In a new scheme that could help scores of Indian nationals, the Dubai Land Department is planning a unique initiative for affordable renting: the ‘Rent Now, Pay Later’ service.
The scheme, carried out in cooperation with a local bank, will allow individuals to rent residential units without paying the total rental value upfront. The participating bank would pay the landlord the full annual rent upfront. The amount can then be paid later to the bank in instalments over a period of up to 12 months, without any interest.
Though the final mechanism of the rental reforms is still in the works, the new scheme will likely make Dubai the first city in the world to implement such measures.
According to local media reports, the initiative reflects the emirate’s direction towards developing innovative and flexible solutions in the real estate sector, supporting tenants, enhancing access to housing and developing new financial instruments through cooperation between the government and banking sectors.
Only after the official announcement will further eligibility requirements, the mechanisms for application, financing and repayment, and the regulations governing the relationship between the tenant, the landlord and the bank be specified.
The Dubai Land Department had last month launched the “Affordable Rental” initiative, which aimed to provide a rental model that expands the options available to tenants, through various payment mechanisms including monthly, quarterly, or semi-annual payments. This is in addition to incentives and promotional packages offered by participating entities.
Under this agreement, the “facilitated rental” model was applied to the vacant or eligible rental units belonging to or managed by the partners, by providing flexible payment options, along with the possibility of offering incentives or rental discounts, or promotional packages for new tenants, in accordance with the policies adopted by the partners and in compliance with the legislation and regulations in force in the Emirate of Dubai.
