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Source: Envato
Published on 10/14/2024

Dubai Renters Turn to Multi-Cheque Payments Amid Rising Costs

Tenants prioritize flexibility despite higher rents in prime locations like Downtown, Business Bay, and Dubai Marina

As Dubai’s rental market surges, more tenants are choosing multi-cheque payment options to manage rising rents, particularly in premium areas like Downtown, Marina, and Business Bay. Industry experts report a sharp increase in tenants opting for 4-plus cheque payments, which accounted for 32% of all contracts in Q3 2024, up from last year when single-cheque payments were more common.

While spreading payments over multiple cheques provides flexibility, it often comes with higher rents. Lewis Allsopp, CEO of Allsopp & Allsopp, explained that despite the increased costs, tenants are willing to pay premium prices to live in high-quality communities, especially as the city’s population continues to grow with new residents relocating.

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Experts like Prathyusha Gurrapu from Cushman and Wakefield Core emphasize that multi-cheque payments help reduce the financial burden for tenants, allowing them to better manage costs. However, landlords may still charge more for these flexible payment plans.

With an influx of high-net-worth individuals driving demand for luxury rentals, prime locations are seeing steady growth. In Q3 2024, rental activity surged with a 36% increase in viewings, reflecting the city’s evolving rental market, where multi-cheque payments are becoming the norm.

Looking ahead, as Dubai’s population of millionaires is expected to double in the next decade, demand for ultra-luxury properties and flexible payment options is likely to remain strong, keeping the rental market competitive.