Even though cryptocurrency appeared relatively not long ago, this method of payment is already firmly entrenched in the global real estate market. There are countries where crypto is almost the most popular currency, and the UAE is one of them. According to Co-owner and CEO of Coin Real Estate Victor Maki, more than 45% of daily transactions in Dubai are made using cryptocurrency. However, not all buyers are aware that crypto can bring additional profit or become bait for scammers — it all depends on the situation.

Coin Real Estate is an international company with experienced professionals who implement and develop modern technology in the real estate market throughout the United Arab Emirates. They offer an innovative solution using innovative technology for a smooth transaction process while acquiring real estate.

The company aims to create a reliable network for investors from around the world to safely invest in real estate throughout the United Arab Emirates. Their implementation of Blockchain technology paves the way for real estate trading, allowing trading platforms and online marketplaces to provide better support for real estate transactions. 

The process of buying an apartment for cryptocurrency is simple, but there is a risk of running into scammers

We talked in detail about the phenomenon of the Dubai real estate market in a previous article. Co-owner and CEO of Coin Real Estate Victor Maki emphasized at the time: real estate sellers in Dubai were among the first to use crypto for transactions. Thanks to that, the market was able to adjust to the changing reality and provide buyers and sellers with conditions and bonuses that are available almost nowhere else. 

— How long ago did cryptocurrency enter the Dubai real estate market as a payment method and how soon did it become trusted by buyers and sellers? 

— In Dubai, they first started talking about cryptocurrency back in 2007. However, in the real estate market, cryptocurrency first appeared in Canada in 2013. Then, a small house was put up for sale for bitcoins. 

Today, the popularity of cryptocurrency in Dubai is not what it was 15 years ago. Most investors use it only for transactions with real estate. The demand for such transactions is growing every year. In order to reflect the level of investors’ confidence in cryptocurrency, here is a fact: on average, at least 45% of daily real estate transactions in Dubai are made with cryptocurrency.

— How complicated is the process of buying real estate for crypto?

— Now almost any property in Dubai can be bought for cryptocurrency, and the whole process will take less time compared to payments in fiat money (fiat currency is a currency the value of which is provided by the state that issues it. The value of such money does not depend on its material or the size of government and bank reserves — ed.) Years of experience at Coin Real Estate have enabled us to make this process as smooth and simple as possible. Here are the step-by-step instructions:

  • The investor chooses a property from the options provided by our team (which include thousands of properties in various price ranges);
  • Coin Real Estate and the investor sign a sales contract.
  • The investor makes a down payment of 30% of the property value.
  • Coin Real Estate’s legal team draws up the necessary documents and contacts the Dubai Land Department to issue a title deed.
  • The investor pays the remaining 70% of the property value and receives the ownership documents.

The best part here is that investors can safely purchase real estate while staying at home. Additional bonus: payments can be made not only in euros or dollars, but also in Russian rubles.

— Everything looks simple and clear, and so the question arises: Can the buyer do everything himself?

— An experienced investor who is actively interested in the Dubai real estate market and constantly monitors the market situation, knows all about prices and trends, and has already used cryptocurrency for payments, of course, can conduct a transaction on their own. However, buyers who know nothing about the local market may face a number of problems, which will lead to additional costs, and sometimes they are quite significant. For example, there are operational rates of commission to be paid to real estate brokers/agents, even if the buyer from his side did not engage a realtor. 

The next block of difficulties is the delay in obtaining the title deeds due to the limited knowledge of the Dubai Land Department procedures. The buyers (mostly due to the language barrier) are not able to prepare the necessary documents for submitting the application to Dubai Land Department in a proper way. As a result, the titling process gets a bit more complicated. 

It is important to understand that, as in all transactions, there is a risk of being cheated. One of the most important conditions for securing your money is to check the companies and the authenticity of the properties for sale on some websites. Because of the high demand for apartments in Dubai scammers who offer properties at deliberately low prices have appeared on the market. After receiving the payment such companies tend to «dissolve» and an inexperienced investor just loses his money.

This is one of the reasons why in Coin Real Estate we never ask for a full prepayment. Only a down payment of 30% is required in order to secure the investor’s chosen property and initiate the document processing by our legal team. Only after the title deed is issued, the remaining 70% is to be paid to Coin Real Estate.

view of dubai

Why cryptocurrency is better than fiat money? 

— Why do you think cryptocurrency is better than regular money? Is there a future scenario where fiat money completely leaves the market?

— Cryptocurrency is better than usual fiat currencies, first of all, because of its simplicity and the numerous bonuses that this method of payment offers. In today’s world, anonymity is really important for many investors, and only cryptocurrency can provide it. Transactions are much faster than in conventional banking, and source confirmation is not required or rarely causes problems. In addition, the use of cryptocurrency is not tracked or regulated around the world. All this gives investors peace of mind and confidence in the future.

An important bonus of using cryptocurrency is the extra profit. Construction companies can tokenize an asset by dividing it into several digital shares and selling each of those shares separately. As a result, entire buildings are sold within a month, and investors are able to enter the market with relatively small start-up capital.

In addition, it is the Dubai market that offers tax relief on income for investors. Here, income is not taxed at all, and the property tax rate in Dubai is currently 2.5% per year depending on the value of the property.

That said, I think that the fiat money that people have become so accustomed to, will not disappear from our lives (or at least not in the near future). There is a particular segment of customers who are simply more accustomed to using regular money to make payments, and they do not trust modern technology. However, it is fair to say that there are fewer and fewer of them. 

Over time, the popularity of cryptocurrency will only grow, and the most developed countries are already taking many steps to popularize this currency. Thanks to a favorable regulatory environment or a well-developed cryptocurrency ecosystem, the use of cryptocurrency has become widespread in the following countries:

  • Switzerland has a reputation of being a cryptocurrency-friendly country, with many cryptocurrency exchanges and startups located there.
  • Malta has become a center of cryptocurrency and blockchain activity, with a number of major exchanges locating their hubs on the island.
  • Japan has a well-developed cryptocurrency ecosystem, with a number of exchanges operating in the country and the Japanese government supporting the use of cryptocurrency.
  • South Korea has a large and active cryptocurrency market, with a number of exchanges operating in the country and a significant number of people using cryptocurrency for transactions.
  • The United States has a large and diverse market for cryptocurrency, with a number of exchanges operating in the country and a significant number of people using cryptocurrency for transactions.

There are many other countries where the use of cryptocurrency is also gaining momentum. However, the level of acceptance of cryptocurrency may vary depending on a number of factors, such as the local economic and political environment, the level of technological infrastructure, and the level of awareness and understanding of cryptocurrencies among the population.

— Are there situations where it is impossible to pay with crypto?

— In Dubai’s current market, most goods and services can be bought in exchange for cryptocurrency. However, some businesses only work with fiat currency. Since Coin Real Estate operates an internal cryptocurrency exchange, we can guarantee that an investor will pay in cryptocurrency no matter what happens.

I want to emphasize that it is very important to approach transactions with caution, whether paying with cryptocurrency or fiat currency. At Coin Real Estate, we always ensure full transaction transparency by providing clients with complete information about properties, processes, and payment options.

Skytrain in Dubai