Dubai: Rent-to-own market gaining popularity again amidst surging rentals

Dubai: Rent-to-own market gaining popularity again amidst surging rentals

Published: Sun 26 May 2024, 2:25 PM Last updated: Sun 26 May 2024, 4:00 PM

Surging rentals have breathed new life into 'rent-to-own' properties, and this concept is once again gaining popularity.

As rents continue to rise in most areas, some communities are witnessing rent stabilisation following a three-year rally, driven by high demand from the rising population, which reached 3.696 million on May 25.

Rent-to-own programmes are quite popular and beneficial in those areas of Dubai where prices are quite high as they allow people to own their dream homes with relative ease and also save on rentals.

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The Real Estate Regulatory Authority (Rera) adjusted its rental calculator in early March, prompting many tenants to explore strategies for managing housing costs and achieving long-term financial stability. One such approach is to pursue homeownership through rent-to-own programmes. This not only allows renters to build equity but also potentially stabilisess their monthly expenses, a factor that can instill confidence in landlords about the financial security of their investment.

Data from property management firms in Dubai suggests a rise in rent-to-own arrangements in 2024, particularly in upscale neighbourhoods like Downtown and Dubai Marina, alongside mid-range