Rent-to-Own Properties in Dubai by Emaar

Rent-to-own is a process by which you sign a rent agreement for some time with the ability without having strong credit scores, lack of down payment, or curtailing the process of qualifying for a mortgage. Emaar Properties is a vanguard in the real estate sector in Dubai, UAE, and the region. Throughout its active years in the market, the company has succeeded in establishing a footprint in real estate, retail and shopping malls, hospitality, and leisure. The company has also recognized the rising need in the market for rent-to-own properties; thus the company devised a lease-to-own scheme for certain residential projects.to buy it before the lease expires. Such a concept has gained popularity in recent years, especially among individuals and families who otherwise do not have the means to own a house outright. Among the reasons behind this popularity, we can list the ability to purchase a home

2 - 4 Bedroom Apartments
5 & 6 Bedroom Villas
Limited Units
Step 1

Select a unit for viewing

Step 2

Pay annual rent, fixed for 3 years

Step 3

Move now into a ready home

Step 4

Use 100% of your rental payments towards home ownership

Understanding Rent-to-Own

Rent-to-own is a concept that bridges the gap between renting and buying a property. Tenants can rent a property and choose to purchase it at an agreed-upon price after a certain period — usually within one to five years. In this approach, tenants can experience living in the property before purchasing it, making it an attractive choice for aspiring homeowners.

The Main Advantage of Rent-to-Own

Rent-to-own properties in Dubai are a flexible approach for potential buyers to live in their desired property and determine whether it suits their lifestyle and preferences before purchasing it. This acts as a trial period that helps potential buyers make informed decisions that match their long-term goals.

Additionally, opting for a rent-to-own scheme will allow you time to save for a down payment, especially if a portion of your rent is directed towards the property cost. These types of agreements allow you to strengthen your finances, decrease your debt, and improve your credit score.

Buying the house you’re already renting will spare you the cost and effort of looking for supplies, furniture, movers, and more; once the rent contract ends.

Why Choose Rent-to-Own Properties?

There are many reasons to choose a rent-to-own property. These include:

  • Difficulty in qualifying for a mortgage and needing time to assess your financial situation or employment stability.
  • Living in a house before making the decision to buy it, which gives a realistic idea of the neighborhood and amenities.
  • Avoiding the cost and hassle of having to move.
  • Having time to save for a down payment.

Emaar Rent-to-Own Properties in Dubai

One of Dubai’s top real estate developers, Emaar Properties, offers a popular Rent-to-own program. This program encompasses many developments by Emaar, spread throughout Dubai.

Emaar Rent to Own Monthly Program -

This program has gained popularity among the increasing number of expatriates who move to Dubai and look for a practical solution to owning a home of their own in the Emirates. Join countless aspiring homeowners who have embraced Emaar's renowned program, seamlessly transitioning from tenant to homeowner.

Rent-to-Own Apartments in Dubai

Many Dubai apartments for sale offer a Rent-to-own approach. You can choose from apartments with a vibrant community or a calming waterfront — many options suit various preferences and budgets, ensuring everyone finds their perfect match.

You can find apartments with rent-to-own options in many communities such as:

Rent-to-Own Villas in Dubai

Similarly to apartments, villas for sale in Dubai can also be leased out based on a rent-to-own scheme. Rent-to-own villas are excellent if you're looking for more luxurious and spacious living areas. Villas offer greater privacy, comfort, and an upscale lifestyle. Rent-to-own villas provide an exceptional opportunity for tenants to enjoy the epitome of Dubai living. Many villa communities in Dubai feature villas available for rent-to-own.

These communities include:

Process for Applying for Rent-to-Own Schemes for Properties

Applying for a rent-to-buy in Dubai typically involves these steps:

  • First, conduct thorough research to identify suitable Rent-to-own properties and reputable developers. Take all the time you need to find the rent-to-own property that is best for you.
  • Next, prepare the necessary documentation, including a copy of the sale and purchase contract, a copy of the Emirates ID, a copy of the passport (for non-residents), income proof, residency status, and credit history. For commercial Rent-to-own properties, you will need a copy of the commercial license, a copy of the license owner’s Emirates ID or passport, and power of attorney.
  • Finally, submit your application and be ready for a credit check and property inspection.

How to Register for a Rent to own Property

Registering for a rent-to-own property is a straightforward process. Go to The Dubai Land Department (DLD) website, then go to the request for registration of a Rent to own property (initial) Page. Access the service online and sign in with your UAE PASS. Sign up if you don’t have an existing account.

Then, there are 3 key pieces of steps to complete:

  • Step 1: Enter your personal information and financial details and upload the necessary documents.
  • Step 2: Select a payment method.
  • Step 3: Submit your application online.

Contact the property developer or your real estate agent handling the scheme if you need guidance through the registration process. Once your application is approved, you can proceed to signing the Rent to own agreement.

How Do Rent to Own Properties in Dubai Benefit the Seller?

