The new way of buying a house in the UAE has already taken over the market and is gaining popularity among those who wish to move to Dubai at a minimal cost.
Rent with subsequent purchase is an opportunity to get housing ownership without extra nonrecurrent expenditures. This method is chosen by families with an average income, for whom it is important to obtain full ownership of the apartment and the ability to pass on the housing to children by inheritance in the end. The scheme to transfer housing after paying monthly payments is similar to a mortgage, but there is a difference: a lower interest rate that the developer sets. Moreover, a significant difference is such a transfer plan: a new owner gets the opportunity to move into a new home only after payments in the amount of a quarter of the housing cost. Remaining 75 percent is spread over several years in equal installments.
Rizwan Sajan, founder and head of development company Danube Group, reports that this type of acquisition is chosen by low-income families and that more such schemes will appear soon.