Are rent-to-own units a good option for property buyers in Dubai?

  • Date: 26-May-2023
  • Source: Zawya
  • Sector:Real Estate
  • Country:UAE
  • Who else needs to know?

Are rent-to-own units a good option for property buyers in Dubai?

Rent to own offerings are becoming popular in Dubai, but not many individuals understand what they include. In simple terms, rent-to-own properties involve the buyer purchasing the property from a developer by paying on a monthly, quarterly, or annual basis, as specified in the agreement. Nowadays, very few developers have this type of financial purchasing method, such as an example in Dubai South with a post-handover payment plan that can go for 10 years and in Villas such as California Village with a ready to move in and post-handover payment plan that can go for five years and few other options.

When there is a high demand in the real estate market, rent to own options are rarely seen; however, when there is a high supply in the market, developers will introduce rent to own as a second option to sell in order to move the stock, which is more common in projects located far from the city, such as Dubai Land.

The rent-to-own trend in real estate can be influenced by various factors that may lead to its rise or fall. Some possible reasons for the rise/fall of the rent-to-own trend include:

Economic conditions such as job growth, unemployment rates, and overall