Dubai has one of world’s most competitive real estate markets. Media reports say rents have increased dramatically in the emirate: In May, the average monthly apartment rent in the city was more than $7,500.
In such a happening market, real estate agents in Dubai are believed to make up to $200,000 in monthly commissions.
Real estate is an important part of the UAE’s economy, responsible for around 5 percent of the gross domestic product.
Like in other affluent cities of the world, landlords in Dubai seek a secure mode of rental payment. Until more than a week ago, this security was achieved through post-dated cheque system, in which the tenant paid the landlord a certain number of post-dated cheques.
Now, an agreement signed between Dubai Land Department and Emirates NBD seeks to digitize rental cheque payments through the UAE Central Bank’s Direct Debit System, eliminating the need to manually manage postdated cheques submitted to landlords and property management companies.
TRENDS explains how the new system will provide a hassle-free rental payment mode in the emirate: