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Can't Afford Your Flat? Don't Sweat! Some UAE Banks Offer to Pay Rent in Advance

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Staff Writer, TLR

Published on February 22, 2024, 09:06:18

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Rent, hime, buy property, real estate, banks in Dubai

Rental expenses constitute a significant portion of the monthly outlay of most residents in the UAE, often ranking as the primary expenditure in their budgets, whether monthly or annually.

Over the past three years, rental prices in the UAE have steadily increased, driven by a substantial influx of foreign workers and the robust expansion of the economy. According to reports, in the final quarter of 2023, average apartment rents in Abu Dhabi saw a 2.0 per cent year-on-year rise, while villa rents increased by 0.8 per cent per cent. Similar upward trends were observed in Dubai and the Northern Emirates during 2023.

Dubai alone recorded 205,346 new rental contracts and 293,624 renewals, indicating the enduring demand in the rental market. Projections indicate that rental rates will continue to climb in 2024, albeit at a slightly slower pace.

To address the challenges posed by escalating rents, several local banks offer a 'rent in advance’ service to alleviate the financial strain on their customers.

Which are the Banks Offering this Facility?

Dubai Islamic Bank: The largest Shariah-compliant lender in the UAE, offering the 'rent in advance’ facility through Al Islamic Finance.

HSBC Bank: Provides customers with the option to pay rent in advance through a ‘Rent Loan,’ with an annual percentage rate starting from 7.24%. This rate is available to Premier customers employed by an HSBC-listed company, who transfer their salaries to HSBC.

Ajman Bank: Offers rent payment through its Shariah-compliant personal finance scheme, ‘Service Ijarah,’ allowing customers to use the service for a predetermined period in exchange for agreed-upon rent.

First Abu Dhabi Bank:Allows tenants to manage rent payments with the bank’s credit card, offering interest-free easy payment options for rent and property fees.

Al Hilal Bank: Assists tenants facing financial difficulties with rent payment through the ‘Rent Finance’ scheme, offering payment tenure of up to one year with competitive rates. Requirements include a minimum salary of Dh5,000, a valid passport and visa, and a six-month bank statement, among others.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

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