Will rent-to-own schemes be the next big trend at the Dubai’s property market? With the demand shifting towards ready properties from off-plan, this could well be the best time for developers to make a strong case for rent-to-own.
Rent-to-own scheme is used when developers open up their homes to renting and then try to convince their tenants to turn into landlords. Under such agreements, the currently paid rents are structured as installments in the process of actually acquiring that property into the tenant’s full ownership.
The rent-to-own scheme allows a buyer to purchase the real estate unit within a specified time period at a set price, while the tenant/buyer also gets the very precious opportunity to go out of the scheme at any time without any liability.
But developers will still need to get regulatory clearances at the Dubai Land Department/Rera. “Rent-to-own rules must be perfectly clear to all to cover termination and protect both developers and buyers,” experts insist.
In 2010-2011 some Dubai property developers offered rent-to-own schemes, which prooved to work quite well. For example, The Lakes became one of Dubai’s first gated communities where Dubai master developer Emaar had introduced rent-to-own schemes in the last decade. But with further market growth and a surge of affordable off-plan units coming to the market, these options were cast aside. Well, it was only unit now.
Today many of Dubai’s master-developers are offering rent-to-own schemes at some of their recently completed developments.
Nick Maclean, CBRE’s regional head, said: “Some development schemes in Dubai are facing a large quantity of stock in one location and at the same time. That undermines developers’ position in terms of pricing.”
The only thing Dubai developers mustn’t do, when turning to rent-to-own offering, is overprice their units. And, also, they should hurry to present the right schemes to successfully compete with landlords offering lower rents and multiple cheques and with rent-free periods.
Whether to indulge into rent-to-own scheme, or to search for a best off-plan offer with flexible payments and a low-rated mortgage for the entering payment, or to buy a quality ready-to-move-in apartment in Dubai, the choice is always yours.
And IMEX Real Estate will always support any of your decisions. Address the professionals! We have many lucrative options in different market segments to offer, including 10 per-cent guaranteed ROI on fabulous serviced apartments with beach access at
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