Dubai is set to launch the Flexi Rent initiative, a strategic move designed to narrow the divide between short-term holiday rentals and traditional annual tenancy contracts. By allowing tenants to settle their rent through monthly, quarterly, or annual payment plans, the scheme aims to alleviate the financial strain of large, upfront payments that have long served as a barrier for many residents.
Real estate experts suggest that the primary obstacle for many tenants has not been the overall cost of housing, but rather the requirement for large, lump-sum cheques. Farooq Syed, CEO of Springfield Properties, noted that the initiative creates a necessary middle ground. He explained that many individuals have historically opted for short-term rentals not out of a desire for a transient lifestyle, but because they could not meet the traditional one- or two-cheque annual payment structure. These tenants were often willing to pay a premium for the convenience of monthly payments, a trend the new scheme seeks to correct.
The program, which is expected to roll out soon following its announcement earlier this year, will be integrated into the formal Ejari tenancy system. According to Rohit Bachani, co-founder of Merlin Real Estate, this transition offers tenants the same monthly payment rhythm they found in the holiday-home market, but with the added security of Smart Rental Index protection and formal recourse through the Real Estate Regulatory Authority (Rera). Bachani described the narrowing of the gap between these two market segments as the most underestimated consequence of the initiative.
Market data highlights the current state of the sector, with the emirate recording 115,992 rental transactions valued at Dh10.18 billion during the second quarter. Recent figures show a 19 per cent decline in leasing volume quarter-on-quarter, while the total rental value dropped by 18 per cent. New contracts fell by 15 per cent to 42,100, and renewals decreased by 20 per cent to 73,892. Despite these shifts, renewals accounted for approximately 64 per cent of all activity, suggesting that most transactions involved existing residents remaining in their homes.
Median rental pricing also saw a 7 per cent decline, reaching Dh93 per square foot. Industry observers anticipate that the annual rental market will successfully reclaim demand that had previously drifted toward short-term stays over the last three years, particularly among young families and mid-income professionals. While short-term rentals will continue to cater to tourists, corporate assignees, and those with genuinely transient needs, the Flexi Rent scheme provides a more accessible alternative for those who were previously priced out of annual contracts by rigid payment requirements. The report also notes that says trying to ‘prevent’ them, iran President admits country facing ‘many problems’. The report also notes that israel conducts fresh strike in Syria after US criticism. The report also notes that uS, Oman discuss regional stability as efforts to reopen Strait of Hormuz continue. The report also notes that cold drinks to workers in summer heat, two UAE women honoured for bringing food. The report also notes that uS, Iran remain at odds; Tehran reacts to Trump announcement of economic sanctions. The report also notes that stay up to date with the latest news. The report also notes that but then having the payment flexibility,” Syed said, adding that short-term rentals would continue to serve international tourists and those unwilling to commit for a full year, those people will now prefer committing to the annual contract. The report also notes that dubai’s rental market is softening amid growing supply.
Source: Khaleej Times
