On September 3, 2025, today, let's talk about a particularly 'trendy' topic.
Imagine this: you have worked hard to 'mine' or invest for years, and a pile of Bitcoins or Ethereum is lying in your wallet. In the past, you could only watch the numbers on the candlestick chart either ecstatic or heartbroken, wondering how to turn it into real money. But what if I told you that now you can directly use these digital codes to buy a visible and tangible sea-view villa in the UAE, where 'gold is everywhere'? How would you feel?
This is not a science fiction novel, but a reality that is happening.
Recently, a heavyweight publicly listed real estate developer in the UAE—RAK Properties—officially announced an astonishing move: they have begun accepting cryptocurrencies such as Bitcoin and Ethereum for purchasing their properties.
Once the news broke, it was as if a stone was thrown into a still lake, creating ripples in both the real estate and cryptocurrency circles. This is not just a simple marketing gimmick but a strong signal: the crypto world, once regarded as 'virtual' and 'ethereal', is accelerating its 'invasion' of our most traditional and solid physical world in an unprecedented way.
Today, we will take a deep dive into how buying a house with Bitcoin really works and what future it signifies.
The protagonist appears: Who is RAK Properties?
First, we need to clarify what kind of company made this decision. If it were a little-known small company, it might just be a publicity stunt. But the protagonist this time, RAK Properties, is not an unknown entity.
RAK Properties is one of the largest publicly listed real estate developers in Ras Al Khaimah (RAK), UAE. Established in 2005, the company was founded by the ruler of Ras Al Khaimah himself, with a strong background. You can think of it as the local 'real estate aircraft carrier', with a capital of 2 billion Dirhams and a substantial land reserve in prime locations. They develop high-end residential and resort projects like Mina Al Arab, focusing on a 'luxury lifestyle'.
Therefore, when such a strong developer with government backing decides to embrace cryptocurrencies with open arms, it carries a different weight. This indicates that they have thought it through and have seen a real, significant emerging market.
'How does 'virtual currency' turn into 'physical bricks'? Revealing the entire transaction process.
Many people's biggest question is: how does this transaction work? The price of Bitcoin is so volatile; today it might buy you a living room, and tomorrow it might only be enough for a bathroom. How do you sign the contract? How do you pay?
This is precisely the smartest part of this collaboration. RAK Properties itself does not directly handle cryptocurrencies. They introduced a key 'intermediary'—a global payment platform called Hubpay.
Although the official textbook-style step-by-step guide has not been released, based on existing information and industry logic, we can reasonably deduce that the entire process is roughly as follows:
Locking in the fiat price: You have your eye on a RAK Properties house, for example, a villa worth 5 million AED. The contract you signed with the developer clearly states the price as 5 million AED, not a certain amount of Bitcoin. This is the crucial first step, perfectly avoiding the price volatility risk of cryptocurrencies. What the developer wants is a certain amount of money, not a floating digital asset.
Generate cryptocurrency payment instructions: At the payment stage, RAK Properties will provide you with a payment instruction through their partner Hubpay. This instruction will include: a one-time cryptocurrency wallet address, and the exact amount of Bitcoin or Ethereum you need to pay based on the real-time exchange rate. For example, according to the market price at that time, 5 million AED is approximately equivalent to 20 Bitcoins.
Buyer transfer: What you need to do is transfer these 20 Bitcoins from your personal wallet to the address provided by Hubpay within the specified time (usually very short, such as 15-30 minutes, to lock in the exchange rate). The speed of blockchain transfers, especially for international payments, may be much faster than traditional bank wire transfers, and it eliminates many cumbersome procedures from intermediary banks.
The magic of the 'intermediary': instant exchange: this is the core of the entire process. After receiving your Bitcoin, Hubpay almost instantly sells it at a cryptocurrency exchange, converting it into the UAE's legal currency—the Dirham. Then, Hubpay will settle these 5 million Dirhams to RAK Properties' corporate account.
