Cryptocurrency-based real estate transactions are becoming more common, especially in Dubai.
Dubai has been visionary and has welcomed the digital movement as Bitcoin has gained traction, even endorsing and facilitating cryptocurrency payments for real estate property.
Asset Advisors, a real estate company headquartered in Dubai, is one of the companies that has benefited from the digital revolution. Asset Advisors, a company that provides property investments and high-end real estate selections to developers, home sellers, businesses, and individuals seeking to move to Dubai, allows property ownership to be completed in real-time using Bitcoin and Ethereum payments. Tether (USDT) is now accepted as a payment method, though Bitcoin and Ethereum remain the most common.
The transaction is safe and straightforward, according to Fawzi Hamze, the CEO and founder of Asset Advisors, and the client does not even need to be in Dubai at the time of purchase. Hamze expanded on the process of using Bitcoin and Ethereum as a down payment for housing in an interview with Blockchain.news:
“Once the client confirms the property he wants to buy and we agree on the price, property specifics, and payment plan, we issue an OTP (Offer to Purchase) as the first formal contract guaranteeing the client will purchase the property. The client then tells us which cryptocurrency he wants to use, and we review the percentage fees with our third-party crypto exchange.”
To make this possible, Asset Advisors collaborates closely with developers, who are tasked with authorizing the crypto exchange that will be used as a transaction medium. This method, according to Hamze, makes the transaction productive, transparent, and safe. The final phase of the crypto transaction, he explained, is as follows:
“After that, the client will send the cryptocurrency to a third-party digital wallet, which will make the payment to the developer on the spot. Any contact between the parties is official and open.”
The client will receive a confirmation receipt from the Asset Advisors developer until the Bitcoin or Ethereum payment has been processed. The client will then receive a sales and purchase agreement via courier, confirming their status as a real estate property owner.
Bitcoin’s market capitalization has surpassed $1 trillion, while Ethereum’s has surpassed $300 billion, according to Hamze. Companies and developers are increasingly looking to adopt digital assets and incorporate them into their business models to stimulate innovation and growth, he told Blockchain.news.
With real-estate housing, Hamze clarified that cryptocurrency facilitated and made the process of becoming a property owner easier and faster. While a client may have had to wait a week or more for the bank to begin the investigation and collect the necessary paperwork in the past, using Bitcoin and Ethereum to buy houses reduces the wait period and can make a client “a property owner in less than 30 minutes.”
As a result, Hamze believes that, in the not-too-distant future, the use of Bitcoin to pay for real estate property will become commonplace, especially in a market as fast-growing as Dubai. He went on to explain:
“Bitcoin would dominate the market in the long run. In most industries, using this technology can make a lot of transactions easier. Tesla has already jumped started this opportunity by embracing Bitcoin as a payment tool, having invested $1.5 billion in Bitcoins.”
Real estate ownership in Dubai
For developers, there are several advantages to owning real estate in Dubai. Due to the fact that Dubai is a tax-free market for both income and capital gains, investors have a big investment opportunity. In addition, compared to other global cities and financial hubs such as London, Hong Kong, and New York, investing in real estate in Dubai could be less expensive.
Asset Advisors makes it easier for investors to get their first taste of the Dubai real estate market. A “Move In and Pay Later” scheme has been launched with the real estate company in order to provide competitive and flexible payment packages to prospective buyers. Investors will pay a predetermined sum after buying property with Asset Advisors through the “Move In and Pay Later” program. Depending on the developer and the type of project, post-handover payment arrangements will last anywhere from 3 to 10 years.
Investors may also attend Expo 2020 to obtain a better understanding and knowledge about the real estate sector in Dubai. Expo 2020, a much-anticipated exhibition about Dubai-based investments in a variety of industries, is projected to attract more than 25 million tourists to the UAE (UAE).
Expo 2020 is expected to generate about 277,000 new jobs, which will have a positive effect on the real estate industry, according to previous market data. Housing prices are expected to rise by 20-35 percent as a direct result of Expo 2020, according to some analysts. Investors can take advantage of the rising value of real estate in Dubai by taking advantage of this opportunity and seeing their property appreciate in value over time.
Investing in real estate in Dubai would therefore pay off in the long run for investors. In addition, just last week, H.H Sheikh Mohamed, Prime Minister of the United Arab Emirates and Ruler of Dubai, revealed his intentions to make Dubai the world’s best city to live in. According to his plans, about 60% of the Emirates would be classified as nature reserves. In addition, the government plans to expand public land by 400 percent and green and leisure spaces by 105 percent. Two more major metropolitan centers will be introduced as well.
Investors can take advantage of these opportunities by securing a property investment in Dubai, given the high-quality lifestyle the UAE has to offer and its rise in innovation.