Dubai’s Rental Market Evolves: Online Payments Preferred Over Cheques Amid Rising Rents
Dubai Sees a Shift in Rental Transactions with Tenants and Landlords Embracing Digital Payment Methods
Dubai, UAE – As rental prices continue to climb, a significant shift in payment methods is taking place, with tenants increasingly favouring online bank transfers over traditional cheque payments. This change reflects a growing trust and a move towards more flexible and secure transaction options in the real estate market.
In response to rising rents and the evolving needs of Dubai’s diverse resident base, the real estate sector is witnessing a notable transition from cheque to online bank payments. According to industry experts, this trend is driven by the mutual trust established between tenants and landlords over time and the integration of digital solutions in rental processes.
Jacob Bramsley, Leasing Manager at Better Homes, highlights the practicality of bank transfers, “Landlords are increasingly seeking higher prices. Tenants commonly request to pay via bank transfer rather than cheques, which appears logical once a relationship is established and there’s trust without needing physical cheques. Parties sometimes negotiate the number of payments or notice period to provide tenants more flexibility if they plan to buy or relocate.”
The transition to digital payments was further supported by the full integration of Dubai’s real estate rental online registration system, Ejari, with the Central Bank of the UAE’s direct debit system (DDS) in early 2023. This integration has eliminated the need for tenants to submit post-dated rental cheques, simplifying the payment process.
Karun Luthra, Vice President for Global Operations at Foremen Fiefdom, elaborates on additional enhancements, “Landlords are adopting online rent payment systems, maintenance request portals, and communication platforms to improve tenant convenience, reflecting a broader trend of digitalisation in property management.”
The shift to online payments also accommodates new Dubai residents who may still need local banking facilities. Alina Adamco, Head of Sales at Metropolitan Homes, observes, “Landlords without UAE bank accounts are now open to receiving rent via international transfers, accommodating situations where tenants may lack a chequebook by accepting direct bank transfers or even third-party cheques.”
The move towards digital payment methods is part of a broader trend of enhancing tenant convenience and security, aligning with Dubai’s reputation as a technologically advanced and user-friendly real estate market.