Transaction completed, property transfer: RAK Properties' finance department has received the actual 5 million Dirhams. For them, this is no different from any ordinary bank transfer receipt. Next comes the standard property transfer process: signing legal documents, registering with the land department, and you receive the property certificate (Title Deed), becoming the legal owner of the house.
Did you see that? The entire process is designed very cleverly. Buyers (cryptocurrency holders) make payments with assets they are familiar with, while sellers (developers) do not have to bear the price volatility, compliance, and technical risks associated with cryptocurrencies. Licensed payment institutions like Hubpay act like a 'translator', seamlessly converting the language of the crypto world into a language that the traditional financial world can understand and accept.
As for the fees and exchange rates charged by Hubpay, although specific numbers have not been publicly disclosed, such platforms usually profit by adding a small 'spread' to the real-time exchange rate or charging a certain percentage in fees. Considering the competitiveness of large transactions, the overall cost may still be attractive to international buyers seeking convenience.
Why the UAE? A land embracing the future.
RAK Properties' move is certainly not accidental, but rooted in the unique soil of the UAE. If you follow global technology and financial trends, you will find that the UAE, particularly Dubai, is frantically positioning itself as the global 'cryptocurrency capital.'
Clear regulation, rather than prohibition: Unlike some countries that take a hardline approach to cryptocurrencies, the UAE has taken the path of 'sandbox regulation' and 'active guidance'. They have established a dedicated virtual asset regulatory authority (VARA) and introduced federal-level virtual asset laws. Translated, this means: we welcome you to play, but you must stay within the circles I draw and follow my rules. Want to open an exchange? Sure, but first, get a license. Want to do crypto payments? Sure, but you must comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.
Strict anti-money laundering scrutiny: This is also a concern for many people. Will buying a house with Bitcoin become a hotbed for money laundering? The UAE government has anticipated this. They have clearly stated that any real estate transaction involving cryptocurrency payments must be reported to the Financial Intelligence Unit (FIU). This means that the source of funds for every transaction will be strictly scrutinized, and there is no way to use this method to transfer assets of unknown origin.
Attractive tax policies: For global crypto investors, the UAE has another enormous attraction: taxes. Currently, the UAE does not impose capital gains tax or income tax on individuals' cryptocurrency investment gains. This means that the money you earn in the crypto market can be more fully invested in physical assets like real estate. The appeal of this is self-evident.
A trend that has long been established: In fact, RAK Properties is not the first to take this step. As early as 2022, two other well-known developers in Dubai, Damac and Binghatti, had already announced they would accept Bitcoin and Ethereum payments. RAK Properties' follow-up further confirms that this has become a new norm in the UAE real estate market, rather than an isolated case.
All of this indicates that the UAE is playing a big game. They hope to attract global digital nomads, crypto new elites, and blockchain enterprises, transforming their digital wealth into real investments in the local economy. Real estate, undoubtedly, is the best vessel to accommodate this wealth.
Far-reaching impact: This is not just about buying a house.
RAK Properties' 'breaking the circle' action has significance far beyond just selling a few houses.
For cryptocurrencies, this is a 'battle for recognition'.
For a long time, the biggest application scenario for cryptocurrencies like Bitcoin seemed to be 'speculation'. However, when they can be used to purchase large physical assets, their 'currency' attributes are greatly enhanced. This proves that it is not just a speculative tool, but also a medium that can be accepted by mainstream commercial society for value storage and exchange. Moving from the virtual to the real is a milestone leap in the development history of cryptocurrencies.
For the real estate industry, this is a 'great pioneering' of the customer base.
How many 'crypto new elites' are there in the world? No one can say for sure, but this is undoubtedly a huge group holding vast wealth and highly globalized. In the past, they wanted to convert digital wealth into physical assets, but the process was cumbersome and costly. Now, developers in the UAE have opened a direct door for them. This not only has the potential for considerable incremental sales, but also firmly binds their brand image with 'innovation', 'future', and 'technology', which is crucial for attracting the wealthy younger generation.
Although there is currently no public data on how many transactions RAK Properties has completed through this new method, nor any data indicating this move's direct quantitative impact on its stock price or property prices, this does not prevent us from seeing its enormous demonstration effect.
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