- For the first time in Dubai, rent-to-own property is available with a 20 year payment plan
With current supply and demand, we are seeing the re-emergence of rent-to-own as it is an excellent way for both buyers, to affordably become homeowners and for developers, to sell some of their available, ready stock. As Lynnette Abad, Director of Research and Data for Property Finder Group notes, “2018 saw the completion of nearly 29,000 new residential units, and another 46,000 are slated for 2019 completion and currently have a completion status of 65% or more”.
With the latest trends which became popular in 2018, developers are offering payment plans of 5 or 7 years whereby the buyer also owes a percentage upon booking and then various amounts due along completion stages of that property. However, many buyers experience difficulty with purchasing a property this way as they are already paying rent on the property they’re living in and are further extending themselves by owing installments on a second property that is not yet ready. With rent-to-own, the property is already ready, and can be moved-into and the repayment period is almost triple that of traditional developer post-handover payment plans.
One local developer, Harbour Real Estate, has introduced a payment scheme where owners have 20 years to pay off a ready property. Options range from paying in 10, 15 or 20 years, which mirrors the time frames many banks offer on mortgages. Properties that are available with this new rent to own payment plan are in desirable locations like Motor City and Dubai Land for both apartments as well as villas or townhouses.
Mohanad Alwadiya, CEO of Harbor Real Estate says “this is an excellent opportunity both for buyers and investors, as buyers have a lengthier period to pay off their home and investors are able to collect rent immediately. The amount due with this scheme is less than most people’s average rental payment each month.”
Property Finder research has looked at a number of post-handover payment plans offered in the market and found that the monthly payments range between 18-20 thousands dirhams per month. As Lynnette Abad notes, “spreading the amount due over 10, 15 or 20 years, is much more affordable and attainable to the average consumer.”
Participating in the rent to own scheme means that buyers can affordably purchase a property with no down payment, or just 5% down, without the hassle of interest rates or hidden fees and as Alwadiya notes, “the properties being offered are more or less the going market rate, additionally, the amount due can be settled early without any penalty. In the event a buyer paying off a property as a rent to own wants to sell that property, it can be offered for sale and the new buyer can continue the same payment plan. A local bank account with cheques is required.”
Recent development from the Dubai Land Department has made rent-to-own even more attractive. Under the supervision and with the guidance of the Dubai Land Department led by His Excellency Sultan Butti Bin Mejren, Alwadiya notes that “A title deed is immediately given from the Dubai Land Department for that property through a rent to own scheme whereby buyers have up to 20 years to pay off the property while the title deed is in their name. This specific title deed reads that this is a title deed registered against a payment plan.”
Like many of Dubai’s accomplishments, rent to own with a proper title deed is a first for the larger MENA region and sets a trend for other markets to follow.
For media enquiries, please contact
Anna Lucas Southgate at
firstname.lastname@example.org or on
+971 55 115 9971
About Property Finder
Property Finder is the Middle East and North Africa’s leading real estate portal with presence in seven markets including Saudi Arabia, Egypt, Morocco and the United Arab Emirates.
The premier resource when looking to buy, sell, lease or rent, Property Finder attracts nearly 6 million unique monthly users across its mobile apps and websites, with over 2,375 registered brokers and developers.
© Press Release 2019
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.