Rent-to-own schemes get popular in Dubai

Rent-to-own schemes are emerging as a viable alternative for aspiring property owners who might not otherwise have the down payment needed to buy a home in Dubai. The rent paid on a home under such a scheme will be converted as equity towards buying the home.

It's a win-win for both parties involved since developers get to sell their current ready-to-move-in stock while end-users can afford to buy where they couldn't before due to lack of down payment funds.

"Today, around 70 per cent of expats rent, many due to lack of a down payment to purchase a property or uncertainty on how long they plan on staying in Dubai. To purchase a mortgaged property that is less than Dh5 million, for instance, one would need to have 25 per cent of the property value plus approximately eight per cent in fees," says Lynnette Abad, director of data and research at Propertyfinder Group.