Dubai to launch ‘Rent Now, Pay Later’ service with zero-interest instalments
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…
Dubai plans to introduce a “Rent Now, Pay Later” service in September, allowing tenants to split their annual rent payments over a 12-month period without accruing interest, according to Emarat Al Youm. Developed by the Dubai Land Department (DLD) and a local bank, the initiative aims to offer tenants greater flexibility in managing their rent payments and make housing more accessible.
The process involves a tenant choosing a residential property, with the participating bank paying the landlord the full annual rent upfront. The tenant would then repay the amount to the bank in zero-interest instalments over a period of up to a year. The specifics of eligibility, applications, financing, repayment, and the relationship between tenants, landlords, and the bank are yet to be finalized and will be disclosed upon the service's official launch.
If successfully implemented, this initiative could make Dubai the first city worldwide to incorporate such a mechanism into its rental market. This move complements DLD’s Flexi Rent initiative, launched in June, which broadened payment options for tenants to monthly, quarterly, and semi-annual instalments. The Flexi Rent initiative also introduced incentives and packages from participating entities to support rental market stability, enhance the quality of life, and provide tailored housing solutions for different community segments.
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