Dubai mulls rent-to-own, multiple owners scheme in realty
Initiatives to bring in more liquidity into market
Dubai is working on a host of new initiatives and regulations such as a rent-to-own system, partial title deeds that will allow multiple ownerships in a property, the launch of collective real estate investment funds and investment portfolio applications in order to give fillip to the local real estate market.
These initiatives will bring in more liquidity into the real estate market which has been persistently going down due to falling demand over the last few years.
Rent-to-own system, already in place in developed markets, will significantly enhance the emirate’s position among top realty markets. Interestingly, some of the developers are already offering this facility to tenants in the UAE.
Abu Dhabi-based Aldar Properties was the latest to foray into this as it announced launch of new rent to own scheme for a limited number of homes in its West Yas community last week.
Marwan bin Ghalita, CEO of the Real Estate Regulatory Agency (Rera), said these initiatives will help Dubai emerge from the traditional patterns of property buying, selling, and registration.
“These processes require us to embrace technology and change, both of which paved the path to launching real estate products with the participation of developers to attract new investors. Previously, the real estate market targeted a certain class of investors: the wealthy. Today, however, through these four products, we seek to cover a larger segment of investors, both inside and outside the UAE, and allow them to own properties in Dubai and benefit from high returns on investments,” Bin Ghalita said.
Majid Saqr Al Marri, CEO of the registration and real estate services sector at the DLD, said partial title deeds system means equal ownership of properties between two to four investors, and will initially be available for hotel facilities.
Talal Al Dhiyebi, chief executive officer of Aldar, said there is real demand for a rent-to-own scheme at communities.
All rights reserved to the initial publisher for Khaleej Times.