irtual currencies such as Bitcoin and Ethereum are actively used to buy properties in real estate. Dubai has gone further than most countries and was the first to introduce the ability to sell, rent or buy real estate using cryptocurrencies or Bitcoin.
The crypto market can be extremely volatile at times, which is why many crypto investors are diverting their funds into a more stable investment such as real estate.
What is cryptocurrency?
Cryptocurrency is basically a digital version of money that is based on cryptographic technology or an immutable code. Cryptocurrencies are based on blockchain technology, which is essentially a decentralised database that cannot be altered or hacked.
Regulation of cryptocurrencies and blockchain in Dubai
VARA was established to provide a secure and advanced operating framework for the virtual asset (VA) sector that is capable of scaling while ensuring market and investor protection, and expects it to regulate the principles of services and activities rather than the constantly evolving products and underlying technologies. This bold move reflects the Dubai government's confidence that virtual assets are an integral part of the future digital economy and its willingness to establish the emirate as a world capital for virtual assets. Dubai's Virtual Assets Regulatory Authority (VARA) announced its entry into the metaverse with the establishment of its metaverse headquarters in the dynamic virtual world "The Sandbox".
As the first regulator in the world to debut in the metaverse, VARA aims to ensure that the regulator is accessible to the industry in its environment and facilitate collaboration between global Virtual Asset Service Providers (VASPs), industry thought leaders and international regulators.
Government initiatives
Through these types of projects, the country aims to drive government efficiency, industrial development and international leadership. The blockchain strategy initiatives led by Sheikh Mohammed bin Rashid Al Maktoum will help make Dubai a prosperous city.
The cryptocurrency system and blockchain will be actively introduced into the economy and will help to conduct business without any bureaucracy. Blockchain will be used in the real estate industry to create a registry of all properties in Dubai, which will be developed by the Dubai Land Department (DLD).
Buying, Selling or Leasing A Properties With Inch & Brick Realty
If you want to sell, rent or buy real estate in Dubai using cryptocurrencies, we recommend that you work with companies that have already been successful with such transactions.
Inch & Brick Realty works with reputable financial brokers who have an impeccable reputation in the digital market and are licensed by the Dubai Financial Authority. The merchant licence allows you to accept cryptocurrencies and exchange them into UAE Dirhams (AED). (Even if you buy a property with virtual currency, you cannot pay for it directly. The UAE Central Bank stipulates that all transactions within the country must be made in the local currency. Therefore, transfer the digital currency to the trading company and wait until you receive a check for the agreed amount to pay for the property)
This process can be carried out in any cryptocurrency such as Bitcoin, Ethereum, US dollars or other digital currencies at a fixed price during trading at the trading company's headquarters. The transaction price is set according to the current cryptocurrency price and the amount of commission can be discussed with us in advance.
The process of purchasing cryptocurrencies is very simple. Buyers should open a cryptocurrency wallet if they don't already have one. Registration for the wallet can be done by individuals or companies. Regardless of the payment method chosen, a real estate transaction usually begins with the selection of the property, followed by a discussion of the terms of the contract. At this stage, the buyer and seller discuss the key milestones of the transaction. This is later recorded in the purchase contract. The property price quoted in UAE dirhams is converted into cryptocurrencies such as Bitcoin. The amount is stated in the contract and cannot be changed. Seller and buyer are not responsible for exchange rate fluctuations.
The buyer then needs to transfer the agreed amount of virtual currency to the trading company's digital wallet and pay the commission amount. The buyer is then given a check for AED and can either transfer the required amount to the escrow account of the particular property if the transaction is an off-plan property or transfer the funds to the seller's account. If you intend to buy directly from the developer, you will need to sign a special contract form for third party transactions. The check will then be delivered to the developer and the buyer will receive a notification about the transfer. If the buyer is interested in a completed property, he can pay for the unit after receiving a check in AED. The real estate agent will then work on the deal and help you get the title.
Please note that price fluctuations may make a purchase or lease agreement transaction unprofitable for one party and may result in termination of the contract. In addition to the trading company's service fees, the buyer must pay the Lands Department registration fees (4% of the total property price) and real estate brokerage fees (2%).
What documents do you need to buy real estate with cryptocurrency?
To buy a property with cryptocurrency, you need the same documents that are required for an ordinary money transaction. First, a preliminary contract is drawn up in English or Arabic. Then, it is important to use the services of a professional real estate agent who will help you select the property, collect and prepare documents and fill out the contract correctly.
You will need the following documents for the transaction:
International passport
Identity document (ID)
Proof of residential address
Contact information
A power of attorney if your representative is carrying out the transaction
Inch & Brick Realty prides itself on making this a seamless process for both buyer and seller, managing every aspect of the buying process.
Contact us today to find out more information.
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Buy property with cryptocurrency in Dubai
AdventureVirtual currencies such as Bitcoin and Ethereum are actively used to buy properties in real estate. Dubai has gone further than most countries and was the first to introduce the ability to sell, rent or buy real estate using cryptocurrencies or Bitc...
