Almost everyone has heard of the cryptocurrency trend. It has taken the entire world of finance by storm. Now, investors can purchase a luxury apartment in Dubai’s The Royal Atlantis Resort & Residences using Bitcoin or any other digital payment system. This article will help newcomers get acquainted with the legal, transactional, and protective aspects of buying properties with crypto.
How Does Cryptocurrency Work?
Cryptocurrency is a type of digital currency that can be exchanged for goods and services. It does not have a physical form. So in order to get a housing unit, you should exchange it for UAE dirhams. Digital currencies are mined using blockchain technology. It is a decentralized database that is used by a computer network to manage and register various transactions. Banks and other intermediaries are not involved in this process. In the emirate, many investors use blockchain technology as it keeps their savings safe.
They are extremely popular as their value can grow exponentially, and therefore, they are useful tools to trade for profit. Bitcoin is the most famous and successful cryptocurrency. It has a very volatile price. It reached almost $65,000 in April, and then suddenly, dropped and lost almost half of its value in May 2022.
What Cryptocurrencies Are Popular in Dubai?
Like all over the world, Bitcoin is the most widespread currency for investments. It is followed by Ethereum, Ripple, and Libra. Local residents began buying crypto in 2020, which led to a sharp rise in its value. But Bitcoin has experienced an abrupt fall because it is still quite unpredictable and vulnerable to even minor changes in the market. Currently, after some time, the growth of digital currency can be seen again. That is why experienced investors believe that now is the perfect time to purchase real estate for cryptocurrencies.
It is important to bear in mind that not all sellers are ready to exchange real estate for crypto. Therefore, this issue should be discussed before the real estate transaction.
How to Buy Real Estate in Dubai With Cryptocurrency?
Purchasing a residential or commercial unit for cryptocurrencies allows sides to the transaction to get rid of annoying paperwork and a lot of hassle. Although such transactions are still uncommon in Dubai, the ideal integration of digital currencies into the real estate industry is expected to happen in the near future. It is supposed to bring a real revolution that will completely change the process of acquiring properties.
Cryptocurrency opens up limitless opportunities for all parties involved in a transaction. One of the best features is that using it is as simple as transferring cash or getting a bank loan. This is why many real estate developers provide investors with the opportunity to buy accommodation using various types of digital currencies. However, sellers who accept these currencies will only sign the contract based on the official currency of the UAE, the dirham. It has to do with the fact that cryptocurrencies remain very volatile and can still not be used 100% to buy real estate.
What Is the Process of a Transaction Using Cryptocurrency?
In 2022, buying property in Dubai with digital currencies has become a smooth, systematic, and well-run process. Many development companies have easily integrated Bitcoin technology into their systems. This allowed them to work with high efficiency. Some agencies that do business with these companies completely take over the entire legal framework. So, everything buyers need to do is to choose the residential and commercial units they like and let the professionals do all the hard work.
DAMAC Properties is Dubai’s top real estate development company and a harbinger of housing innovation. Most recently, its representatives proudly announced a revolutionary event. They started to accept payments in Bitcoin and other popular digital currencies on their platforms.
The fact that crypto gives buyers an additional advantage with less documentation and the ability to pay more attention to searching for villas, townhouses, or flats in Dubai has contributed to the company’s decision. With the changing economic situation and the growth of the Dubai housing market caused by Expo 2021, now is the right time to acquire local property using digital currencies.
The professionals of DAMAC Properties try to simplify the process of buying and selling properties. They are starting to move away from the hassle of traditional ways of conducting a transaction, including dealing with banks or other intermediaries. Typically, the transaction process occurs in three steps:
- Choosing a unit. Take a look at the wide range of residential and commercial properties offered by a well-known development company and choose the option that suits your own capabilities and tastes the best.
- Transferring of funds. Transfer cryptocurrency to make full payment for the selected unit. Keep in mind that its value must be equal to the value of the property in UAE dirhams.
- Entering into ownership. The final step is to establish ownership and receive the keys and documents of the purchased property.
Assistance With Buying Property in Dubai
AX Capital partners with DAMAC Properties and has a team of talented and respected agents to help the buyer at every stage of the transaction, starting from the selection of real estate that meets the buyer’s tastes and preferences, to the management of the acquired accommodation. The specialists in the agency make the buying process easier by covering the legal framework and security aspects of conducting real estate transactions with cryptocurrency in Dubai.