Buy Property In Dubai Using Crypto Currency : Step-by-Step Guide

UAE is one of the most beautiful and happening parts of the world. It brings down the multicultural population, still embracing the cultures and welcoming open-heartedly, relaxation in property investment, zero tax on properties, lowest crime rates with 2nd rank in the world, affordable properties, lavish malls for luxurious shopping, top-notch brands, etc. all under one roof of UAE.

It is the most desired place for living due to the manifold benefits it gives. The mentioned points are the reasons why people crave to buy property in UAE. With the increasing demand and bringing ease of living UAE properties are perfect. They are the blend of exclusive and high-end lifestyle options that can now be owned with cryptocurrencies. A wide range of luxury living options is available and no matter what an apartment, townhouse, villa, etc. you can own from crypto and most popularly with Bitcoin.

Countless types of cryptocurrencies are available in the market but in the huge list Bitcoin is the first and most known. There are many features and characteristics of it but exploring the new ones is important to run applications and create contracts, here blockchain is used. This is the key to understanding how cryptocurrency works.

Blockchain is about the list of transactions that anyone can view and verify and these transactions are most important for most cryptocurrencies enabling secure payments between unknown people. Blockchain has many uses beyond cryptocurrency that can be used to explore medical research, streamlining the healthcare records and supply chains; thus increasing privacy on the internet.

(1) Pick the most acceptable option: Choose from the numerous available varieties of villas, townhouses, and apartments. Connect with the team from where you want to purchase and check out all the options and locations fulfilling your needs.

Finalized your property? Move to the payment.

(2) Pay at convenience: You need to complete the payment for the final purchase, then you can transfer the cryptocurrency whether it’s Bitcoin, Ethereum, USDT, or Cardano.

Payment made? Now the property is yours.

(3) You got the ownership: Well, you have chosen the property; made the payment; now collect the ownership documentation for the final shot. Then it is completely your choice whether you want to live, rent or another thing.

Do whatever you want to do with your property.

Key Concept 

Cryptocurrencies use a technology called public-private key cryptography to transfer coin ownership on a secure and distributed ledger. A private key is an ultra-secure password that never needs to be shared with anyone, with which you can send value on the network. An associated public key can be freely and safely shared with others to receive value on the network. From the public key, no one can guess your private key.

Though the payment is secured in its means, still there was the need for some Government initiatives. The government came up with several blockchain projects in the past years like the Dubai Blockchain Strategy in 2016 and the Emirates Blockchain Strategy.

The new technologies saved a lot of time and resources. Projects like these showed that the country should have advanced governmental efficiency and development with leadership. The main aim behind the Blockchain strategy initiated by Sheikh Mohammed bin Rashid Al Maktoum is to make Dubai flourish.

In fact, in cryptocurrency, there is no need for any bureaucracy to conduct any business. Even blockchain is going to be used in real estate to register and buy property in Dubai.

Let’s know some of the most successful blockchain initiatives (listed down are the most interesting ones).

(1) SMART DUBAI: The project included a blend of Blockchain, AI, interactive dashboards, big data, and smart contracts aiming to make Dubai the city of the future.

(2) DUBAI BANKS: Several Dubai banks are using the Blockchain system including Emirates NBD and Mashreq Bank. The new technologies will improve and enhance security by eliminating fraudulent cheques and transactions.

(3) DUBAI PAY: It was also an initiative for Smart Dubai that allowed the residents to pay online for all government services. It comes under the control of the Dubai Smart Government.

Sheikh Mohammed bin Rashid Al Maktoum- the ruler, vice-president, and prime minister of the United Arab Emirates (UAE) on March 9, announced on his official Twitter account that UAE has adopted its first law to regulate crypto assets.

The Government enacted Law No. 4 of 2022 on the Regulation of Virtual Assets (VAL) and established the Dubai Virtual Assets Regulatory Authority (VARA). This legal framework is a milestone reflecting Dubai's aim of becoming one of the leading jurisdictions for entrepreneurs and investors of blockchain technology. This law enactment will promote Dubai's position as a top-notch destination in the virtual asset sphere.

Rashid Al Maktoum said in the tweet, ‘We established an independent authority to oversee the development of the best business environment in the world of virtual assets in terms of regulation, licensing, and governance.

VARA will be overlooking the regulations in different ways:

• It will be dedicated to overseeing the crypto activities
• It will serve as a regulator to the related service providers
• It will be authorizing and regulating the VASPs- Virtual Asset Service Providers
• It will ensure the highest standards of protection of data
• It will monitor the virtual asset transactions

When you know the government efforts, now let’s know the process of buying a property in UAE with Crypto.

You must have heard before that working with experts always brings you benefits and the same stand with cryptocurrency. If you are planning to buy, sell and rent a property in UAE then you should work or plan your investment strategy with experts who have enough knowledge of such transactions.

Also, the company needs to have a license from Dubai Economic Department (DED) to provide the customers with financial intermediaries and this will also help the company to have a spotless reputation in the market.

