Used to be, unsure now, likely done as a private transaction.
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Real estate Dubai - Crypto
- Thread starter Joukilop
- Start date
I had a call with someone Friday about it. It's already not that simple.
Things have already changed. I will go directly in Dubai ask my questions
Besides Dubai is done for speculative returns - better to have a place in Saudi, Oman, Doha as they will begin to compete much more in the future
I sold an apartment in Dubai back in 2016 and the buyer paid in cash. At that time there was zero problems with it.
As others have said, the UAE have tightened up considerably now. You can still pay cash when buying an apartment, but you will be required to show proof of funds as regards where the cash came from.
The only way to buy a property with crypto is to find a private seller willing to accept crypto. Or cash out the crypto before concluding the ourchase and pay the normal way, by bank transfer. The UAE is crypto friendly, but they 100% comply with international ML regulations now.
Having said that, you can still bring decent amounts of cash into the UAE and deposit it in a bank account there without too many questions being asked. Although that is an area they are also cracking down on. If you pay cash into your account at a bank machine now for example, banks insist that you enter your Emirates ID number.
As others have said, the UAE have tightened up considerably now. You can still pay cash when buying an apartment, but you will be required to show proof of funds as regards where the cash came from.
The only way to buy a property with crypto is to find a private seller willing to accept crypto. Or cash out the crypto before concluding the ourchase and pay the normal way, by bank transfer. The UAE is crypto friendly, but they 100% comply with international ML regulations now.
Having said that, you can still bring decent amounts of cash into the UAE and deposit it in a bank account there without too many questions being asked. Although that is an area they are also cracking down on. If you pay cash into your account at a bank machine now for example, banks insist that you enter your Emirates ID number.
When people here are talking about 'paying in cash' do they mean paying with physical, paper money? Or are they talking about just paying the full amount without a mortgage?
I don't see why a transaction would be scrutinized just because the buyer is paying the full amount via normal transfer. Happens all the time
I don't see why a transaction would be scrutinized just because the buyer is paying the full amount via normal transfer. Happens all the time
Paper cash - in my post anyway. Buying without a mortage would rather be referred to as paying up-front.
I had a briefcase full of paper cash when I sold my Dubai apartment back in 2016, and took it straight to the bank to deposit along with a copy of the sale contract. Even back in 2016 there were limitations on what I could eventually buy with that amount of cash.
My accepting cash was therefore purely for the seller's benefit.
In 2024 my bank would most likely file ML forms on the seller, that is even if the legal side could still in 2024 be completed with a paper cash payment. Which I doubt.
I had a briefcase full of paper cash when I sold my Dubai apartment back in 2016, and took it straight to the bank to deposit along with a copy of the sale contract. Even back in 2016 there were limitations on what I could eventually buy with that amount of cash.
My accepting cash was therefore purely for the seller's benefit.
In 2024 my bank would most likely file ML forms on the seller, that is even if the legal side could still in 2024 be completed with a paper cash payment. Which I doubt.
There is KYC but its mostly formal, you just need to fill a form with where you money came from. Seems like nobody checks anything.
You can buy with crypto directly with very few developers, mostly small OR second tier ones. Also few accept paper cash.
However you can go crypto to managers check at any of their OTC desk for a small fee (around 1%). Most devs seems to accept those.
Most usual form of payment is bank wire. Preferably from domestic bank because international ones sometimes take 2 weeks or even get returned. And usually when you reserve a property with a deposit you have up to 2 weeks to pay, if you fail you lose the deposit, so international wires can be stressful for that reason.
Source: I've bought few properties this year, but all my experience is from dealing with buying from developers directly, no secondary market, where obviously its person to person and more things can be negotiated.
I haven't attempted to wire out of the country yet, so can't comment on the potential difficulties there, but would love to learn if it is indeed tricky from people with 1st hand experience.
You can buy with crypto directly with very few developers, mostly small OR second tier ones. Also few accept paper cash.
However you can go crypto to managers check at any of their OTC desk for a small fee (around 1%). Most devs seems to accept those.
Most usual form of payment is bank wire. Preferably from domestic bank because international ones sometimes take 2 weeks or even get returned. And usually when you reserve a property with a deposit you have up to 2 weeks to pay, if you fail you lose the deposit, so international wires can be stressful for that reason.
Source: I've bought few properties this year, but all my experience is from dealing with buying from developers directly, no secondary market, where obviously its person to person and more things can be negotiated.
I haven't attempted to wire out of the country yet, so can't comment on the potential difficulties there, but would love to learn if it is indeed tricky from people with 1st hand experience.
Since you have successfully purchased some properties from developers already can you give any tips on what people should keep in mind when buying? Say someone has $1m to spend on a property and wants to relocate to UAE to spend 6 months a year there
@Brutus Stick to established developers or if you really like something from someone new, research it well. For example ask what else they have built and go on google maps and check the buildings reviews, you will be surprised what terrible issues some have.
