Not too long ago, nobody would’ve imagined that cryptocurrency could be used to purchase a residential home in Dubai. But what could not have been conceived at one point is a reality today. Dubai has built a name for itself by embracing innovation and pushing boundaries. Today, investors and buyers do not have to rely on traditional banking methods and provide personal information; they can bypass all that and use digital currencies to acquire valuable residential properties.
Issues with Traditional transactions in real estate
There are several pain points with traditional real estate transactions in modern times including lengthy processes, high fees, and complicated buying procedures for foreign buyers. This often results in slowing down transactions leading to investors pulling out because of the delays. It becomes more difficult for global investors as this process can create barriers that can be daunting. This is where the cryptocurrency innovation comes into play as it solves this huge problem with faster transactions, and fewer intermediaries at a lower cost which allows for a faster and smoother purchase of real estate properties, especially for foreign investors.
Influence of Cryptocurrency in Dubai Real Estate
As we all know, Dubai has transformed itself into a hub for technological innovation, and adapting cryptocurrency in the real estate sector is another step forward. With the help of blockchain technology, buyers can purchase properties more swiftly and securely. For sellers, their properties easily become accessible to a wider range of international investors seeking to diversify their assets.
How much cryptocurrency is required to purchase a property
For example, if the buyer wishes to purchase a housing property worth 2.7 Million Dollars and one Bitcoin currently is valued at 50,000 Dollars, then the buyer will need to spend 55 Bitcoins to purchase the property. However, it’s important to note that the value of Bitcoin often fluctuates. So, buyers looking to purchase real estate property through cryptocurrency like Ethereum will need to keep a close eye on the market prices for the best deals.
Benefits of Cryptocurrency in Dubai Real Estate
Buyers and sellers avail several advantages through cryptocurrency in a thriving market like Dubai.
- Speed—Transactions using cryptocurrency can be completed within hours, as opposed to weeks and months for traditional transactions.
- Lower Transaction Fee – Here buyers can save on fees by cutting out intermediaries like banks and currency exchange services.
- Privacy & Security – Transactions done with the help of cryptocurrency are secure and anonymous ensuring the complete privacy of the buyer. It can be beneficial to HNIs who value discretion.
- Global Accessibility – Cryptocurrency makes it much easier for foreign investors and buyers to purchase a property in Dubai from anywhere in the world. This eliminates the hassle of currency conversion or dealing with lengthy banking processes.
Accepted Cryptocurrency in the Dubai Real Estate Market
While the blend of cryptocurrency and the real estate sector is still growing, not all cryptocurrencies can be used for purchasing a property in Dubai. Here is the list of cryptocurrencies that can be used to purchase a real estate property.
- Bitcoin – Being the original cryptocurrency, today it is a widely used digital currency in diverse fields including Dubai real estate.
- Ethereum – Being widely known for its smart contract capabilities, it is often used for real estate transactions and predefined conditioning.
- Tether – It protects buyers from the volatility of other cryptocurrencies.
- Binance Coin – In recent years, this cryptocurrency has garnered immense popularity and is now accepted by developers in Dubai for property purchases.
Purchasing a real estate property with cryptocurrency
There is a procedure to purchase a real estate property in Dubai via cryptocurrency for a safe and hassle-free transaction.
- Reputed Developers – While Cryptocurrency is coming across as a lucrative way of purchasing/selling a real estate property, not every developer is accepting it. Mostly you will find luxury developers like Damac Island accepting cryptocurrency.
- Evaluating Property Price in Cryptocurrency – Now that you have selected or shortlisted a property, calculate the price in your preferred cryptocurrency. As mentioned before, do keep an eye on the market to avail the best deal.
- Initiate the transaction – Work with the developer to transfer cryptocurrency to their wallet.
- Secure Legal Documentation – It’s vital to make sure that all legal documents are in order beforehand like the title deed on the buyer’s name post the transaction.
- Move-in – Once all the necessary procedures have been completed, the final step is to move into your new property.
Conclusion
Today Dubai has been setting new standards for technological advancements and it is expected to witness an upward trajectory with the implementation of blockchain technology. With numerous advantages like speed, security, and flexibility, cryptocurrency today provides reliable and hassle-free transactions for purchasing a property in Dubai.