Buying properties in Dubai with crypto is a good decision to make for multiple reasons. With Dubai’s real estate market being one of the most investable markets right now, prices are going up really fast. But everything is not as simple as it seems. Dubai is divided into different zones with different regulations in each zone. There are also different types of properties designed for different types of buyers. On top of that, there are benefits that Dubai gives to people who invest in their real estate market. So as you can see things are not simple and in this guide, we will try to make everything clear for you, so you know what awaits you if you decide to buy property in this market.
Things to know about properties in Dubai
- There are special zones in Dubai, where there are different rules and regulations regarding foreign ownership
- There are different types of residential and commercial properties all across Dubai
- You can use the services of real estate agencies that accept cryptocurrencies as payment methods
- Owning a property in Dubai gives foreign investors benefits such as residency visas
Guide to Dubai real estate for crypto buyers
Dubai has one of the fastest-growing real estate markets in the world. With billions of dollars invested in developing different real estate projects, buyers have many options to choose from. These properties are scattered across the city in different specially designed zones. Dubai tries to attract foreign investors into the country and for that reason, they have created different zones in the city, where laws and regulations differ for foreign investors. Because of this, when investing in this growing market, it is essential to know what these zones are and how they work. All of this is what we will be talking about in this article.
Dubai property types
As we mentioned above, there are many different types of properties in Dubai you can invest in. There are residential properties that get divided into smaller groups and there are commercial properties, which are offices, shop space, and other similar properties. Let’s take a look at each of them individually.
The most popular property type in Dubai is apartments. There are no universal standards when it comes to apartments in Dubai, as each developer builds and designs them as they please. Still, the most common apartments range from studio to 3-bedroom apartments. When it comes to amenities, residential apartments in Dubai usually have at least one of the following: balconies, shared pools, gyms, security, and many more.
When talking about pricing, the average price of a 1 bedroom apartment is AED 340k or the equivalent in crypto. But there are apartments that can be bought for way cheaper, with prices going down to around AED 120k. It should be noted that for these cheaper apartments, you will be buying from a secondary market and the apartment will most likely not be anywhere near the city center.
Another popular option that many buyers look at is penthouses which are located on the top floors of apartment complexes and in some cases hotels. These are ultra-luxury apartments that have multiple rooms equipped with dedicated bathrooms, and walk-in closets, they also have private elevators, private parking, and access to special pools, gyms, and other facilities. Most of these penthouses are taking up almost the whole floor, meaning that there is a good chance that you will have a 360 view of your surroundings.
But with this luxury form of accommodation comes a premium price tag. The average price of a penthouse in Dubai is around AED 3 million, but there might be some options for less.
The second most popular property type in Dubai is villas. This is the most popular choice among large families who need more living space. Typically, villas in Dubai range from 3-bedroom to 7-bedrooms, but there are some that can have more. When it comes to the different types of villas, there are attached, semi-detached, and detached villas to choose from. The attached villas are ones where you will be buying into a very large villa and sharing some areas with other residents. For more privacy, it is better to choose between semi-detached and detached properties, where you will be sharing a fence with neighbors or you will not be surrounded by anyone at all.
These villas are rarely built in very secluded areas and they are usually part of villa communities or compounds. Villa communities are more expensive and desirable places, where villas tend to be larger and come with many different amenities. While villa compounds usually consist of smaller communities of around 20-30 villas with shared facilities such as gyms, swimming pools, and more.
The average price of a villa in Dubai is around AED 2 million, but you can find some villas on the secondary market for around AED 1 – 1.5 million. Most of these villas will be in compound areas, and will not feature such benefits as the ones presented in special villa communities. Despite this, you will still receive benefits such as a 3-year residency visa, which is given to you when buying property valued over AED 1 million.
Another common property type in Dubai is commercial office spaces. Being a tax-free country, many people want to move their business operations to Dubai, and these office spaces are great properties for buyers. These offices range in size from small offices designed for 10-15 employees to massive spaces with room for 40-50 people. Most of these offices come with parking spaces, but in most cases, the number of parking spaces provided will be less than the number of employees the office was designed to accommodate. Because of this, you might need to splash some more money on extra parking spots.
The price of these properties will depend on the area of Dubai they are located in. But the average price per square foot is around AED 1,000. Downtown Dubai is the most expensive, while Dubai Silicon Oasis is known as one of the cheapest options.
Dubai Special Zones
Dubai is trying to become an international city and to attract these international visitors, they have special zones dedicated to foreign buyers. The laws and regulations differ by zones, with some zones giving owners full ownership, while others might limit them in what they wish to do with the property. Let’s take a look at each zone more thoroughly.
If you wish to purchase real estate in the center of Dubai, you will encounter mostly leasehold areas. As Dubai is trying to attract foreign investors, they also don’t want to sell the whole city to foreign citizens, and because of this, they have created these leasehold zones.
