Dubai to launch 0% interest ‘rent now, pay later’ scheme
The new initiative being proposed by the Dubai Land Department will make housing more accessible.
Dubai is set to introduce a new housing scheme that will completely transform the rental market.
Dubai Land Department is launching a new “Rent Now, Pay Later” scheme that will come into effect in September.
The new initiative will allow tenants to spread annual rent payments over 12 months without gaining interest.
The landmark housing reform has been developed by the DLD and a local bank.
It has been designed to make housing more accessible and provide tenants with greater payment flexibility.
A report from Emarat Al Youm has found that under the new initiative a tenant would select a residential property and then the participating bank would pay the landlord the full annual rent upfront.
The tenant would then repay the amount to the bank in flexible instalments over a period of up to 12 months at zero interest.
The final mechanism of the groundbreaking rental reforms are still being thrashed out.
Terms around eligibility requirements and details covering applications, financing, repayments and the relationship between tenants, landlords and the bank is expected to be announced when the service is officially launched.
When the reforms do come into force, then the new scheme could make Dubai the first city in the world to implement such measures as part of an integrated element of its rental market.
The latest is an expansion on DLD’s ”Flexi Rent” initiative, that was launched earlier this summer on June 23.
The Flexi Rent initiative expanded payment options for tenants to include monthly, quarterly and semi-annual installments.
That initiative was also packed with a range of incentives and packages from participating entities, that was ultimately aimed at supporting rental market stability across Dubai.
Dubai’s leadership want to improving the quality of life for all residents by providing adequate housing solutions that are tailored to suit different segments of the community.
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