Dubai Tenants Choose Multiple-Cheque Payments as Rents Rise

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Dubai's rental market is experiencing a significant shift as tenants opt for multiple-cheque rent payments despite higher costs. The trend, particularly in premium areas like Downtown Dubai, Marina, and Business Bay, allows tenants to manage rising rental prices by spreading payments across four or more cheques. According to experts, there has been a 33-36% rise in tenants choosing six or eight cheque payments compared to last year, with 32% of contracts in Q3 2024 using four-plus cheque payments.

The demand for flexible payment options is driven by new residents and high-net-worth individuals relocating to Dubai. This has fueled a surge in rental demand, especially for high-end properties, pushing rents to all-time highs. While this provides tenants flexibility and reduces the burden of large upfront payments, landlords often increase rates for those opting for multiple payments.

Institutional landlords, like Wasl, are more flexible, offering monthly payments and accepting various payment methods, including electronic transfers. However, many landlords still prefer fewer cheques and may raise rents for tenants requesting more payment installments.

With rising population and demand, particularly from high-net-worth individuals, luxury rentals remain in high demand. In Q3 2024, listings and viewings for rentals increased significantly, with a notable rise in ultra-luxury rentals due to limited property availability. Experts predict the premium market will continue to grow, driven by the expected doubling of millionaires in the coming decade.

Source:https://www.khaleejtimes.com/business/realty/dubai-tenants-opt-for-multiple-payments-amid-rising-rents-but-face-increased-rates