Dubai South has taken the initiative to provide tenants with an enhanced facility to own a property in Dubai. It has become the first and only master-development in the emirate that has launched rent-to-own schemes. With the introduction of such initiatives, there will be no more requirement to go through the hassle-full and stressful procedures of negotiating mortgages with the bank. Moreover, tenants will also be able to manage installments rather conveniently.
This initiative is taken after the selling strategies have been reworked by developers. As per this scheme, the renter will have to follow a payment plan spanning over the duration of 10 years.
This strategy comes with easy exit plans as those who will sign up, they wouldn’t be fully committed to purchasing the selected apartment for rent in Dubai South. There will be no requirement to make a down payment. Moreover, installments are to be made after every quarter. Furthermore, they will enjoy another perk in the form of staying rent-free for two months after they have signed up the contract.
This offer will be able in vast residential clusters in this neighborhood that is ranked among the fastest-growing tenant communities in Dubai.
This isn’t the first time these schemes have gained popularity in Dubai. Most of the offers available for rent-to-own, earlier, were confined to a particular building or a set of buildings, in some cases. However, the fact that the offer has been made by the top development makes this case unique and exclusive.
Aldar, the Abu-Dhabi based master-developer, is another prominent name that has been offering such schemes to renters in the communities it helms. If other developers follow suit, it can become an upcoming trend in the property market across the UAE.
According to the CEO of Dubai South, Mohammed Ali Awadhi, the development is well-aware of the challenges tenants are facing due to prevalent conditions in the UAE real estate market. This is why they have come up with the scheme that provides tenants with a one-of-its-kind opportunity to own a property in Dubai without having to make a major up-front investment.
Renters looking to avail this opportunity need to be mindful that this scheme has a drawback associated with it as well. As the process of renting a living space under this scheme doesn’t involve the bank, interested parties will have to deal with developers only. They may not show as much flexibility as banks do particularly when the renter has become a defaulter. Having said that, the pros clearly outweigh the cons. The biggest pro that a renter can enjoy by the Dubai South’s scheme is that they won’t have to make a down payment.
Dubai South is expected to have more projects completed this year. With Expo 2020 now pushed to 2021, due to COVID-19 pandemic, developers such as Emaar and Mag working in this community have gotten more time to complete their projects before the event starts.
For tenants looking to own a property in Dubai, this scheme launched by Dubai South is no less than a massive opportunity. However, before signing the contract, they need to ensure that it offers them enhanced flexibility of becoming a renter without obligating them to buy the property.