Different cryptocurrencies like Ethereum, USDT, and other digital currencies, were used to carry out the transaction operations. The transaction price will be formed per the crypto rate and the amount will be discussed with the company beforehand. The process of obtaining cryptocurrency is not a mess, it can be obtained easily in a few simple steps:

• Open a Cryptocurrency wallet if you don’t have one
• Register as an individual or a legal entity for the wallet

For the real estate purchase, choose the property by looking at all the terms and conditions. Here the payment method doesn’t matter. At this stage, the buyer and seller will discuss the parameters that later will be added to the agreement. Then the chosen and finalized price will be converted into cryptocurrency.

Then the buyer will send the crypto amount to the digital wallet to the specific company and the commission amount is fixed. Then the buyer will get the cheque in AED form so the needed amount can be transferred to an escrow account of the chosen property (for the off-plan property and funds sent to the seller’s account).

If you are directly purchasing from the developer then you need to sign a special agreement where the information about the transaction from a third party is available. Here the buyer receives the notification regarding the money transfer from the developer. No matter if you are paying with Cryptocurrency, even then you can’t pay directly. You must send the digital currency to the trading company and wait for the cheque you paid for the property.

You of course need some documents…

Even if you are buying a property with digital currency then also you will need the same documents as that the usual transactions. First of all select the right company from where you have to make the necessary purchase that can guide you well with the property, price, collection, documentation, and ownership. The company will also assist you with the documentation process in filling the contract properly. You need some specific documents to make the transaction that includes:

• International passport
• Identity document (ID)
• Proof of a residential address
• Contact details
• A power of attorney, if your representative conducts the transaction

The Dubai Virtual Asset Regulation Law is aimed at creating an advanced legal framework to protect investors and provide international standards for virtual asset industry governance that will promote responsible business growth in the emirate, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said. Virtual assets include cryptocurrencies such as Bitcoin and non-fungible tokens (NFTs). Some of the leading developers have accepted this payment mode boosting investment.

EMAAR

At the end of March 2022, Emaar announced the future acceptance of Bitcoin. This news first came out on the local news outlet Lovin Dubai. They informed certain customers about the acceptance from now on. Bitcoin Suisse from Switzerland will be the broker chosen by Emaar with whom they will work.

It is certainly having large potential in the market and soon Dubai will be the new crypto hub of the world. These developments will target the vast growing audience and the group of crypto-millionaires. Buying property with cryptocurrency in Dubai is altogether something that will boost investment in Dubai and will also bring ease in payment. Emaar is going to follow the trend of accepting crypto payments.

DAMAC

Leading developer of real estate i.e. Damac will accept cryptocurrencies for real estate transactions. This will add flexibility to investors’ efforts. The developer will enable the conversion to fiat that is not backed by a commodity.

“This move towards customers holding cryptocurrency is one of our initiatives at Damac to accelerate the new economy for newer generations and the future of our industry,” said Ali Sajwani, general manager of operations at Damac.

Dubai is embracing the idea of accepting crypto for payment and is overcoming the other cash and financing payment methods. It is a new and upcoming way for the real estate landscape to thrive. Surely cryptocurrency exchange for the property isn’t a very common method and ever seems to be distant as of now but developers are making this a reality.

Some of the leading names have come to accept the cryptocurrency for the sale of real estate; these names include Emaar Properties, DAMAC Properties, Dubai Properties, etc. In this whole process of transaction proper cooperation between the licensed real estate company, real estate agents, and cryptocurrency transaction management companies has a good reputation in the market because property purchase is not something easy.

A good level of increase has been observed in the cryptocurrency sphere of Dubai properties. You can purchase these different segments of real estate through the crypto payment that includes prestigious apartments, penthouses, villas, and entire floors.

Doesn’t this sound amazing that you can go and exchange a tangible asset- a home for a physically non-existent currency? Though the answer is yes there is a little detour. The cryptocurrency property purchase in Dubai is somewhere still a cash transaction. How?

Cryptocurrency i.e. received is first converted into cash and then the transaction takes place post-conversion. The virtual currencies as a mode of payment are still under approval process by UAE Central Bank. But still, Dubai is taking steps in this area to regulate the safe purchase via virtual assets. More developers are showing interest in this new method being influenced by the sci-fi world because the world moving speedily in the direction of virtual assets.

Choosing crypto over any means of payment these days is a smart move. The real estate transaction in Dubai with crypto brings manifold benefits.

• With the reduced transaction costs, crypto payment is considerably chosen over the conventional modes making the purchases cheaper and more effective for all the stakeholders.
• Also crypto allows you instant payment where you don’t need to wait for hours or days or need to connect with the banks for the transactions. Buy anything instantly even a home.
• Crypto transaction means lesser paperwork making the task fuss-free. The process is less time-consuming, and easy unlike traditional complex processes, which crypto brings an advantage over.

