin or other coins to the trading company’s account, transfer it to the national currency of the UAE, and then pay for housing in dirhams.
To buy a home for cryptocurrency in Dubai, you will need the same documents as for a standard deal.
- International passport;
- Emirates ID (ID card);
- Residence certificate;
- Contact information (phone number, e-mail);
- Power of attorney (for transactions through a representative).
First, you need to draw up a preliminary sales contract in Arabic or English. Buyers who do not have experience with this kind of transaction should contact a real estate specialist. The agent will not only help you select a home that meets your needs and invest in it profitably, but will also collect documents, draw up a contract correctly, and explain any unknown points.
On our website, you can buy apartments in the best districts of Dubai:
- Dubai Marina;
- Downtown Dubai;
- Palm Jumeirah;
- Dubai Hills;
- Business Bay.
And in large residential complexes or districts – these are Burj Khalifa and Emaar Beachfront, a project launched by the city's largest developer, Emaar Properties. Both ready-made and off-plan properties are available to purchase: villas, apartments, detached houses, and townhouses.
Each of these districts offers premium-class conditions, with amenities in the residential complexes and the surrounding area. Another advantage is the proximity to the business city center and entertainment areas.
Several companies in Dubai provide their clients with a cryptocurrency payment system. Some of them accept payment directly, others through exchange platforms. The latter option is the most common.
These companies include:
- Emaar Properties;
- Select Group;
- Fam Properties;
- Samana Developers.
These developers sell properties to foreign investors and ordinary buyers for bitcoin, Ethereum, and dogecoin.
The best new buildings in Dubai, offers from the largest developers, competitive prices, and convenient payment options are available on our website! Our experts will select real estate for investment and arrange secure payment in bitcoin or another cryptocurrency convenient for you.