When buying a property in a leasehold zone you are not becoming a full owner of the property. What we mean by this is that you will be leasing this property from the government for up to 99 years. This might not be attractive for some, but if you don’t have a problem with not being a full and permanent owner of the property, these are great places to invest in, as they are located in the center of a city with prices increasing on a constant basis.
Some of the most popular leasehold areas in Dubai are Jumeirah, Umm Suqeim, Al Barsha, Mirdif, and Al Warqaa.
If you don’t like the idea of leasing the property and want permanent ownership, Dubai has special freehold areas where foreigners can buy properties instead of leasing them. These freehold areas are mostly located outside of the city center, but it does not mean that they are located inconveniently. You can find both residential and commercial properties in these areas, with more attention put on commercial properties as businesses that don’t care about the location tend to look around here for spaces to buy, while residents who don’t mind leasing a property tend to avoid this area to look for leasehold properties in the city center.
Benefits of buying property in Dubai with crypto
Investing in Dubai has become somewhat of a trend lately, and there are quite a few reasons for that, especially for crypto buyers. When investing in Dubai, on top of the actual investment, you receive good benefits, and if doing it with crypto things are even better.
Dubai’s real estate market is growing rapidly and prices increase drastically each year. If we compare the sales volumes of 2021 and 2022 things more than doubled, while the prices increase by around 44%. The best performers were commercial properties, but residential buildings were not far behind as well.
On top of the rising price of properties, there are other benefits that buyers receive when investing in this market. One of the biggest benefits is that if the property you are investing in is worth at least AED 1 million, which is just over $270,000, you are eligible to receive a renewable 3-year residency visa. If the price is over AED 5 million, then this becomes a 5-year visa.
While you might be wondering why you would need a Dubai residency visa, well there are some perks to living in this city. The main perk is that Dubai is a tax-free emirate, meaning that people who reside here don’t have to pay any taxes on any income they have. Not just income, you don’t have to pay property taxes, sales taxes, or any sort of taxes. Meaning that if you are able to move your business operations here, you can save quite a bit of money.
Now, why would you want to buy these properties with crypto? Well, Dubai and the whole UAE are one of the friendliest places for crypto. They have special government agencies presiding over digital assets, transactions are simple to conduct, and everything is streamlined. On top of that, you are avoiding the headache that is international banking. Making international transactions, especially large ones can become complicated, as there are many different parties involved, with tons of paperwork to be done, high transaction fees, and more. But when using crypto, everything is done party to party, meaning that transactions can go through fast with relatively low fees. You also don’t leave much of a paper trail behind as cryptos bring some level of anonymity, which can be good for some people.
Final thoughts on buying properties in Dubai with crypto
Buying a property in Dubai is a good investment opportunity and many people started to take this opportunity as the market is growing really fast. But before making a decision it is crucial to know everything about Dubai and how this city and market works.
Being divided into different zones, Dubai can not be assessed as one whole city. It is important to learn the characteristics of each zone. Why are zones in city center leasehold zones where you can only lease their properties, and what rights do you have when they are under a lease? When it comes to freehold, you should learn why these zones were chosen to be freehold zones, as the government is ready to give up any ownership of them, while they like to keep control over leasehold ones.
It is also important to know exactly what type of property is best for you. While you might have money to invest in villas, in your case it might be better to invest in apartments instead or commercial property. You should approach this subject with a lot of caution, learn everything there is to know, and only after weighing everything up, make a decision. The best way to do this is to use a real estate agent’s services. These agencies will try to learn your preferences, budget, future plans, and more. After that they will present you with different options you can choose from. These agencies will also take care of the whole process, meaning that all you have to do is sign a few documents. Some agencies even give you the ability to buy these properties remotely, without the need of traveling to Dubai in order to finalize the purchase.
Doing everything with crypto is probably the best way to make this purchase. Cryptocurrencies are taken at the same level as normal assets in Dubai, with the UAE even trying to have half of the government transactions made through blockchain. When buying property in Dubai with crypto, transactions are fast, cheap, and secure, they also give you some level of anonymity, as you are not leaving a large paper trail behind you.
Frequently asked questions about Dubai properties by crypto buyers
Should I buy a house in Dubai with crypto?
Dubai is one of the friendliest places for cryptocurrencies and one of the best places for investing in property. Being the first country to release an official crypto policy and even creating special agencies for digital assets, conducting business and transactions in Dubai with crypto is simple. Because of this, it is a good idea to use cryptocurrencies when buying a home in Dubai.
What types of properties are in Dubai?
The most popular type of property in Dubai is apartments. There are countless different apartment complexes scattered across the whole city ranging from cheap ones to very expensive ones. The next most popular property type is villas, which are designed for big families. These villas can be in big villa communities with 50-60 villas in each community, and there are also smaller compounds with 20-30 villas in each. Other popular types of properties are penthouses and commercial properties such as offices and shopping complexes.