The crypto effect: the rise of digital cash in Dubai real estate

With cryptocurrency in full swing across the globe, haus & haus experts talk about what it means for the emirate's property sector.

In 1983, American computer scientist David Chaum introduced the idea of electronic encrypted money called e-cash. It all took a huge leap in 2008 when Bitcoin arrived, inviting millions to invest in the digital token. Fast forward to today, cryptocurrency can be used to buy anything from cars to luxury properties.

According to a recent report by PwC, the Middle East has one of the fastest growing cryptocurrency markets in the world, making up 7% of global trading volumes. The same report noted that there are more than 400 crypto businesses in the UAE as of today – a number that is expected to grow exponentially in the coming years.

Dubai's real estate sector was quick to jump on the trend, with many developers now accepting crypto purchases and some even receiving direct payments through their digital wallets. haus & haus also facilitate purchases with cryptocurrency through partners and contacts.

"I think Dubai is the most crypto-friendly place on earth. You can buy watches, cars, a new home – the possibilities are endless," said Paul Sharland, Senior Off Plan & Investment Consultant at haus & haus. "In the property sector, it has opened a world of opportunities for digital coin holders who are now investing in the emirate."

A growing era

Some of the most famous cryptocurrencies include Bitcoin, Ethereum, and Tether – and all of them are known for being decentralised and protected to prevent unauthorised access. That being said, countries like the USA are taking measures to further restrict and regulate these payments through declaration forms and approval procedures.

This is not the case for the UAE. "As the rest of the world tightens the regulations around crypto payments, Dubai offers a very simple and straightforward process," added Sharland.

As developers focus on supporting these payment methods, many crypto investors choose to buy off plan properties.

Our experts have noted that most crypto investors choose to buy off plan properties thanks to developers making it easier to pay with different tokens. Although paying upfront is an option, they can still stick to the payment plans offered by the developer – another important benefit for those with savings in their e-wallet.

"We recently completed a substantial amount of crypto sales at a new beachfront residential development. One of the strengths of the Dubai market is being able to facilitate transactions with the use of cryptocurrency ," said David Hutchinson, Off Plan & Investment Consultant at haus & haus.

"Buying properties with crypto is a huge advantage for the emirate's real estate sector and we only expect to see this increase going forward," he added.