Dubai South has become the first master-development in Dubai to launch rent-to-own schemes, as the state of the Dubai property market has developers come up with reworked selling strategies. The schemes have a 10-year payment plan. People who sign up are under no commitment to purchase. Those choosing to avail the offer will receive two months of free rent at the start of their contract.
In this particular offer, tenants/buyers can make quarterly payments and there is also no down payment, no need to negotiate with banks for mortgages. For a token down payment or even zero upfront costs, a resident in Dubai can rent a home direct from a developer, keep paying rents over years, and if or she decides, end up buying it. With the offers rent – to – own, people can afford to buy a property, these offers have been limited to a building or set of buildings rather than across a massive destination.
The Abu Dhabi master-developer Aldar too has been offering rent-to-own schemes at its communities – and chances are this could be the next big trend in the UAE real estate market.
In many cases, the v is kept at 5 per cent or 10, and the installments come to Dh2,500-Dh3,000 a month, and in Dubai South’s case, the developer is not even asking for a down payment.
The destination is likely to see more projects getting completed before the year is out, and the Expo 2020 now scheduled for next year, it gives the developers to work on their plans.
Before stepping into rent-to-own schemes, the tenant-cum-buyer should keep in mind a few details. First make sure the agreement offers flexibility on exiting an agreement without the obligation of buying the property. Second, since no banks are involved, it is the developer that is directly involved in the financing of the deal.
Patrizia Marin
