Amlak Finance eyes completed properties with new product

Dubai: Amlak Finance PJSC, a publicly-listed Islamic mortgage lender, has launched Amlak Buy to Rent, a new home finance product for ready-to-use properties.

The product is designed both for residents and non-resident customers who want to invest in the lucrative real estate market.

A salient feature of the new finance scheme is that 50 per cent of the customer's creditworthiness will be assessed on the basis of his or her salary or business income and the rest will be on the basis of the rent that accrues from the property being financed.

"The finance option will cover up to 75 per cent of the total value of the property and will have to be repaid over a period of 25 years for UAE residents, 20 years for resident expatriates, and 15 years for non-residents at competitive profit rates," the company said in a statement.

Mohammad Al Hashimi, managing director and CEO of Amlak Finance, said, "Amlak Buy to Rent will offer customers the advantage of owning property in Dubai and also investing and repaying the money through the rent they get from the property.

"For those who are tired of being tenants, this is their opportunity to become landlords. The scheme could also be availed of by customers who want to go in for bigger houses than they presently have."

An optional advantage of Amlak Buy to Rent product is a property management service whereby customers will be charged a minimal fee for the hassles involving tenancy, starting from looking for the right tenant to property maintenance and finance repayment. Amlak Finance has signed an agreement with Asteco to provide property management services. Though similar products have been offered by other banks in the UAE in different forms, this is the first time it has been branded clearly as Buy to Rent, claim officials.

Amlak Finance PJSC was set up in November 2000 as a wholly-owned subsidiary Emaar Properties PJSC. The company was listed on the Dubai Financial Market following an IPO in 2004. Emaar currently owns 45 per cent share in Amlak Finance.