Using crypto to pay for rent and buy UAE property is the biggest opportunity since Palm Jumeirah: expert
Opening up the UAE real estate to crypto payments – including Bitcoin and Ethereum – could be the biggest change to the sector since the Palm Jumeirah was announced, an expert has said.
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, the CEO of Hayvn, said.
UAE residents and investors will be able to pay their rent as well as buy houses using cryptocurrencies, the CEO of Hayvn confirmed, adding that the firm can do transaction sizes as small as AED 100.
Commenting on whether such payments will attract first-time homeowners to the UAE residential market, Flinos added: “Approximately 68 percent of cryptocurrency holders are under 30 years of age and together they comprise a market in excess of $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 percent over a 12-month period – real estate prices are only 3.7 percent 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.”
Source: Arabian Business