Cash and mortgages needn’t be the only way you buy a home in Dubai. If you have stocked up on Bitcoins, and their prices happen to be flying high at the moment, that’s all you need to pay for the deal.
This is exactly how more buyers are financing their purchases in in Dubai.
“Typically, exchanging cryptocurrencies to acquire properties often happens during peak bitcoin prices,” said Firas Al Msaddi, CEO of fam Properties.
And it’s as easy as using cash or a bank loan to get the keys to the home. Al Msaddi says that developers in Dubai are willing to offer buyers the option to add Bitcoin to that mix.
“The way it works is that the developers who accept Bitcoin sign the SPA (sale and purchase agreement) based in Dirhams only,” he added.
“However, they run their own KYC (know-your-customer) programmes and work with buyers to engineer the structure of the transaction in a way that works for both parties.
“As things stand now, no developer signs SPAs based on Bitcoin. It is a lot to do with accepting the process and the channel in which the payment can be made to developers.
“It is still very limited… but it is growing as the legal framework around it is maturing in the UAE. I’ve only heard of Bitcoin as it is the main crypto currency.”
When to take out those Bitcoins?
Cryptocurrencies have been around for some time, with Bitcoin being the most popular one. And as has been widely commented upon, there was a period last year when everyone seemed to be piling into Bitcoins and jacking up the value. It was as if this crypto was on its way to be the new gold standard of these times.
But then gravity intervened and Bitcoin prices were brought down to Earth. Now, after a prolonged period, these are starting to inch higher. Enough for property buyers to once again start using them to pick up an apartment, a villa, and in some cases, an entire building.
“We executed one bulk transaction – but not for a tower – via Bitcoin payments,” said Al Msaddi. “Yes, both developer and investor have to agree on every step of the (payment) way.”
Bitcoin’s swoon and gain
“In the last three- to four-month…