Bank to pay landlords upfront as tenants repay rent in zero-interest instalments over 12 months.
Dubai is set to introduce a “Rent Now, Pay Later” service in September, allowing tenants to spread annual rental payments over up to 12 months with zero interest, according to a report by Emarat Al Youm.
The initiative is being developed by the Dubai Land Department (DLD) in partnership with a local bank, with the aim of giving tenants greater flexibility in managing rent payments and improving housing affordability.
Under the proposed arrangement, tenants would select a residential property, after which the participating bank would pay the landlord the full annual rent upfront. Tenants would then repay the bank through flexible instalments over a period of up to 12 months, without interest, sources familiar with the initiative told the newspaper.
The final structure of the service is still being worked out. Details on eligibility, applications, financing, repayment terms and the arrangements between tenants, landlords and the participating bank are expected to be announced when the service officially launches.
If introduced in its proposed final form, the initiative could make Dubai the first city in the world to integrate such a rent-payment mechanism into its rental market.
The planned service builds on the Dubai Land Department’s “Flexi Rent” initiative, launched on June 23, which expanded rental payment options to include monthly, quarterly and semi-annual instalments.
The earlier initiative also offered incentives and packages from participating entities, with the aim of supporting rental market stability, enhancing quality of life and providing housing solutions suited to the needs of different segments of the community.
