Crypto millionaires and entrepreneurs are gradually establishing a presence by investing in assets, and Dubai appears to be one of the primary beneficiaries of this shift of wealth. According to a study conducted by Morgan's International Realty, the number of crypto investors and entrepreneurs acquiring property through the firm surged by 331% during 2021, in comparison with 2020 (YOY), with 83% of these investors entering the market during the second half.
This happened to coincide with Bitcoin reaching an all-time high and, whereas most of the globe was fearful of another lockdown due to COVID 19, these generally young clientele opted to lock in several years' worth of gains and began their search journey for a new, safe, and crypto-friendly city.
Elias Hannoush, the Managing Director of Morgan’s International Realty, states "Throughout 2021, we have witnessed an increase in the number of inquiries and transactions by cryptocurrency entrepreneurs and millionaires. We chose to delve deeper into our clients' profiles and historical data in order to have a thorough understanding of the elements that contributed to this new trend''. In continuation, he adds that "Dubai sets an example for other places in the world, as it is very appealing to be in a city that’s so dynamic and flexible. Whereas challenges encountered by other cities or nations may be seen as an opportunity here, in this case, the rate of adaptability favors the economy. "
To truly understand this new trend in the dynamics of the real estate market geared by crypto millionaires, it is essential to look at what propelled these investors to turn their attention towards Dubai.
The Rise of Blockchain Adoption in Dubai
One of the most significant elements that have drawn the attention of crypto millionaires is the widespread deployment of blockchain technology. In the past years, the UAE has established itself as a critical worldwide jurisdiction by adopting a favorable attitude toward blockchain and cryptocurrency businesses.
The Dubai Blockchain Strategy, which is part of His Highness Sheikh Mohammed bin Rashid Al Maktoum's revolutionary vision, will aid the city in realizing its potential as a global financial center and the world's happiest city.
Additionally, the Dubai Blockchain Strategy represents a collaborative effort between the Digital Dubai Office and the Dubai Future Foundation to continuously pursue and assess cutting-edge technological innovations that demonstrate the possibility of implementing more seamless, safe, effective, and compelling city experiences.
Furthermore, according to the Dubai Media Office, the Dubai World Trade Centre (DWTC) will become a cryptocurrency enclave and a regulator for cryptocurrencies and other virtual commodities as part of efforts to attract new businesses as regional economic competition increases.
Blockchain Implementation Impacts Dubai’s Real Estate Market
When it comes to real estate investments, the rise of cryptocurrencies has strongly fueled demand as early adopters who made their fortunes from digital currency want to diversify their holdings. Acquiring a cash-flowing asset such as real estate will enable crypto millionaires with a continual stream of income to invest in crypto while simultaneously providing them with the security of a considerably less volatile asset class.
According to recent research provided by Morgan's International Realty, residential property values in Dubai have increased by 24% since 2020 owing to the UAE government's response to the pandemic by enacting economic supporting initiatives and beginning the biggest legal reform in its history.
Dubai's initiatives in the blockchain field represent another reason that will impact the property market positively, as these measures signal the city's intention to pick up the pace in this industry. Overall, these favorable endeavors for those active in the crypto field, coupled with the attractiveness of Dubai’s real estate market, will push the demand for real estate investments made by crypto millionaires further.