This is perfect for those looking to buy property in Dubai without paying the downpayment. Once the lock-in period is complete, you continue paying instalments, usually through a mortgage, until you acquire the property as a whole. As part of this scheme, the rents are structured as payments or instalments towards eventually acquiring the property. There is usually a lock-in period, at the end of which the payments made so far, can be converted into equity (similar to what you would have spent on downpayment) if you decide to purchase the unit. The rent paid by a tenant on any property in Dubai that is a part of the rent to own scheme (RTO) is converted into equity towards buying the home. How do rent to own schemes in Dubai work? But there is a large population that would still prefer to buy a ready property and this is where the rent to own schemes in Dubai and the rest of the UAE comes in handy.Īlthough not widely available across all property types, they are becoming popular and special regulations have been put into place by the government to ensure these are legally sound property investments in Dubai. The alternative then is to obviously look at off-plan projects in the Dubai real estate market for investments.
To save up 25% of the total cost of the property, along with all the other initial costs of buying property in Dubai, puts a significant strain on the pocket.
One of the biggest things that stop potential investors in the Dubai property market is the amount of money that they need to save up for the initial downpayment.