Buying property in Dubai is a serious step involving large sums of money. Payment is always a sensitive issue: some use bank transfers, others use manager checks, and still others prefer the more traditional and seemingly simpler method of hand-to-hand payment.
This method is actively used by investors from Russia, Ukraine, and other countries, as it allows them to bypass banking restrictions and quickly complete the transaction. However, like any other instrument, hand-to-hand has its strengths and weaknesses.
What is hand-to-hand when buying real estate?
Hand-to-hand refers to the direct transfer of cash from the buyer to the seller (or developer/agency representative). This can occur:
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at the developer’s office;
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at a real estate agency;
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in person, sometimes with the participation of lawyers or brokers.
Typically, this format is used for the initial payment (down payment) or when making a deposit for an apartment/apartment.
The benefits of hand-to-hand payment when paying for real estate
1. Maximum speed
There’s no need to wait for bank confirmations or SWIFT transactions. The funds are transferred immediately, and the transaction can be closed the same day.
2. Simplicity and clarity
The method is intuitive: pay the money and receive a receipt or contract. For those who don’t want to deal with bank documents or cryptocurrencies, this is a convenient solution.
3. Independence from banks
There’s no risk of your transfer getting stuck or blocked. This is especially important for citizens of countries with currency restrictions.
4. Flexibility
Payment can be made in either dollars or dirhams (most commonly, AED). Many developers readily accept this option.
Disadvantages of hand-to-hand
1. Limited amounts
Hand-to-hand payments are primarily suitable for partial payments, deposits, and small payments . For projects involving millions of dirhams, developers often require a manager’s check or bank transfer.
2. Risks when transferring cash
Any transaction involving large sums of cash carries risks: loss, theft, or unscrupulous intermediaries. Therefore, it’s safer to conduct hand-to-hand transactions only at the offices of developers or agencies.
3. Not always suitable for legal transactions
In some cases, notaries or government agencies require confirmation of payment by an official instrument (check or bank transfer).
4. Currency conversion issues
Before paying, you still need to exchange rubles or hryvnias for dirhams. This is a separate process, and choosing a favorable rate and a reliable intermediary is crucial.
When hand-to-hand is appropriate
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To make a deposit for an apartment or flat.
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To pay for part of the transaction, if the main amount goes through the manager check.
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For “first-level” transactions—for example, purchasing from a private seller without bank involvement.
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To quickly confirm the investor’s readiness to purchase.
Result
Paying for real estate hand-to-hand is a convenient, fast, and flexible method widely used in Dubai. Its main advantages are its simplicity and freedom from banking restrictions. However, it does have its limitations: large sums are rarely paid in cash, and the security of the transaction directly depends on how and where the transfer takes place.
Therefore, hand-to-hand is ideal for down payments and deposits , but when purchasing an entire apartment or villa, it is better to combine this method with other instruments – for example, a check manager.