Avoid Damac, it's very established developer but poor quality. (They accept crypto btw) It is basically the synonym for poor quality in Dubai, even if they try to differentiate from that image now.......
When dealing with crypto pay attention to the usd to aed rate they give you, they might claim its without a fee and then hit you with 2% on the conversion rate. Good rate is 3.663 AED for 1 USD (that is what local banks would give to their priority clients) at binance p2p you can get up to 3.7XX for 1 usd. 3.5XX is fair but not great.
off plan properties are without a broker fee, secondary market are 2% for the broker. If someone tells you they will waive their broker fee for an off plan property run away.
You have 4% DLD fee (its like property tax but only when buying, not annual) and usually they put some administrative fee of 4-5k AED which I have no idea what is it for but most take it.
Initially I was astonished by devs asking for 5% expression of interest before you can even see the floor plans, which you lose if you don't choose anything, but turns out this is how some of them operate because it's a sellers market now. For hugely anticipated projects from established developers (Nakheel, emaar, etc) people line up overnight with checks to just give a million or two before even seeing what the building/villa will look like. And you get whatever is available. It is crazy and was initially put off by that.
Once the developer registers you as owner of the property (most do it themselves, with just 1 i had to do it myself) you can see your portfolio of properties in their Dubai REST app, which is really neat and can even see the progress of the building. Government does inspection every 3 or so months and updates the progress and publishes pics. It gives you estimated rent and bunch of other handy data.
Some developers take months to register you though (so don't be scared it might be a scam) because they do it in batches.
When the developer gives you their escrow account to wire the money to, just in case double check on the Dubai DLD site (or REST app) if that is indeed their registered escrow account for that project. Not that anyone tried to scam me, since I used only established devs, but is good practice in general.
EVERYTHING can be done remotely from your home country. With off plan you don't need to get to notary ever and even if you do, you can give power of attorney online! (I needed to do this with the 1 dev that didnt register in DLD himself)
Not sure what else to add, generally it is quite safe and straightforward, the broker should hold your hand on every step and if you trust him it goes smoothly. He gets paid by the developer, so don't be shy to ask them whatever makes you feel comfortable with the process.
If you have specific questions I would be glad to address them.
Avoid Damac, it's very established developer but poor quality. (They accept crypto btw) It is basically the synonym for poor quality in Dubai, even if they try to differentiate from that image now.......
When dealing with crypto pay attention to the usd to aed rate they give you, they might claim its without a fee and then hit you with 2% on the conversion rate. Good rate is 3.663 AED for 1 USD (that is what local banks would give to their priority clients) at binance p2p you can get up to 3.7XX for 1 usd. 3.5XX is fair but not great.
off plan properties are without a broker fee, secondary market are 2% for the broker. If someone tells you they will waive their broker fee for an off plan property run away.
You have 4% DLD fee (its like property tax but only when buying, not annual) and usually they put some administrative fee of 4-5k AED which I have no idea what is it for but most take it.
Initially I was astonished by devs asking for 5% expression of interest before you can even see the floor plans, which you lose if you don't choose anything, but turns out this is how some of them operate because it's a sellers market now. For hugely anticipated projects from established developers (Nakheel, emaar, etc) people line up overnight with checks to just give a million or two before even seeing what the building/villa will look like. And you get whatever is available. It is crazy and was initially put off by that.
Once the developer registers you as owner of the property (most do it themselves, with just 1 i had to do it myself) you can see your portfolio of properties in their Dubai REST app, which is really neat and can even see the progress of the building. Government does inspection every 3 or so months and updates the progress and publishes pics. It gives you estimated rent and bunch of other handy data.
Some developers take months to register you though (so don't be scared it might be a scam) because they do it in batches.
When the developer gives you their escrow account to wire the money to, just in case double check on the Dubai DLD site (or REST app) if that is indeed their registered escrow account for that project. Not that anyone tried to scam me, since I used only established devs, but is good practice in general.
EVERYTHING can be done remotely from your home country. With off plan you don't need to get to notary ever and even if you do, you can give power of attorney online! (I needed to do this with the 1 dev that didnt register in DLD himself)
Not sure what else to add, generally it is quite safe and straightforward, the broker should hold your hand on every step and if you trust him it goes smoothly. He gets paid by the developer, so don't be shy to ask them whatever makes you feel comfortable with the process.
If you have specific questions I would be glad to address them.
I think I found what DAMAC stands for : Dirt-Ass Materials Awful Construction
We had a client this year who bought property in Dubai via Crypto but not on his personal name, but on Company's. He made transaction with the company with Crypto trade license - EU established, so they didn't deeply explored the Income, just sign a Declaration, due to he declarate - Its comapny's profits which is stored in Crypto wallet of the company. Crypto trading was the main scope of activity of the company. Everything was OK. If you need more details, you can contact. Its just a feedback.
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