Dubai limits real estate cash transactions to Dh55,000

The Dubai government has introduced a new rule that entails that all future cash transactions related to real estate will have a limit of Dh55,000, Khaleej Times reported.

This means that a person can make a cash payment only up to Dh55,000; after that, all payments are processed through banking channels.

Currently, physical cash transactions make up 20% of all property transactions in Dubai. 

With regulatory changes looming, developers are racing to conclude all cash sales before the new rule comes into effect.

Reacting to this news, the chief executive of a leading private development firm said: "Clearly, there is a move to bring down all-cash sales in the Dubai property market for greater transparency on such deals."

Already, two prominent real estate firms have enforced these regulations. This move holds substantial weight as these developers collectively contribute to 30–40% of property sales in terms of value.

Reports suggest that these cash purchase limitations could be further extended shortly.

This policy change is an attempt to curb money laundering in the country. It is an extension of its anti-money laundering (AML) and know-your-customer (KYC) regulations.

All in all, the impending regulation signifies a pivotal moment for the real estate market in Dubai.