A growing number of reputable developers in Dubai have started to accept cryptocurrency as payment. Let’s explore why this is and what it means for the Dubai real estate landscape.
By now the majority of you will have heard the term ‘cryptocurrency’ and have some knowledge as to what it is. Essentially, it is a form of digital, decentralized currency that has been around since 2009. Interest in this currency has peaked and dipped in various degrees since its inception. But, lately, more and more of the general public have started to see the potentials of investing in cryptocurrency. This rising interest, along with the advances in technology that have accelerated the process of ‘mining’ crypto, have somewhat pushed the currency into the mainstream. Subsequently, the facilitation of more official, large transactions, such as purchasing property, is something that has been growing in recent years.
Recent events and market analysis show that the UAE is determined to develop the crypto industry and is heading towards becoming a crypto hub. This fact can be observed by noting that major crypto exchanges such as Crypto.com, ByBit, Binance, and Kraken have been granted licenses by the Virtual Assets Regulatory Authorities (VARA) to operate in Dubai and Abu Dhabi free zones.
With major exchanges available in the UAE, purchasing real estate with crypto has become much easier, and as a result, the real estate industry is exposed to an even greater audience, both foreign and local. This incentivizes major developers in the country to get on board with the shift, further fueling the growth of both industries. As of now, Ethereum and Bitcoin are the two cryptocurrencies accepted by UAE developers.
There are pros and cons for using each of the abovementioned cryptocurrencies, but, more than anything, most investors are greatly drawn to the idea of trading a volatile currency such as crypto that is constantly changing in value, for a much more stable investment such as real estate.
Crypto trading has been going on for a while in the US and Europe, and it can be predicted that, as a result, those around the globe with a ready crypto wallet will be drawn to invest in the UAE real estate industry. As the process is streamlined and sped up, easy, upfront purchases of properties with no mortgage can be completed within days.
It is true that there are still many who are unfamiliar with the digital currency and that, as of now, there are still limited options in terms of crypto exchanges and currencies available in the UAE, but with the growth of this industry we are sure to see a parallel growth in the UAE’s real estate industry.