Purchasing real estate in Dubai requires a careful approach to transferring funds. Transactions often involve significant sums, so it’s important to choose a method that is fast, secure, and legally transparent . In practice, investors use several key transfer methods, each with its own characteristics, advantages, and limitations.
Bank SWIFT transfers
SWIFT transfers remain the most traditional and reliable method for sending funds abroad, especially when dealing with large sums required for purchasing real estate in Dubai. This method ensures complete legality and transparency of the transaction , as each transaction is officially recorded and processed through internationally licensed banks. For investors, this means they can always confirm the transfer if necessary, which is especially important during due diligence or when concluding a contract with a developer.
The SWIFT transfer process begins with the investor providing the recipient’s bank details—the account number, bank code, and destination country. It’s important to be careful at this stage: even a small error in the details can result in a delay or refund of the funds. After the funds are sent, the bank generates a transfer confirmation, which can be used as proof for the real estate seller.
One of the nuances of SWIFT transfers is fees and currency conversion . Banks may charge a fee for the transfer, as well as a currency exchange fee if the transfer is from the national currency to dirhams. For large amounts, these costs can be significant, so investors should clarify all fees in advance and plan the transfer so that the amount received by the developer fully corresponds to the agreed-upon amount.
Furthermore, transfer time is another factor to consider. SWIFT transfers typically take one to five business days, sometimes longer if multiple intermediary banks are involved. This means payment planning should take into account not only the transaction date but also potential delays, especially when making a deposit to secure a property.
Finally, SWIFT transfers provide additional legal protection . The bank acts as an intermediary, records all transactions, and can provide official payment confirmations. For the investor, this not only ensures security but also provides documentary evidence of the financial transaction, which is important for tax purposes and any legal issues related to purchasing real estate abroad.
Hand-to-hand or cash-to-cash transfers
Hand-to-hand, or “hand-to-hand,” is a method of transferring funds in person through a trusted intermediary , directly to the recipient. This method is becoming increasingly popular among investors buying real estate in Dubai, as it allows for complete control over the transfer process and the speed of the transaction . Unlike bank transfers via SWIFT, hand-to-hand allows for the transaction to be completed within one day, which is especially important for urgent transactions or deposits to secure a property.
The key feature of hand-to-hand transactions is trust in the intermediary. The security of all funds depends on choosing a trusted and reliable agent. A good intermediary records the amount, date, and terms of the transfer, and the investor receives written or electronic confirmation. This protects against errors and disputes: if something goes wrong, both parties will have official documentation confirming the terms of the transaction.
Furthermore, hand-to-hand transfers give investors complete control over the amount and the transfer process . They can observe the transfer, ensure that the amount is transferred completely and correctly, and immediately receive confirmation from the recipient. This level of control is especially important for large transactions involving hundreds of thousands of dollars, and every detail matters.
However, this method has its nuances. Hand-to-hand transfers are limited in scope: very large sums require additional security, sometimes accompanied by physical security or insurance. It’s also important to agree on all stages of the transfer in advance: the date, meeting location, and document recording procedure, to minimize risks and avoid misunderstandings.
Finally, hand-to-hand transactions allow you to bypass bureaucratic restrictions imposed by banks and foreign exchange controls , making them a convenient tool for investors who need to quickly make a deposit or pay for real estate without delays. The key to successfully using this method is choosing a reliable intermediary, ensuring transparency in all agreements, and documenting every step of the transaction.
Havala
Hawala is a traditional method of international fund transfers through a network of trusted intermediaries , which has been in use for decades and is particularly popular among Dubai real estate investors. The key feature of hawala is that funds don’t pass through banks , but are transferred from one trusted agent to another, making the process quick and relatively simple.
The main advantage of hawala is its speed and flexibility . Funds can be delivered to the recipient within a few hours, regardless of the sending or receiving country. For investors, this means they can pay a deposit for an apartment or a portion of the transaction amount as quickly as possible, which is especially important in the competitive real estate market, where delays can cost a missed opportunity.
Security in the hawala systеm depends on choosing a reliable agent and verifying their reputation . Investors must ensure that the intermediary has a proven track record of successful transfers, positive customer reviews, and official confirmation of their services. Only then can they be confident that funds will be delivered accurately and on time.
Furthermore, hawala allows the amount and exchange rate to be fixed in advance , minimizing financial risks associated with currency fluctuations. The investor agrees with the agent on the transfer amount and receives confirmation that it will be delivered to the recipient in the desired currency. This approach is especially useful for large real estate transactions, where the accuracy and transparency of financial transactions are critical.
However, this method has its nuances. Since the transfer occurs outside the banking systеm, it’s important to have written confirmations and documents documenting the agreement with the agent. This could be an email, a receipt, or an official transfer agreement. Such a document will protect the investor in case of disputes and ensure the transparency of the transaction.
Overall, hawala remains an effective and fast tool for investors who value speed, control, and the ability to bypass bureaucratic restrictions while maintaining security and transparency in their transfers.
