Local banks are offering a 'rent in advance facility to ease the burden on their customers with rising rent

One of the largest monthly expenses for inhabitants of the United Arab Emirates is rent. It is the largest portion of some residents' monthly or annual budget expenses. Over the past three years, the UAE has seen a steady increase in rent because of the large number of foreign workers that entered the nation as the economy grew quickly. 

According to real estate firm CBRE, Abu Dhabi's average flat rentals jumped by 2.0% year over year in the fourth quarter of 2023, while villa rents increased by 0.8%. In 2023, rents in Dubai and the Northern Emirates likewise continued to rise. The rental market study showed 293,624 renewals and 205,346 new contracts in Dubai alone. Forecasts indicate that rents will continue to rise in 2024, albeit a little more slowly. 

Many local banks are helping their clients by providing a "rent in advance" option as a way to alleviate the stress of growing rental costs.

Ajman Bank

Through its personal financial programme, "Service Ijarah," the bank provides rent. In accordance with this Shariah-compliant plan, the client will pay a predefined agreed rent to the Islamic bank, which will acquire the desired service and grant the customer the right to utilise it and its advantages for a specified amount of time.

Dubai Islamic Bank

Residents leasing a house via Al Islamic Finance or relocating to a new flat are eligible for this programme, which is offered by the largest Shariah-compliant lender in the United Arab Emirates.

HSBC bank

Customers can also take advantage of a "Rent Loan" with an annual percentage rate as low as 7.24 percent, which allows them to pay their rent in advance. Premier clients who work for an HSBC-listed firm and transfer their salaries to HSBC are eligible for this rate. Based on the decreasing rate, which remains constant over the course of the loan, the rate includes a one percent arrangement charge that is spread out over the maximum 48-month loan term. Interest is computed daily and is based on a 365-day calendar year. Every month, when the loan balance decreases, HSBC applies the interest rate.

First Abu Dhabi Bank

Tenants can use the bank's credit card to manage their rent payments. The bank is providing convenient, interest-free payments for property taxes and rent.

Al Hilal Bank

Tenants can utilise the "Rent Finance" programme to assist them pay their rent during lean financial times. The lenders provide reasonable rates with a maximum one-year payment term. A valid passport and visa, a six-month bank statement, a minimum income of Dh5,000, and any further documentation needed are also prerequisites.