Dubai’s real estate market has attracted investors from all over the world, influenced largely by a favorable tax system, a stable economy, and a high supply. The high demand for real estate stimulated an equally rapid development of all local and international banking systems operating in the market. One of the trends is the possibility of paying for real estate with cryptocurrency. It has turned out to have many advantages over other options.

Coin Real Estate is an international company with experienced professionals who implement and develop contemporary technologies in the real estate market throughout the United Arab Emirates. They offer an innovative solution for a smooth process of paying for properties using innovative technology.

The company aims to create a secure network for investors from around the world to invest safely in real estate across the United Arab Emirates. Its own implementation of Blockchain technology is paving the way for real estate trading, enabling trading platforms and online marketplaces to provide better support for real estate transactions. 

«The name Dubai city became a synonym for luxury and wealth»

— Tell us about the phenomenon of the Dubai market, which has been the most active this year. What do you think makes this real estate so attractive for buyers?

— Dubai real estate is a paradise for foreign investors, — told us Co-owner and CEO Victor Maki. — The city is famous for its stable economics, secure environment, and high return on investment. Needless to say, 0% taxation makes the Dubai market a lucrative and desirable option for international investors. 

As a result, we are seeing a steady rise in property prices. By the end of 2022, the price per square meter for properties in the mid-price segment has already approached $3,000, and that, I am sure, is not yet the final price. If we talk about luxury real estate — it’s literally the best place to buy because of the rapid payback period. The very name of the city of Dubai has long been synonymous with luxury and wealth. Property developers are trying to meet the high demand for elite properties by bringing more and more supply to the market. Over the past year alone, the number of luxurious properties has increased by almost 90%. 

In one year the market, in general, has grown by 60%, and in the first 10 months of 2022, almost 23,000 properties worth $14.26 billion were sold. In my opinion, this statistic is quite good to define the phenomenal.

— Who are the most frequent foreign investors buying Dubai real estate?

— Among foreign investors Russians, Indians, Germans, as well as the UK and France citizens, have been the most active this year in terms of the number of transactions. Overall, Dubai’s property market has become more lucrative for foreign investors from around the world. The ease and simplicity of acquiring property, wherever the buyer is located, is noteworthy. From the moment an investor agrees to purchase a property, the title deed and other documents are usually delivered within 12 working days.

Our legal team handles the paperwork and ensures that the title deeds are delivered within the promised time frame.

Everything about buying property in Dubai for cryptocurrency

— How is it possible to pay for real estate with cryptocurrency?

— It could be said that Dubai’s real estate market is one of the first to use cryptocurrency, it is definitely one of the pioneers of the integration of cryptocurrency into the real estate sector. The first cryptocurrency payments here were recorded back in 2017.

The whole process of buying real estate for cryptocurrency is quite simple: the purchase is paid by transferring funds from the buyer’s cryptocurrency wallet to the same wallet of the seller. The payment is made in cryptocurrency, but often, due to the volatility of digital currencies, the price in the contract can be specified in the usual fiat form — in dirhams, dollars, or euros (fiat currency is a currency whose value is ensured by the government that issues it. The value of such money does not depend on its material or the size of government and bank reserves — ed.) Ownership is registered on the basis of transfer confirmation.

Dubai’s environment is extremely crypto-friendly. The government has also initiated extensive developments in blockchain technology to improve the quality of services and security of real estate transactions. That said, our experience shows that financial transactions must always be supervised by competent professionals who know the ins and outs of cryptocurrency transactions and the local real estate market.

panoramic view of part of Dubai city and marina

— How can paying with cryptocurrency in Dubai help with tax benefits?

— With Coin Real Estate, investors can purchase properties in Dubai and pay in cryptocurrency. In addition to the tax benefits, cryptocurrency guarantees not only anonymity for investors, but also fast transactions. If an investor wishes to sell their property, we can help with the selling process. We have an internal cryptocurrency exchange, through which we ensure that the investor receives the fiat currency, whether in euros, dirhams, or dollars.

One of the potential tax advantages of investing in Dubai real estate is that the city has a relatively low property tax rate compared to some other countries. According to the Dubai Land Department, the property tax rate in Dubai is currently 2.5% annually, depending on the value of the property.

Another potential tax advantage of investing in Dubai real estate is the relatively favorable tax environment for foreign investors. There is no personal income tax or corporate tax in Dubai, which means that foreign investors cannot be charged with these types of taxes on their investment income.

— Perhaps there are properties in Dubai that cannot be bought for cryptocurrency?

— In the UAE, there are areas where foreigners are not allowed to purchase real estate in principle, and here we are talking not only about cryptocurrency but all other payment methods. If it is an «open» area, almost any property in Dubai can be purchased for cryptocurrency. What’s more, some construction companies offer discounts on digital currency purchases.

Given the cryptocurrency-friendly nature of Dubai, Coin Real Estate has developed systems that can use cryptocurrency to buy not only real estate but also expensive cars and other luxurious items.

— Can we make predictions about cryptocurrencies in the Dubai real estate market?

— In 2022 alone, Dubai’s property market brought more than AED252 billion and average rents increased by 27.3% in October. Such data suggests that the market will only continue to grow and develop. Based on market trends, we understand that a large percentage of these transactions have been and will continue to be done via cryptocurrency. Experts are predicting that real estate prices will rise by at least 7% in 2023, which means that the number of cryptocurrency transactions will only increase.