More and more investors trust digital assets, and real estate for cryptocurrency is purchased all over the world: the USA, Australia, Portugal, Spain, Panama, Indonesia, Germany, Thailand, Argentina. It is a legal, safe, fast and convenient way to buy a home abroad.
The Middle East does not lag behind world trends. Moreover, with a vector aimed at digital transformation and the development of society, as well as a more socially responsible capitalism, it has every chance of becoming the center of the crypto space. Even a luxury real estate agency in Dubai now can offer you this payment option.
Why buying real estate in Dubai with bitcoins is gaining popularity
Blockchain technology, which underlies a decentralized, that is, independent of government or banks, digital monetary system, has largely ensured its spread. The use of modern algorithms has brought housing transactions to a qualitatively new level:
• the speed of the exchange of financial resources has grown to almost a lightning-fast level of information exchange;
• the currency is transferred directly to the seller without the involvement of a third party - the bank;
• transactions can be carried out at any time from anywhere in the world, which is especially convenient if you are a foreign investor;
• transactions are carried out anonymously, the "block" system is reliably protected from hacking, falsification, blocking and data loss.
Blockchain in the UAE
The Government of the United Arab Emirates plays a big role in the development of innovative technologies and does its best to bring cryptocurrency to the mass level. The process of introducing the blockchain system in almost all sectors - from energy to the media - the government began in 2016. Under the promotion of blockchain networks, the legislative framework is also being “sharpened”.
Now everything related to housing can be paid with a virtual “coin”: buy an apartment in the UAE, pay utility bills, etc. DLD (Dubai Land Department) plans to enter all real estate with data into the blockchain registry from the development stage of the project to the last payment of the owner. The innovative technology is also being used by Smart Dubai, the government's smart transformation agency, DP World, the world's leading logistics solutions company, Emirates Airlines, Dubai State Bank Emirates NBD, Abu Dhabi Digital Governance (ADDA).
Cryptocurrency to purchase real estate in the UAE
The first cryptocurrency housing deal in the UAE took place in 2018. Of the 1,300 apartments in the new residential complex, the owners, business partners Michel Monet and Doug Barrowman, put up for sale 50 for bitcoins. Acquired luxury housing immediately. Some investors bought a couple, and one bought ten apartments at once, which is a sound passive income strategy. The UAE is a tax "paradise": the country's legislation does not provide for the payment of any taxes by the owner both when owning housing and when receiving income from it, e.g., when renting it out. That is why foreigners choose the Emirates for profitable investment.
Cryptocurrency in Dubai
2021 was a very important year for the industry and eventful for currencies: bitcoin hit new ATH and almost touched USD 70,000, ETH entered the final stages of transition to POS, Stock-2-Flow model fell apart, XRP hinted at the end of the trial c SEC, Musk's tweets raised either Dogecoin or Shiba Inu by thousands of percent, El Salvador legalized BTC as a means of payment, and many more interesting events.
The Emirates also did not stand aside all this time: a regulatory mechanism was launched to registration of cryptocurrency companies in one of the most famous free economic zones - DMCC. Exactly after the DMCC Crypto Center was created.
In the second half of 2021, Dubai World Trade Center Authority (DWTCA) decided to issue the necessary permits and licenses for financial activities, related to cryptocurrencies. And the largest crypto exchange, Binance, signed a Memorandum of Understanding understanding with DWTCA to establish their hub in Dubai.
By the way, at one of the conferences it was stated that consideration of the use cryptocurrencies in the UAE economy is being conducted at the highest level in the UAE and possibly in 2022, we should expect positive statements in this regard.
We remember that such a state body as the Dubai Land Department has become one one of the first in the world to start issuing property ownership certificates on the blockchain. Therefore, now, each document confirming the ownership of the property has a QR code, which is easy to check and confirm the authenticity of ownership.
In a housing sector, a lot of property transactions were signed in 2021 through cryptocurrency. Basically it is BTC, ETH, USDT (ERC-20/ Tron). And this is done officially, without gray schemes. Or directly to the developer's account (with crediting to the crypto-account developer, fixing the rate after the first confirmed block) if he has a wallet or through financial companies that help obtain secured checks (or otherwise words, manager checks) and make them as payment when buying a primary or secondary dwelling in Dubai and the UAE.
What documents do you need to buy property in cryptocurrency
The list of documents required when purchasing real estate for cryptocurrencies remains the same as in the classical scheme for purchasing an object: the buyer's passport (or international passport, if available), legal identity card, contact information, proof of residence address. If the transaction goes through a representative, a power of attorney certified by a notary in his name is required.
Steps of the deal
1. Brokers of the real estate company show you the best property options on the market, and you decide what suits you.
2. The type of transaction is determined (directly to the account of the developer or with the participation of a financial company)
3. An appointment is made in the office, the exchange rate is fixed and the fact of the exchange takes place (instead of secured checks are obtained, essentially money)
4. Money is transferred to the developer / seller (if it is a secondary market)
5. A Certificate of Ownership is issued by the Dubai Land Department. Congratulations! You are the owner of property in Dubai!
Real estate agency in Dubai
Ax Capital real estate agency will help you buy an apartment or a villa quickly and without any hassle. You no longer need to sit for hours on different websites to find a good option. You don't have to spend your personal time screening out inappropriate ads, visiting "doubtful" sites and checking documents. You will not have to ride around the city, looking for an option that would really match the photo in the ad. They take care of all the troublesome issues.
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