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Will Dubai property market revive rent-to-own schemes?

10.06.2018

Is there a space for rent-to-own schemes at the Dubai’s property market today? With the demand shifting towards ready properties from off-plan, thing may change in their favor.

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.

But no matter how lucrative these schemes may seem, this industry field has its own pitfalls. 

Firtly, developers will 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. And until they become absolutely transparent, the chances for their comeback are rather dimmed.

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.

Today some of Dubai’s master-developers look for revival of rent-to-own schemes in case the market will turn in their favor.

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.”

Besides, now, developers will face the harsh competition with landlords offering lower rents and multiple cheques and with rent-free periods.

But, aside from rent-to-own, you still have a wide number of options to choose from among the best off-plan offers with flexible payments and a low-rated mortgage for the entering payment, or to buy a quality ready-to-move-in apartment in Dubai. 

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 Seven Hotel and Apartments Palm Jumeirah, or the best choice for a modern city dweller at a Seven City in Jumeirah Lake Towers.

So, please, don’t hesitate to contact us on:

Tel.: +7 903 232 80 80 Oleg Lavrik (Whatsapp, Viber, Telegram)

Tel. UAE: +971 (50) 2528188

Toll Free in Dubai: 800-IMEX (800-4639)

IMEX REAL ESTATE BROKER LLC, UAE

Office 2502, Marina Plaza, Dubai Marina, Dubai, UAE

Email: pm@IMEXre.com

Skype: resident69

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Lease process (Rent out)

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

Expenses of the seller:

None

Additional services:

Property management

Lease process (Rent)

1 hour

Contract of the lessee and agency.

Up to 5 days

Real estate search.

Selection of optimal options.

Up to 2 days

Signing of the lease agreement

Expenses of the lessee:

-5% agency commission of the annual contract price

Additional services:

None

Purchase process

1 hour

Contract of the tenant and agency.

~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

1 Week

Registration of the contract of purchase / sale

Customer charges:

  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration

Additional services:

Property management

Sales Process

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

Expenses of the seller:

None

Additional services:

None

the management process

1 hour

Contract of the owner and agency

1 year

Rendering of management services

1 day

Reporting

Expenses of the owner:

5% of the annual rental price

Additional services:

None

Investment Process

1 hour

Contract of the tenant and agency.

From 3 days

Selection of optimal investment options

1 Week

Registration of the contract of purchase / sale

Expenses of the investor:

  • 2% when investing in the secondary market
  • 0% when investing in a new building
  • 4% - registration

Additional services:

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