We already know how Rent-to-own properties benefit the buyer. But there are benefits associated with the seller too:

  • Guaranteed Income: Sellers receive consistent rental income throughout the lease term, providing a reliable cash flow meanwhile securing a potential buyer
  • Secured Sale: A Rent-to-own agreement ensures a committed buyer at the end of the lease, reducing the uncertainties of traditional sales.
  • Expanded Buyer Pool: By offering rent-to-own options, sellers can attract potential buyers who might not qualify for a traditional mortgage, broadening their customer base.

Frequently Asked Questions

1. Are buyers treated as tenants or owners when it comes to Rent to own properties in Dubai?

Buyers in Dubai Rent to own properties are considered tenants during the rental period. This means they have tenant rights and responsibilities, such as paying rent and adhering to property rules. However, unlike traditional tenancy, a portion of the rent contributes towards the property’s purchase price, giving them the option to become owners at the end of the rental term.

2. What Is the Difference Between Rent to Own and Home Mortgage?

Rent to own and home mortgage are two different ways to finance property ownership.

  • Rent to own: You rent a property for a specific period, with a portion of your rent contributing to the purchase price. At the end of the rental term, you have the option to buy the property.
  • Home mortgage: You borrow a lump sum from a lender to purchase a property. You then repay the loan, with interest, over a fixed period, typically 15-30 years. You own the property from the moment you complete the purchase.

So the main difference lies in the upfront costs, ownership timeline, and flexibility. Rent-to-buy in Dubai often requires a lower upfront payment, but you don`t own the property until the end of the rental term. With a mortgage, you own the property immediately but typically require a larger down payment.

3. What Are the Advantages of Rent to Own Schemes in Dubai?

Advantages of Rent to own schemes in Dubai are but not limited to:

  • Lower upfront costs: Compared to a traditional mortgage, you often need less money upfront to start.
  • Opportunity to test the property: Living in the property before buying allows you to assess its suitability.
  • Potential for price appreciation: If property values increase, you could benefit from the appreciation when you buy.
  • Building equity: A portion of your rent contributes to the purchase price, building equity over time.
  • Flexible payment plans: Many Rent to own schemes offer various payment options to suit different budgets.

4. What Are the Points You Should Consider Before Renting to Own?

Before entering into a Rent to own agreement, consider the following tips:

  • Financial readiness: Calculate the total amount you`ll pay, including rent and the eventual purchase price. Ensure you can afford the monthly rent and the eventual purchase price.
  • Market conditions: Understand the property market trends to assess if buying at the end of the rental term is financially viable.
  • Contract terms: Carefully review the contract, including the purchase price, rental amount, and any penalties for early termination.
  • Alternative options: Explore other homeownership options like traditional mortgages or shared ownership schemes before you dive into rent-to-own schemes.

5. What Are the Payment Plans for Rent to Own Schemes?

Payment plans for rent-to-own schemes differ from one case to another because Rent-to-own schemes in Dubai are defined based on the agreement between the developer and buyer.

While the Dubai Land Department (DLD) has established guidelines, the specific terms of each scheme are negotiated between the buyer and seller.

Generally, you can expect to encounter elements such as:

  • A non-refundable fee: An upfront payment that secures the right to purchase the property at the end of the rental term.
  • Monthly Rent: This is often higher than market rent, with a portion contributing to the purchase price.
  • Purchase Price: The agreed-upon price at which the property can be bought at the end of the rental term.
  • Increasing Rent: Some schemes involve gradually increasing rent, with the difference applied to the purchase price.

6. What Should be Included in a Rent to Own Contract?

  • Names and contact information of the buyer and seller
  • Detailed description of the property(location, size, and any specific features)
  • Rental amount and lease terms(Length of the rental period)
  • Rent Structure: A detailed breakdown of the rental payments, including any portion allocated towards the purchase price
  • Purchase price and terms
  • Clarification of property ownership during the lease term and upon purchase
  • Conditions for purchasing the property
  • Option fee to secure the purchase option
  • Consequences for missed or late rental payments.
  • Conditions for early termination and potential penalties
  • Refund Policy: Terms for refunding any portion of the paid amount in case of contract termination.
  • Contingency Plans: Provisions for unforeseen circumstances such as job loss, financial hardship, or mortgage rejection.
  • Maintenance Responsibilities: Clearly defined responsibilities for property upkeep during the lease term
  • Dispute resolution process

7. How flexible are the payment plans for Emaar’s rent-to-own homes?

Emaar’s rent-to-own payment plans have been carefully designed to allow home buyers to take ownership of their dream home with ease and convenience. Discuss with your real estate agent the payment plan Emaar offers to plan accordingly.

8. Can expatriates invest in Emaar’s rent-to-own properties?

Emaar’s rent-to-own properties are available to both expatriates and nationals. Residents of Dubai can get in touch with their real estate agency to guide them in the process of renting a property to own it.

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