Virtual Coins, Real Walls: How to Buy Real Estate in Dubai with Cryptocurrency & Bitcoin
- Trends and Forecasts
- Legal and Regulatory Landscape
- Dubai Real Estate Developers That Accept Cryptocurrency
- How to Buy Real Estate in Dubai with Bitcoin
- Benefits of Buying Property with Bitcoin
- Challenges and Risks
Dubai has been systematically adopting DeFi, cryptocurrency, and blockchain in real estate transactions.
It all started seven years ago with the sale of 50 apartments for Bitcoin, heralding the UAE’s inaugural property deal utilizing cryptocurrency. Today, Dubai’s developers welcome cryptocurrency when selling apartments, villas, townhouses, and commercial spaces.
Purchasing realty with crypto is like a conventional transaction but with the added benefit of it being faster, safer, and more cost-effective—courtesy of the revolutionary blockchain technology.
Trends and Forecasts
Using Bitcoin to buy an apartment or house in Dubai is gaining momentum. This trend reflects the emirate’s aspirations to be a global frontrunner in financial technology and innovation.
Experts predict continued growth in cryptocurrency-based real estate transactions. The establishment of the Virtual Asset Regulatory Authority (VARA) in 2022 reinforces these predictions.
Dubai’s reputation as a real estate hub with prices starting from 2 BTC, the resilient nature of its market, and investment security also contribute to the growth of international crypto transactions.
Legal and Regulatory Landscape
VARA, which oversees and controls virtual assets in the UAE, administers the legal and regulatory framework for cryptocurrency operations in Dubai.
VARA aims to promote Dubai’s position as an international destination for virtual assets and licenses issuers, exchanges, and crypto platforms to ensure standards, security, and transparency in the national digital asset market. Note that Dubai developers who accept real estate remittances in crypto sign the sales and purchase agreement (SPA) in UAE Dirhams, not Bitcoin, Ethereum, Tether, or Binance coins.
Crypto gateways authorized by VARA to operate in Dubai include:
- Binance
- Crypto.com (CRO DAX Middle East FZE)
- BitOasis
- Bybit
- Deribit
- OKX (OKX Middle East Fintech FZE)
- Fasset
- CoinMENA
Dubai Real Estate Developers That Accept Cryptocurrency
These developers have adopted cryptocurrency remittances for real estate purchases:
- Ellington Properties embraces Bitcoin payments.
- DAMAC Properties accepts Bitcoin (BTC) and Ethereum (ETH) payments.
- Emaar Properties also accepts Ethereum and Bitcoin payments.
- Mag Lifestyle Development favors the OneGram cryptocurrency and has expressed interest in admitting stablecoins.
Nakheel Properties, Meraas, Omniyat Group, Sobha Realty, Al Habtoor Group, Dubai Properties, and many others also don’t shy away from crypto.
To identify a property firm and development and match them to a specific cryptocurrency, we suggest consulting with our well-informed team, as this information is not always readily available on developers’ websites or may be outdated.
How to Buy Real Estate in Dubai with Bitcoin
1. Select a Development
First, identify the off-plan project and property you want to buy in Dubai.
There are real estate developers who do not recognize cryptocurrency. To avoid wasting time searching fruitlessly for a unit among property firms that don’t suit you, narrow the choice down to those that fully embrace crypto.
2. Make a Down Payment
Once you have selected a property, make a down payment and verify the developer’s draft of the SPA.
3. Transfer the Payment
Identify the developer’s approved cryptocurrency and convert it to fiat (AED or USD) through a VARA-approved crypto payment gateway. The developer’s representative or real estate agent will assist you here.
A win-win scenario for all parties involved is when the property firm uses blockchain technology to create a smart contract. Such an agreement records the terms of the sale and triggers automatic remittance when the unit registration is completed.
4. Obtain Your Title Deed
Once the money is transferred, the Dubai Land Department (DLD) registers the property in your name, and you receive a title deed.
A significant advantage of Dubai is that numerous crypto-friendly developers offer interest-free installment plans that can be paid with crypto.
Thorough pre-deal due diligence and ongoing expert guidance are essential for a successful transaction. Moreover, when using third-party services to convert cryptocurrency to fiat, audit their reputation and reliability to secure your investment.
Benefits of Buying Property with Bitcoin
Fast and Easy
Cryptocurrency transactions conducted using blockchain take just minutes or hours and are simpler than traditional real estate deals because they cut through the red tape.
Lower Costs
Crypto transactions have lower fees and reduce costs compared to traditional banking and real estate purchases that involve international exchange rate charges.
Security and Transparency
Blockchain provides a high level of protection and transparency in real estate transactions, reducing fraud risks.
Privacy
Cryptocurrency provides confidentiality and privacy for real estate buyers because it bypasses traditional financial institutions.
Remote Market Access
Cryptocurrency transcends geographical borders, allowing investors from all over the world to capitalize on Dubai’s real estate market.
Note that if your representative or agent is going to make a transaction in your name in Dubai, they will need a power of attorney.
Diversification
For those who’ve ridden the crypto rollercoaster, Dubai’s property market offers a chance to diversify their portfolio by adding a physical asset as solid as the Burj Khalifa itself.
Residency
By buying real estate in Dubai worth 5.42 BTC, you can obtain a long-term visa in the UAE.
No Taxes on Real Estate in Dubai
The emirate has a zero-tax policy for individuals on capital gains—both property and non-property-related. This means you won’t have to pay taxes when buying or selling real estate.
Whether you are a resident of the country or not doesn’t matter.
Challenges and Risks
Cryptocurrency Volatility
Volatility is Bitcoin’s double-edged sword. Stay attuned to trends and fluctuations in the cryptocurrency market and develop a risk mitigation strategy.
Conversion to Fiat
The UAE Central Bank does not currently allow virtual currencies as a direct payment method for deals. Ellington and DAMAC and their buyers use third-party crypto brokers to make payments and convert BTC into UAE dirhams or USD.
The benefits of cryptocurrency clearly surpass the drawbacks. Expert advice and transaction support are indispensable and serve as a cornerstone for a successful deal.
If you want to learn more about the cryptocurrency transaction process, developers who accept Bitcoin, or compare installment terms across different developments, our agents are ready to offer insightful advice. We regularly oversee real estate purchases with BTC and ETH and know all the nuances of SPAs for such transactions.
We can guide you during the transaction and help you register the rights with DLD and pay the first installment. Reach out to us to discover suitable developments and finalize your transaction in record time!
