Dubai is preparing to launch a “Rent Now, Pay Later” service in September, allowing tenants to spread their annual rent payments over up to 12 months without interest, according to a report by Arabic daily Emarat Al Youm.
The initiative is being developed by the Dubai Land Department (DLD) in partnership with a local bank and is aimed at easing the financial burden of large upfront rental payments while giving tenants greater flexibility.
Under the proposed arrangement, tenants would choose a residential property while the participating bank pays the landlord the full annual rent upfront. The tenant would then repay the bank through flexible instalments over a period of up to 12 months at zero interest.
Details of new rental scheme
The final mechanism is still being developed. Details on eligibility, applications, financing, repayments and the arrangements between tenants, landlords and the participating bank are expected to be announced when the service is formally launched.
If implemented in its proposed form, the scheme could make Dubai the first city globally to introduce such a mechanism as an integrated part of its rental market.
The initiative follows DLD’s “Flexi Rent” programme, launched on June 23 to provide tenants with more flexible rental payment options. The programme allows participating property companies to offer monthly, quarterly and semi-annual instalment plans.
DLD said the initiative was designed to improve rental market accessibility, enhance the tenant experience and support a more sustainable real estate sector.
The proposed bank-backed service would take this approach further by allowing tenants to avoid paying large annual rental amounts upfront, while landlords would receive the full rent at the start of the tenancy.
