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0 CommentsOpening up the UAE real estate to cryptocurrency payments could be the biggest change to the sector since the Palm Jumeirah was announced, said Christopher Flinos, the CEO of Hayvn.
According to Hayvn CEO, the benefits of crypto payments, including no cheques, no loans, no fees, no taxes, and lower costs, make better houses more affordable for customers.
Recent moves by UAE property giants such as Nakheel and Damac have cemented the use of crypto for real estate transactions in the UAE. For instance, Nakheel customers can now pay for their rent, service fees, and real estate purchases using cryptocurrency.
UAE real estate developer Damac Properties also revealed that it would begin accepting Bitcoin and Ethereum as payments for property purchased.
“We expect real estate company equity prices and property valuations which lag public equities to react very positively to this massive stimulus injection,” Christopher Flinos told Arabian Business.
As per him, UAE residents and investors will be able to pay their rent or buy houses using cryptocurrencies, starting transaction sizes as small as AED 100.
Commenting on whether such payments will attract first-time homeowners to the UAE residential market, he added:
“Approximately 68% of cryptocurrency holders are under 30 years of age, and together they comprise a market above $1 trillion. The benefits of crypto payments include no cheques, no loans, no fees, no taxes, lower cost, and you can afford a better house for your family because you made lots of money trading in crypto.”
Hayvn Research also shows that in economies with volatile domestic currencies – defined as currencies that move more than 7.5% over 12 months – real estate prices are only 3.7% more volatile than in countries with more stable domestic currencies. The firm expects this to be true for cryptocurrencies, as well.
Sharing his thoughts on the challenges facing the adoption of such payments in real estate, Flinos said:
“Consumers need to trust the system and that the payments process works. This can be overcome by working with regulated corporations. The UAE is a cryptocurrency hub and this move further cements this incredibly wise position taken by the leaders of this great nation. At Hayvn, we are humbled and honored to be working with the UAE Government to further develop the society. And it has a number of regulatory hubs, including the leading ADGM regulatory center where Hayvn is fully regulated.”
According to Khaleej Times, major Dubai-based real estate developer Damac Properties has recently revealed that it would accept payment for property in Bitcoin and Ether.
The company noted that enabling such payment will give more options and will be convenient for real estate investors. Also, the Dubai-based property developer believes that facilitating property purchases using cryptocurrency could revolutionize the real estate industry.
Damac was established in 2002 and provides residential and commercial properties in the United Arab Emirates (UAE), with an international presence in Qatar, Lebanon, Jordan, Oman, Saudi Arabia, Iran, and the United Kingdom.
