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
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