Dubai may reintroduce rent to own property scheme

Published:  2 Sep at 6 PM
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Industry experts in Dubai are pushing for a re-run of the popular rent-to-own real estate scheme which allows expats to put rental charges towards purchasing their chosen home.

Expatriate real estate purchases have declined recently, due to stringent regulations including a mortgage cap introduced by the government as a way to cool down the emirate’s housing bubble. Reintroducing the rent-to-own plan with its similarities to an option contract is expected to return confidence to expat investors due to its try-before-you-buy nature.

Basically, the scheme allows expatriates to end their rental contracts and commit their rents towards purchasing their home. It also allows renters to simply move to another home without penalty should they decide that their present location isn’t suited to their needs.

The rent-to-buy scheme’s flexibility is also expected to benefit both current expat home owners and local developers as it opens up the possibility of increased interest in purchasing homes included in the scheme. Developers should also be able to charge higher prices due to the exit strategy options offered.

Luxury home development groups in Dubai are pushing for the scheme to be swiftly reintroduced, and are already offering the services of interior designers and lifestyle consultants as an added incentive to buyers. Given the sharp rise in rental and real estate prices over 2013 and into 2014, most developers believe that the emirate is poised to benefit from a re-run of the formerly popular plan.
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