- Al Msaddi says landlords believe cryptocurrency initiatives will attract educated, savvy tenants
One of Dubai’s largest real estate brokerages revealed today that some landlords will start accepting Bitcoin payments for residential property rental within one of the city’s major new developments starting next month.
On the opening day of Cityscape Global, fäm Properties said that from 1st October a number of landlords whose properties are managed by the company are willing to accept Bitcoin rental payments for a limited number of apartments at City Walk, the new destination in the heart of Jumeirah. provided there are clear regulatory guidelines in place.
Firas Al Msaddi, CEO of fäm Properties, said the initiative had been inspired by the recent announcement that a real estate project at Dubai Science Park is to be the first major development where buyers can purchase property in 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.
“From the start of October they will sign a one-year contract with tenants who wish to pay in Bitcoin, and they will transfer the equivalent of 12 months’ rent to the landlord’s Bitcoin wallet.”
One of the landlords, prominent Emirati businessman Essa Al Khoory, said: “I’m very happy to have entered into an agreement with fäm Properties to facilitate the Bitcoin rental payments for apartments at City Walk. This is the future for real estate, and it’s exciting to see this happening first in Dubai.”
Fäm Properties is currently in discussion with two developers with a view to them starting to accept Bitcoin as currency for their projects.
“We aim to take the market lead in this area,” said Al Msaddi. “For all Bitcoin transactions, we will be carrying out the necessary KYC (Know your customer) background check on all tenants.
“There are currently several players in the market preparing to launch Bitcoin related initiatives and it’s appropriate that this is all happening in Dubai which is a great driver and inspiration for innovative ideas.”
Last week two British entrepreneurs announced that Bitcoin purchases will be accepted for Aston Plaza and Residences, their luxury development spanning more than 2.4 million square feet and split across two 40-storey residential towers at Dubai Science Park.
At Cityscape Global this week, fäm Properties is partnering with ARTAR Real Estate Development as master real estate agent for the developer’s Mada Residences luxury residential tower in Downtown Dubai, which is on course for completion by 2Q 2018.