Cash transfers for real estate in Dubai are limited at Dh55,000
According to Khaleej Times, the Dubai government has implemented a new regulation that sets a Dh55,000 cap on all future cash transactions involving real estate.
This implies that a person can only pay with cash up to a total of Dh55,000; all subsequent payments must be made through banking channels.
Presently, twenty percent of all real estate deals in Dubai involve actual cash exchanges.
Developers are scrambling to wrap up all cash purchases before the new regulation takes effect because regulatory changes are imminent.
The CEO of a well-known private development company responded to this news by saying, “Clearly, there is a move to bring down all-cash sales in the Dubai property market for greater transparency on such deals.”
Two well-known real estate companies have already put these rules into effect. This is a significant move because the value contributed by these developers to property transactions accounts for thirty to forty percent of the total.
These limits on cash purchases may soon be extended, according to reports.
The country’s efforts to reduce money laundering are reflected in this policy reform. It is an expansion of its know-your-customer (KYC) and anti-money laundering (AML) laws.
All things considered, the upcoming rule marks a turning point for the Dubai real estate market.
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