Buying Real Estate In Dubai with Stablecoins: Do’s and Don’ts

Dubai has become a hub of real estate investments. With billions of dollars pouring into this market each year, prices are on the up and up, with many people now trying to take advantage of this opportunity. Using stablecoins for these purchases is one of the best and most popular ways to pay, considering the benefits that come with using stablecoins, its popularity should come as no surprise. But these benefits do not mean this is a perfect system. In this guide, we will go over this topic and explain how buying real estate in Dubai with BUSD or any other crypto works.

Things to know about buying real estate in Dubai with stablecoins

1. The most commonly accepted stablecoins in Dubai are USDT and USDC
2. When buying properties in Dubai with stablecoins, transactions are fast and cheap
3. Each developer and real estate agency in Dubai won’t be accepting the same stablecoins
4. Using USDC is probably the cheapest way to buy real estate in Dubai with stablecoins

Guide on buying properties with stablecoins in Dubai

When we wish to invest in Dubai’s real estate market, there are many ways to do so, and using cryptocurrencies is one of these options. There are quite a few different real estate agencies and developers that accept crypto as a payment method these days, considering the fact that the UAE is one of the friendliest countries when it comes to crypto. There are many different cryptos that you can use, but the most popular ones are stablecoins as they have stable values and are easily used for making transactions. Here we will be taking a look at these stablecoins and seeing how they work when buying real estate with them in Dubai.

Most common stablecoins accepted in Dubai

There are many different stablecoins in the market, with the likes of USDT, USDC, BUSD, and DAI each having billions in circulation, while coins like USDP, TUSD, USDD, and others have hundreds of millions of tokens in the system. Having such a large selection means that not every stablecoin is accepted by every seller. Each token is operated by different blockchain developers, built on different systems, for different purposes. 

When it comes to the most commonly accepted cryptocurrencies there are two tokens that most agencies and sellers have on their list; namely USDT and USDC, and buying real estate in Dubai with USDT is probably the most popular way when it comes to purchase properties with cryptocurrencies. USDC is the second most common stablecoin that is accepted by these developers and the reason why it is so popular is that it can operate on a Solana network, meaning that there are practically no transaction fees, as each big transaction will cost you a fixed fee of 0.000005 SOL per signature. The third most popular way is to buy property in Dubai with BUSD. This stablecoin is popular based on the fact that BUSD is a native stablecoin of Binance, the world’s largest crypto exchange, which gives it a good level of security, and people trust it, knowing that it has a strong developer behind it.

How do stablecoin transactions work

When you are looking to buy real estate with USDT in Dubai or any other stablecoin, the transactions are generally always done in the same way. The beauty of using stablecoins is that, essentially, you are buying a property with crypto that resembles traditional fiat currency but still benefits from the features of blockchain technology. When you want to purchase real estate with stablecoins, the first thing you have to do is get some crypto, if you don’t already have some sitting somewhere in a crypto wallet.

Buying stablecoins in big quantities is relatively easy as there are 4 coins that have tens of billions of tokens in circulation and there are many different exchanges that provide you with OTC services, and you can purchase these tokens through them in a simple and fast transaction. 

Once you have your tokens the next part is to use them to buy property in Dubai with BUSD or whichever stablecoin you acquired. We would also suggest you check which stablecoins are accepted by the seller or a real estate agency you are working with prior to buying these tokens. You simply need to ask the seller or an agency to provide you with a wallet address to which you are required to send the crypto. Once the transaction goes through, you can then close the deal and finalize the purchase. This transaction is simple and fast as Dubai has no taxes on any sort of income, sales, or purchase, meaning there is less paperwork to do and things move faster than they would when buying property in another country. 

We also need to warn you that you will still need some fiat currency for your purchase. When you buy a property with USDT in Dubai, there will be some additional fees associated with the purchase. This will be an initial deposit, government fees, registration fees, and more. While some fees can be paid with crypto, there are still some that need to be done using regular old fiat money.

