With rental prices on the rise in Dubai, the rent-to-own property market has become a popular choice once again.
Upscale communities such as Dubai Marina, as well as mid-range areas like Jumeirah Lake Towers (JLT) and Jumeirah Village Circle (JVC), are witnessing a surge in interest for the "rent-to-own" concept. The surge in rental prices injects new vitality into this concept, making it widely welcomed once more.
As rental prices continue to increase in most areas, some communities are beginning to stabilize after experiencing three years of continuous escalation. This trend is driven by population growth, which reached 3.696 million as of May 25.
In these high-priced areas of Dubai, the "rent-to-own" scheme is highly favored and advantageous. It allows people to own their dream homes relatively effortlessly while also saving on rental expenses.
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The Real Estate Regulatory Authority (RERA) adjusted rental calculations in early March this year, prompting many tenants to explore strategies for managing housing costs and achieving long-term financial stability. One option is pursuing homeownership through the "rent-to-own" scheme. This not only allows tenants to build equity but also stabilizes their monthly expenses, providing landlords with a sense of financial security in their investments.
Data from Dubai property management companies indicates that by 2024, the "rent-to-own" arrangements will increase, especially in upscale communities like Downtown Dubai and Dubai Marina, as well as mid-range areas like JLT and JVC.
Sachin Kumar Singh, Managing Partner and Business Head of Foremen Fiefdom, remarked, "Through the rent-to-own scheme, tenants can lock in current market prices, avoiding the possibility of significant rental hikes in the coming years. This creates stability and financial predictability, especially appealing to those with long-term housing goals."
The rise of these trends is seen as a balancing act between landlords and tenants to find common ground, helping both parties achieve satisfactory outcomes.
"The option of rent-to-own is once again in focus, providing eligible tenants with a pathway to eventual ownership... The vibrant rental market in Dubai injects new vitality into the concept of rent-to-own." This trend enables tenants to identify properties they like and negotiate ownership with willing landlords. These agreements often come with flexible payment structures, making them highly appealing to aspiring buyers who may not have sufficient down payments.
