Dubai to launch ‘Rent Now, Pay Later’ service with zero-interest instalments
Bank to pay landlords annual rent upfront as tenants repay over up to 12 months
Dubai is set to launch a “Rent Now, Pay Later” service in September that will allow tenants to spread annual rent payments over up to 12 months without interest, according to a report by Emarat Al Youm.
The initiative, being developed by the Dubai Land Department (DLD) in partnership with a local bank, is aimed at providing tenants with greater payment flexibility and making housing more accessible.
Under the proposed mechanism, a tenant would select a residential property and the participating bank would pay the landlord the full annual rent upfront. The tenant would then repay the amount to the bank in flexible instalments over a period of up to 12 months at zero interest, sources familiar with the initiative told the newspaper.
The final mechanism is still being developed, with full eligibility requirements and details covering applications, financing, repayments and the relationship between tenants, landlords and the bank expected to be announced when the service is officially launched.
When introduced in its proposed final form, the initiative could make Dubai the first city globally to implement such a mechanism as an integrated part of its rental market.
The move builds on DLD’s ''Flexi Rent'' initiative, launched on June 23, which expanded payment options for tenants to include monthly, quarterly and semi-annual instalments.
The earlier initiative also introduced incentives and packages from participating entities, aimed at supporting rental market stability, improving quality of life and providing housing solutions tailored to different segments of the community.
