Virtual currencies such as Bitcoin and Ethereum, are now used for buying Dubai real estate. Dubai has introduced an option to sell and buy properties by using cryptocurrencies. In 2019, the largest Bitcoin transaction occurred, where a community by Emaar Properties sold for 180 million USD.
EMAAR Properties is not the only regional developer in the UAE. Developers are interested in modern technologies and adapting such payment services in the UAE. It is beneficial to investors who want to purchase real estate in the UAE. The other developers also help with virtual currencies and offer the possibility of these currencies to buy properties with Select Group, DAMAC Properties, Meraas, and Dubai Properties.
The digital currency market is now at risk, and that’s why many crypto investors are transferring their asset forms into more stable and reliable assets such as real estate. Now, it is significantly easier for an investor to buy a property with cryptocurrency in Dubai, such as Bitcoin. But before buying any property here, you must exchange the cryptocurrency for traditional money in UAE. And for that reason, you must do some time-consuming paperwork and other procedures to purchase property with cryptocurrency. Bitcoin is less used currency as compared to traditional currency in UAE. Still, its integration is flawless getting into the real estate market. It is predicted that crypto will transform the future of purchasing and selling properties in the UAE.
In this blog, let’s discuss the process of cryptocurrency and how it works, its regulations in Dubai, and all the documents’ requirements to buy a property with your cryptocurrency in Dubai.
How does cryptocurrency work?
Cryptocurrency is a type of digital currency that is traded online for goods and services. Cryptocurrencies are more like arcade tokens, but they are physically not available. Before buying and selling, you must exchange cryptocurrency for real currency to access real estate property in UAE. All digital currencies work using blockchain technology. Blockchain technology is a decentralized technology that spreads across a network of computers, and trading cryptocurrency does not involve any intermediaries or role of banks. That’s why people here in the UAE invest in blockchain technology, which offers security.
Digital currency is divided into different coins and tokens. Coin mining is done by computer systems highly equipped with specialized chips designed particularly for crypto mining operations. There is a virtual payment system for every project that is provided with tokens means it is the primary driver of the network. For example, Binance coin was the token on Ethereum and was used for trading operations before it became a utility cryptocurrency that now operates as a payment method.
So, cryptocurrency is a digital version of money that is backed by strong security features. Blockchain technology is a decentralized database that one person cannot change its values. Cryptocurrency opened a world of possibilities in the UAE. Most of the property developers in the UAE allow investors to buy or sell properties using different digital currencies. The investors in return have a chance to apply for a UAE golden visa with a validity of 5 or 10 years. But one thing must be noted these developers who accept cryptocurrency will only be able to sign a sale and purchase agreement that is always in the UAE’s currency, that is, in Dirhams.
Cryptocurrencies are idolized because of the prices driven by speculators, as these currencies are beneficial to trade and get profit from. One of the most successful and popular cryptocurrencies is Bitcoin. Bitcoin is very valid and volatile in terms of pricing. The value of Bitcoin almost reached $65K last year and then lost half its value in a few months. That’s why most investors want to invest their cryptocurrency in real estate.
The documents required before buying a property in UAE with cryptocurrency are like those for usual monetary transactions. Here are the required documents to make the transaction for buying or selling a property with cryptocurrency in UAE:
- Proof of having a residential address
- A power of attorney in case of your representative conducting the transaction
- Individual contact details
Real estate with crypto: Benefits
There are numerous benefits to buying property in Dubai with cryptocurrency. Some of them are mentioned below.
Transactions are faster than traditional methods, facilitating quicker property acquisitions.
2. Lower Costs
It reduces transaction fees compared to traditional banking systems which can save money.
Blockchain technology ensures high-level security, minimizing any fraud risks.
Offers a level of anonymity, enhancing privacy for buyers of real estate.
Allows investors to diversify portfolios by adding real estate assets to cryptocurrency holdings.
What are the locations you can buy real estate with cryptocurrency in Dubai?
You can buy real estate with cryptocurrency in Dubai, in different locations. Some of the best choices we have are following:
- Downtown Dubai
- Business Bay
- Palm Jumeirah
- Dubai Hills
- Dubai Marina
Image: aerial view of Palm Jumeirah
Developers selling real estate with cryptocurrency
Real estate in Dubai allows clients to buy it with cryptocurrency. Some of the renowned developers in Dubai selling real estate with cryptocurrency in Dubai include Fam Properties, Samana Developers, Select Group, and Fam Properties.
Cryptocurrency & blockchain regulation in Dubai
VARA (Virtual Assets Regulatory Authority) was established to develop a secure operating framework for the VA (Virtual Assets) sector that can be scaled by ensuring investor and market protection. It expects that governing principles of activities and services regarding virtual assets must be regulated rather than continuously evolving technologies and products.
Meanwhile, the move showed how much confidence the government of Dubai in VA (Virtual Assets) is being completed to the future digital economy. Also, the inclination of the Emirate to establish itself as the world’s Virtual Assets Capital.
Dubai’s VARA just announced its entry into the ‘Metaverse’ along with the purpose of its establishment of Metaverse HQ in the dynamic virtual world of ‘The Sandbox.’
VARA has become the world’s 1st regulatory authority that will debut in the Metaverse. Also, VARA ensures the regulator’s accessibility to its industry in their environment and facilitates collaborative engagement between VASPs (Virtual Asset Service Providers, International Regulatory Authorities, and Industry thought leaders.
UAE initiatives to promote cryptocurrency
The types of projects such as VARA are the sole reasons to push the country, UAE, forward for advanced governmental efficiency, industrial leadership, and recognition at the international level. Sheikh Mohammed Bin Rashed Al Maktoum directs blockchain strategy initiatives to help Dubai, a booming city in the world of cryptocurrency.
Implementation of cryptocurrency and blockchain systems is actively through economics. The aim is to conduct and grow business without any bureaucracy involved. Blockchain is to be used in real estate to create a registration for all real estate in Dubai, developed by the DLD (Dubai Land Development) in the future.
Buy property with Emirates Business Setup!
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Emirates Business Setup announces a leap into the future of buying and selling property! Our professional advisors will assist you in searching for your dream place, including residential or commercial space, in UAE. The entire transaction process is very straightforward, and we will make sure you spend the least of your time on paperwork and more on emplacing to your dream property in UAE!
Globally, the economic landscape is now changing, so take advantage of the opportunity to get leverage of cryptocurrency and all the properties market. Start your journey to buy Dubai real estate with cryptocurrency.
What cryptocurrency is accepted for real estate transactions in Dubai?
Bitcoin and Ethereum are among the most commonly accepted cryptocurrencies in Dubai.
What types of properties can I buy with cryptocurrency in Dubai?
You can buy various types of properties in Dubai with crypto. It includes residential homes, apartments, commercial spaces, and even luxury penthouses, using cryptocurrency in Dubai.
How do I ensure the security of my cryptocurrency transaction when buying real estate in Dubai?
Use secure wallets and reputable platforms for cryptocurrency transactions while buying real estate in the UAE. Additionally, verify the legitimacy of the property and parties involved in the transaction.
What is the future outlook for using cryptocurrency in Dubai real estate?
The future outlook is optimistic, with the continued adaption of cryptocurrency in Dubai’s real estate sector as blockchain technology and regulations.