The Dubai government has implemented a new regulation stipulating a maximum cash transaction limit of Dh55,000 for all future real estate transactions. This means that individuals can only make cash payments up to Dh55,000, with all subsequent payments required to be conducted through banking channels.
Currently, physical cash transactions represent 20% of all property transactions in Dubai. With the new regulation on the horizon, property developers are hurrying to finalize all cash sales before its implementation.
In response to this development, the CEO of a prominent private development firm stated, “It’s evident that there is a push to reduce all-cash transactions in Dubai’s property market to enhance transparency in such deals.”
Two major real estate companies have already begun enforcing these regulations, a significant move given their combined contribution of 30-40% of property sales in terms of value.
There are indications that these limitations on cash purchases may be expanded in the near future. This policy shift aims to combat money laundering in the country and is an extension of existing anti-money laundering (AML) and know-your-customer (KYC) regulations.
In summary, this impending regulation marks a significant moment for Dubai’s real estate market, signaling efforts to increase transparency and combat illicit financial activities.
