The luxury real estate market in Dubai remains a very lucrative and attractive investment sector. Dynamics and opportunities are also growing, not only in a variety of off-plan properties but also in payment methods. Cryptocurrency is a real trend in real estate transactions, and XEROF takes one of the leading positions in this field.
What’s happened in 2021?
By the end of 2021, there was a 17 percent increase in prices citywide across the entire market. In 2021, we witnessed a plethora of buyers for luxury villas and penthouses who demanded better quality properties, and bigger layouts and sizes. Transactions in certain luxury areas such as Palm Jumeirah and Emirates Hills have soared. (1)
Dynamics of Luxury Real Estate market
Dubai's real estate market is off to a roaring start to the year. The city recorded 11,071 transactions in January and February. The highest it has ever recorded in the first two months of the year, according to a CBRE report. The record follows a strong 2021: The total value of residential transactions in Dubai last year hit $35 billion. The highest the city has recorded since the global financial crisis — per a report from Savills.(2)
Demand for Luxury off-plan properties
Demand for off-plan properties — projects that have yet to be constructed — has been robust, Thomas Fawcett, the cofounder of Dubai-based luxury real-estate firm The Property, told Insider. Projects due to be completed in 2024 and 2025 are selling out in a day, Fawcett said. Dubai's property market remains popular with investors.
While Dubai's luxury real estate market has long been popular with Russian investors, the war in Ukraine has further boosted Russian demand. "We're receiving requests every day from Russia," said Fawcett. Unlike the West, the UAE has not levied sanctions against Russia. While it remains one of the few places in the world where Russian money is welcomed, with the tumbling ruble and sanctions kicking in, the difficulty now lies in completing the transaction.
"They want to buy, but they literally cannot deliver the payment," Fawcett said of Russians looking to make real-estate investments in Dubai.(2)
Cryptocurrency Gateway for Real Estate transactions
The number of cryptocurrency holders is also increasing. People are used to make purchases online with bitcoin, Ethereum, tether, and other cryptocurrencies. But when it comes to such high-value transactions like buying real estate with crypto, there is always a question: how to proceed with such a deal?
Many real estate agencies and developers can't accept it as a payment method. And not many banks can accept large amounts of money after exchanging them via traditional crypto exchange. They are not able to proceed with the KYC procedure. So, people need a service provider that is focused on real estate transactions and cryptocurrency.
XEROF is a Swiss-licensed crypto gateway, that is an expert in both fields (and more). The company is happy to provide financial services to businesses and private customers, exchanging a few crypto pairs, including BTC, ETH, USDT, and USD, EUR, and CHF, based on your contract of purchase.
How it works
The real estate agency collaborates with XEROF, and the buyer opens a XEROF account, provides a purchase agreement and identification documents, and transfers, for example, Ethereum to the XEROF digital wallet.
Then XEROF exchanges ETH to USD and USD settles straight to a seller’s lawyer’s bank account and the lawyer settles the transaction with the land department.
Conclusion
Despite the ups and downs the sector has witnessed over the years, real estate in Dubai has always bounced back and is now experiencing a boom with “a lot of interest and limited availability,” said Vladimir Minaev, senior property manager, Metoropolitan Premium Properties.
It is no secret; the Dubai market is booming especially in the luxury segment. The market is being driven by investors from the UK and other parts of Europe, CIS, Singapore all of whom are relocating their families to enjoy all that the city has to offer including safety and security, world-class infrastructure, a strong business environment, weather and so on.
However, like any other market, there is bound to be a correction, but we do not anticipate prices to drop as they did in 2008 or 2016. Prices per square foot in Dubai are lower than in other international cities and investors can also achieve, on average, between 5-10 percent higher rental yields than other more established markets. Right now, there is a lot of interest in Dubai’s real estate market and limited availability.(3)
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About XEROF
XEROF is a Swiss-licensed FinTech specialising in cryptoassets. Our Tier 1 banking network allows clients to seamlessly navigate crypto and fiat transactions to manage investments, treasury, and settle third party expenses.
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