Following a three-year surge spurred by strong demand from the growing population—which hit 3.696 million on May 25—some communities are seeing rent stabilization as most locations continue to see increases in rent. Because they make it very easy for people to purchase their ideal homes and save money on rentals, rent-to-own programs are very popular and advantageous in Dubai's more expensive neighborhoods.
Once the Real Estate Regulatory Authority (Rera) modified its rental calculator in early March, a lot of tenants started looking at ways to control their housing expenses and secure their financial future. Rent-to-own programs are one way to reach the goal of homeownership.
This gives tenants the opportunity to accumulate equity while also possibly stabilizing their monthly expenses—a feature that might reassure landlords about the safety of their investment.
According to data from Dubai-based property management companies, there will be more rent-to-own agreements in 2024, especially in the more affluent neighborhoods of Downtown and Dubai Marina, as well as in the mid-range neighborhoods of Jumeirah Lake Towers (JLT) and Jumeirah Village Circle (JVC).
Both landowners and tenants view the rise of these trends as a balancing act aimed at establishing a middle ground that benefits both parties in a satisfactory way.