Benefits of using stablecoin real estate in Dubai

When you are buying real estate in Dubai with stablecoins there are multiple benefits that you can take advantage of. First of all, we need to mention how easy it is to use stablecoins when making a purchase. International banking has become fast and simple, especially with the introduction of SWIFT, but there are still some problems associated with it. For instance, when making international transactions money has to go through a number of different parties and each party has its own rules and regulations to abide by. What this means is that transactions can be slowed if one party were to have some problems. There are also weekends/holidays and time zones to consider, all of which can really slow things down. Banks don’t work on weekends and as we are making an international transaction there might be time zone differences and if a bank in one country is working, the banks might be closed in another one. Things like this will slow transactions even more. There are also a bunch of fees associated with international transactions. As big money flows through the SWIFT system, every party involved wants a piece of the cake, meaning you might be charged multiple small fees that will add up to a pretty significant sum once the transaction is complete.

But when you are buying BUSD real estate in Dubai or any other stablecoin, most of these problems are not present. Each stablecoin transaction is done using blockchain technology, meaning that there is no third-party involvement, and transactions are done directly from person to person. The only involvement of third parties is when verifying this transaction and that is done automatically in a really fast and efficient manner. Blockchain also has no weekends or days off; in other words, this system is operational 24/7, so no matter the time of day or the day of the week, transactions will go through. When it comes to fees, while some blockchains might take high fees, most of the stablecoins operate on multiple blockchains, and you can simply choose the one you like the most. For example, when transferring USDC using a Solana blockchain, there is a simple fixed fee of 0.000005 SOL, which are equal to a few cents per transaction, irrespective of the size of the transaction. Also when we mentioned that transactions are done strictly between parties, you are not leaving a big transaction trail behind, and it won’t be visible to many different agencies like normal fiat currency transactions are. 

We also need to mention how convenient it is to use stablecoins instead of regular cryptocurrencies such as Bitcoin and Ethereum. When we are buying these properties using crypto, we will be either given the amount of crypto we should send or the number of dollars and we have to send an equivalent amount in crypto. But as we know cryptocurrencies tend to be volatile, if we are given the dollar amount, by the time we get Bitcoin or Ethereum and send them to the seller or agency, the price might have changed and we will need to make additional payments to cover this difference. But since stablecoins are pegged and retain a $1 value at all times, we can make transactions in a fast, safe, and simple manner.

Risks associated with buying real estate in Dubai with stablecoins

Well, when there are so many benefits associated with something, it should not come as a surprise that there are also some drawbacks that might be faced. When you look at Dubai real estate, USDT is a very attractive payment method but there are some risks involved with these transactions. First of all, since transactions are done through blockchain, if, due to human error, you send the tokens to the wrong crypto wallet, the chances of seeing those funds again are very slim to none. As such, it is always a good idea to work with a well-respected and established real estate agency such as Coin Real Estate, just to be sure that everything is above board and will work out perfectly.

Final thoughts on buying real estate in Dubai with stablecoins

When you decide to buy real estate with BUSD or any other stablecoin in Dubai there is a lot to consider. First, it is important to choose the right stablecoin to use. Considering that there are many options with similarities, you have to realize that each coin also has some differences. These coins are just like regular currencies in a way, as they are pegged to USD, meaning that they are always worth $1, but they also have major benefits such as the speed of transfer and the anonymity that comes with it. Using blockchain for transactions is a good way to secure your payment, everything is done person to person without any third-party involvement. These transactions also tend to be cheaper, depending on which blockchain you use of course. It also needs to be noted that Dubai is one of the friendliest places for cryptocurrencies, with the UAE government looking at crypto just like regular currencies, even though it is not yet fully considered legal tender by the state. 
One more thing to be aware of is that crypto is notorious for scammers, so be on your guard and absolutely certain that you are making a legit transaction and that you are dealing with trustworthy people. The best way to do this is to go through a real estate agency that has experience in this sort of thing. In the UAE real estate agents do not charge a very high fee, but the value they bring to your transaction can be immense.  Remember, blockchain transactions are irreversible, once you make a payment, there is no way to get the money back, and if it ends up in the hands of some or other good-for-nothing charlatan, then you can kiss your cash and your dreams of owning property in Dubai goodbye.

Frequently asked questions about stablecoin real estate in Dubai