Dubai Real Estate – Crackdown on Cash Transactions?

[BeyondBorders]

As I've done many times before, I walked into a real estate developer’s office in Dubai intending to settle a property purchase in cash. This time, however, things took a very unpleasant turn. Long story short: it seems developers are no longer permitted to accept or process cash payments.



I personally think this shift could have a notable impact on the market.



Of course, alternatives still exist,most notably, manager’s cheques. But those typically come with an added cost of 1–3% of the transaction value, depending heavily on your personal relationships and local network.

 

[happyjohn]

That’s an interesting change in Dubai’s real estate market.



It could definitely shake things up, especially with the added costs of manager’s cheques.

I’ve heard they’re a pain with the extra fees, but if you have the right connections, it might be easier. Still, it’s good to know cash is off the table for now.

 

[Martin Everson]

BeyondBorders said:






I personally think this shift could have a notable impact on the market.

Click to expand...



I wonder if it will though. People will continue to find a way as some developers accept crypto but with 1% additional charge. I think both Ellington and Leos still do this unless it's changed overnight . Not difficult to obtain crypto with cash I think.

 

[Houdini]

Martin Everson said:






Not difficult to obtain crypto with cash I think.

Click to expand...

many services around OCT offer this, easy to get it done.

 

[Fred]

I'm surprised that even so many people are still interested in buying Dubai Real Estate in Cash as nowadays even the local UAE Banks ask questions when you sell the property - so having couple of Millions in USDT or Cash to buy Dubai Real Estate and after 1-2 Years selling the Property again is not a rock solid source of funds as every Bank nowadays is asking for the source of funds of the cash that was used to acquire the Property.



Ellington was till recently one of the last Developers literally accepting cash this seems to have changed now.



A more elegant and organic way would be what I mentioned just here with a USDT to AED WPS Salary as an Employee with a Dubai Residence Visa and Personal Bank Account.







Obviously it has it's limitations and you can't dump so much volume at once in UAE Real Estate but you can build a Credit Score and start working with Banks or pay for Off-Plan Installments without having the fear that along the time-span of your Off-Plan the KYC and DD on your funds is increasing or changing.



When you later on sell the Property the source of funds was a good paid Salary for a high level Position in a domestic UAE Company - you get onboarded and pass every possible KYC - nothing better out there then having the track record as a sheep aka Employee.

 

[Aston VIP]

We work with several developers who still accepts cash, we also works with banks who also accept cash x millions - So everything is still possible (you just need to know the right people)