As of Sunday October 1, property and real estate brokers in Dubai will start accepting digital currency bitcoin for rent payments.
Some landlords, according to Arabian Business, will soon start accepting bitcoin payments for residential properties, following the news that fäm Properties confirmed a number of its landlords looking after apartments in City Walk will be the first to take the leap.
Of course, clear regulation, laws and legal processes will have to be in place before using digital currency to pay for rent is commonplace across Dubai, but it’s an encouraging start and may prove to be one of the most secure and future-proof forms of payment used in the city going forward.
Firas Al Msaddi, CEO of fäm Properties, says the news comes off the back of recent real estate projects in Dubai Science Park which saw buyers purchasing whole properties using bitcoin.
“Some of the landlords we’re representing in property management at City Walk were very excited by the news because they’re bitcoin traders, and they believe that bitcoin opportunities in real estate will attract educated and savvy tenants,” he said.
At this stage, the entire year’s rent has to be transferred in one chunk, which can be a prohibitive amount for many people, but it is worth highlighting that this is a trial period for both the property management company, the landlord and the tenant.
If you’re unfamiliar with bitcoin, it’s an secure virtual currency, which can be traded directly between individuals or with more than 100,000 merchants worldwide. It’s open-source, meaning it’s free to use, it’s not associated with or owned by any brands, and as a result comes with low processing fees, making it attractive for global transactions.
For more information about bitcoin, head to www.bitcoin.org.