Rent-to-buy schemes are becoming popular in the United Arab Emirates (UAE) offering the tenants an opportunity to convert rent they have paid into equity towards purchase of their unit. The facility is likely to give a big push to the UAE property sector according to market experts.

Rent-to-buy scheme is embraced by a number of investors with open hands and realty firms in the nation have chalked out plans for wooing the customers. Aldar Properties, Abu Dhabi's largest developer has already introduced a rent-to-own programme for units at its Raha Beach development.

The scheme enables tenants paying a fixed amount for two years and thereafter it is converted in to equity. Moreover, the tenant is under no obligation to purchase and free to transfer the equity to another tenant subjecting to certain conditions.

Priyesh Patel, a real estate agent at Aston Pearl Real Estate in Dubai said, "This idea has proved popular already and it can be even more successful if developers are clear and transparent with the terms and conditions."

Matthew Green, head of research and consultancy at real estate firm CB Richard Ellis in Dubai also hailed the scheme and advised tenants to make sure the rental rates and end sales prices offered by developers are realistic.