Leading Dubai developers to introduce strict limits on cash-based property transactions

Leading Dubai developers to introduce strict limits on cash-based property transactions

Right now, it's the biggest developers in Dubai bringing about limits on using cash in property deals. But sources say, the move will soon gain traction with private developers too. Image Credit: Shutterstock

Dubai: The top master-developers in Dubai are going to set strict limits on property and plot deals that involve cash only. This would mean that only up to Dh55,000 in cash can be used by the buyer in any transaction with these master-developers.

The rest of the payments will have to be through the banking system, which industry sources say is about bringing in stringent transparency into such deals. In the last three years, a sizeable share of property and land sales in Dubai have been through all-cash deals.

It is not known for now whether private developers too will bring in the same Dh55,000 ceiling on the cash component in their own sales to buyers.

Whatever be the case, the decision by the master-developers assumes significance. The local authorities are now pushing for all big-ticket transactions to be processed through the banking system.

This is what a master-developer said in a note to its clients: “We strongly recommend utilising alternative payments methods such as checks or electronic