Planned to choose crypto, know the benefits as well

I have just mentioned above why people are choosing crypto over traditional cash transactions. Now let’s know the benefits of buying property in UAE with crypto. People in the whole world are seeing cryptocurrencies, especially bitcoin as the future currency and its growth & demand is showing their value.

People love the fact that this process keeps the Central banks out of the process of managing the money supply. It is coming up as a promising foothold, in fact, Pew Research Center data from 2021 found that Asian, Black, and Hispanic people "are more likely than White adults to say they have ever invested in, traded or used a cryptocurrency." Other people say that this method is decentralized and secured far more than the traditional payment systems.

• Cost-Effective

It is a very cost-effective and cost-saving solution that reduces the cost of internal payments and cuts the additional taxes levied on the transactions. Banks charge a very good amount of fees on international transactions but with bitcoins, you need not worry about anything.

• Quick Transactions

This benefit has been mentioned several times above that it is a quick transaction process that transfers the money in no time. To purchase property in Dubai with bitcoin there is no need to wait for the verification of assets. After settling down all the terms and conditions you can enjoy a smooth and direct transaction.

• Secure Payments

Well, it is a crypto payment- bitcoins that means the currency will be immediately converted to fiat. Also, the process is encrypted means no leakage of data and amount. Then there is no involvement of any third intermediary in between.

Crypto has made the payment and purchase process super smooth bringing ease to each step. Once you understand the process and the terms & conditions, then you can buy property in UAE with crypto easily. Did you understand that? This process is not at all a headache like originally the sale and purchase of real estate is often felt. Crypto exchange has made the process easy for the sale and purchase of property in Dubai. You can get rid completely of the paperwork that seems to be nerve-wracking most of the time. Cryptocurrency brings manifold benefits to the table; you just need to learn to fetch it.

People who are planning for real estate purchase in UAE will know how amazing crypto purchase is. It will soon become your best friend and the best option to go with making the process smooth and hassle-free. Even though the process is super-comfy but I still have a few pieces of advice for you; heed.

• Always count on the reliable and experienced property dealers that deal in crypto payments.
• Always choose a real estate company that is credible and reliable. Check out the market and know the essential about the company you have chosen.
• Cross-check your crypto’s balance before hunting a property, whether you have enough in your digital wallet or not.

Post the execution of the law executed by Dubai’s Virtual Asset Regulatory Authority (VARA) ease in the purchase through cryptocurrencies has been observed. Dubai is already becoming a crypto zone and for those who want to avail the benefits of cryptocurrencies then investing here becomes mandatory.

Soon, the country is going to position itself as a leader in the future and in the Middle East, you will be investing in the third-largest crypto market. There are many benefits of cryptocurrency like no transaction fees, quick transfer, safe and secure transactions, etc. but knowing the popular ones is also important. The most popular Crypto Currencies in Dubai include.

• Bitcoin (BTC)

The top and the most common choice of anyone investing through cryptocurrency is Bitcoin i.e. leading in the market. It is known as the first successful currency based on a blockchain.

• Ethereum (ETH)

It is another popular choice and part of blockchain and cryptocurrency. Ethereum in UAE has great scope to become a favorable choice for developers to implement Web 3.0 smart contracts.

• Litecoin (LTC)

A former engineer at Google Charlie Lee developed Litecoin that competed amazingly with Bitcoin. It got famous for its quick transaction speed and became a popular choice among the population.

• Tether (USDT)

It is usually considered a less volatile cryptocurrency and the first stablecoin. It is a beneficial cryptocurrency of Dubai making the purchase and conversion process super easy.

• Dogecoin (DOGE)

Its price volatility is much higher thus implying that it can bring drastic losses and significant gains if worked well. It got popular with the Shibu Inu meme and became a meme coin.

But still, the importance Bitcoin achieved is totally different, and in the coming time, it will just fetch benefits for the investors.

When I have mentioned above cryptocurrency transactions are gaining a boost and out of all the types that work in Dubai, bitcoin has a separate fan base. But knowing why bitcoin is an important cryptocurrency in Dubai and why should you buy a property with Bitcoin Dubai or buy real estate with bitcoin.

(1) Cost-effective transfers: Saving a good amount on international payments and transfers is the biggest benefit of cryptocurrency. Generally, banks charge heavy fees on international payments but in crypto transactions, there is no worry about extra charges.

(2) Safe & Secure Process: Crypto is the safest option for payment and purchase option in Dubai. After paying the bitcoins, the system transfers the currency to fiat i.e. regulated by central banks, and no other financial institutions back it. There is no other intermediary involved in the process.

(3) Saves time and energy: Buying Real Estate with Bitcoin in Dubai saves your time and energy that can be spent somewhere else. Crypto is a quick and easy method providing the immediate transfer of property amount and ownership in no time.

With Dubai's mellowing position as a technology and innovation hub, we can anticipate that further legal frameworks will boost the property purchase via cryptocurrencies and this will gain momentum seeking investors to receive payments with new mediums. This acceptance of crypto payment will take the country a step ahead and soon it will become a crypto hub.