The Dubai Land Department (DLD) is developing the initiative in partnership with a local bank to provide tenants with greater payment flexibility and make housing more accessible across the emirate.
Under the proposed mechanism, a tenant selects a residential property and the participating bank pays the landlord the full annual rent upfront. The tenant then repays the amount to the bank in flexible instalments over a period of up to 12 months at zero interest, according to sources familiar with the initiative who spoke to Emarat Al Youm.
The final mechanism is still being developed, with full eligibility requirements and details covering applications, financing, repayments and the relationship between tenants, landlords and the bank expected to be announced when the service is officially launched.
When introduced in its proposed final form, the initiative could make Dubai the first city globally to implement such a mechanism as an integrated part of its rental market.
The move builds on DLD’s Flexi Rent initiative, launched on June 23, 2026, which expanded payment options for tenants to include monthly, quarterly and semi-annual instalments. The earlier initiative also introduced incentives and packages from participating entities, aimed at supporting rental market stability, improving quality of life and providing housing solutions tailored to different segments of the community.
The zero-interest payment plan arrives as Dubai’s residential market continues to show robust activity, with the emirate completing 24,800 homes during the first half of 2026 while rents declined 2.5 percent amid increased supply.
By removing interest charges and enabling instalments, the new service is designed to ease the financial burden on tenants who typically face large upfront payments for annual rent, while ensuring landlords receive their full rental income without delay. The initiative reflects Dubai’s continued efforts to enhance housing accessibility and market transparency through innovative payment solutions.
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