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Dubai Property Market : Challenges in Rent Payment

For Tenants

Dubai Property Market : Challenges in Rent Payment

January 6, 2025

Team Renters

Dubai, often considered as one of the dream destinations for most of the global audience, has been a perfect hub for travelers, business entrepreneurs etc.

The destination not only focuses on gaining the attention of the global audience, but also gives the foreigners a chance to stay and experience the culture of the nation. Right from job to investment opportunities, Dubai has turned out to be a perfect spot, grabbing the eye of an international audience looking forward to migrating.

However, it is to be understood that over the past decade, there has been a drastic spike in migration, which has had a direct influence in the Dubai real estate market, which is known to be one of the costliest global rental markets.

The rent payment proceedings in Dubai has turned out to be a challenging task for tenants as they are charged either half-yearly or annually, that holds a pretty big chunk of money, right!

Studies have found that due to complex lease agreements and limited payment options, paying rent in Dubai has turned out to be one of the biggest nightmares.

This blog highlights the challenges faced while paying rent in Dubai, and if you are planning to migrate, or currently are struggling to clear your rental bills, do give it a read!

Table of Contents

Common Issues Faced While Paying Rent in Dubai

There’s no doubt that Dubai’s rental market is known for its luxurious touch, yet, clearing the house price in Dubai  consumes a highly considerable amount of one’s income. A few of the common challenges faced includes:

1. Spiked Rental Payment

Every year there has been a considerable upsurge in the Dubai housing  market, and currently, it has become nearly impossible for an average person to accommodate one’s family until and unless he/she earns enough. Be it the prime spots or the city center area, clearing the rental bills leaves a very small room for other savings or financial aspects that one can consider.

2. The Demand of Upfront Payment

Another point of struggle for the tenants to pay Dubai rent is that the rules demand upfront payment – no doubt, it becomes a substantial amount in go.  Now, this turns out to be a really huge financial burden for the individuals, especially the ones who are new to the city, or even freshers who haven’t accumulated enough to pay such a hefty amount at once.

3. Very High Security Deposit Payment

When it comes to affording a rental place to stay in Dubai, the individuals are expected to clear the security deposit at the initial stage that turns out to be another financial loophole. As per the rule, the security deposit in Dubai stands at almost 5% of the annual rent for unfurnished properties, while for furnished properties, it stands at 10%, which means that renting a house in Dubai is an expensive deal.

4. Contractual or Lease Restrictions

Many at times the rental or lease agreements in Dubai come with extensive clauses, making it very difficult for the individuals to finalize their decision, and any misunderstanding in the same can give rise to legal issues.

5. Limited Payment Options

As compared to other global hubspots, the payment option in Dubai is very limited as it is not fully digitalized. In most cases, the landlord expects the rent to be paid in advance via cash or direct bank transfer, which becomes an alarming issue for most of the tenants.

6. Currency Fluctuations

Any change in the currency rate between the tenant’s home country and UAE Dirham also results in a challenging face when it comes to clearing the rent due to the upsurge issue.

7. Limited Options During Peak Season

As the rental market stands more competitive during the peak season, it becomes even more difficult for the tenants to find a suitable option within their budget.
By now, you must have got an idea regarding the different issues and challenges faced by  individuals who look forward to finding a perfect accommodation for their families. To combat the same,it is necessary for one to plan up their finances accordingly, and thus, we are here to help you! Renters, UAE’s most trusted rental payment app is here to help you deal with your rental payments at ease. With Renters, you can split your one-shot rental payments into monthly installments, that will help you to manage your finances at ease.  For more information, reach out to us today-we’d be happy to assist you!

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