Dubai Housing Fee: A Comprehensive Guide

What is the housing fee in Dubai?

Let us first dive into the basics - what is the housing fee in Dubai? Used interchangeably with the term “Dubai Municipality Housing Fee”, it is an annual charge paid by expats who are either renting or have bought a property in Dubai. 

This housing fee for owners in Dubai is charged by the Dubai Municipality, for various services such as pollution reduction, food safety, cleaning, waste management, maintaining burial grounds, and the upkeep of waste management services. So, whether you are living in one of Palm Jumeirah’s villas or in an apartment in Downtown Dubai - if you are an expat, you will be mandatorily required to pay the housing fee in Dubai.  

What charges are included in the Dubai housing fee?

It is important to understand the charges that fall under the Dubai Municipality Housing Fee - as it could help you better arrange your finances. 

Generally, the Dubai housing fee for both tenants and homeowners is set at 5% of the property’s annual rent - and must be paid in monthly instalments. Let’s understand better with an example:

Let us assume that someone is renting an apartment in DAMAC Hills, the annual rent for which amounts to AED 70,000. The annual Dubai municipality fee for this property would be AED 3,500, split into 12 monthly instalments to be paid as part of the tenant’s DEWA bill. 

Who is responsible for paying the housing fee?

As mentioned previously, the Dubai housing fee is paid by expats living in the city. 

If a property is being rented out, the tenant will be responsible for paying the municipality fee. However, if the property is vacant or owner-occupied, the owner will pay the fees.  

Housing fee calculations

So, how is the housing fee for owners in Dubai calculated? The current rate for this fee is 5% of the property’s annual rent, but this could be liable to change as per Dubai’s real estate authority. If the property is vacant or owner-occupied, the housing fee calculation will be based on the expected annual rent of an equivalent property.

Methods of paying the housing fee

The housing fee is not separately charged or billed to your account. Instead, it is automatically calculated and added to your DEWA bill.

This means you will simultaneously pay the Dubai housing fee and the other charges in your bill. When viewing your DEWA bill, physically, digitally or within the DEWA app, you will see a breakdown of the bill which outlines the exact fee alongside other fees like water and electricity.

Exemptions from the Dubai housing fee

The only people exempted from paying the Dubai housing fee are UAE nationals. You are liable for paying this fee if you are not a UAE national. 

How to adjust the housing fee in Dubai?

You may wish to adjust your housing fee in Dubai. For example, maybe you are a homeowner, and you feel you are being overcharged based on the expected rent, or you are a tenant, and the rent has been decreased by the landlord.

In such instances, you must update your residential details with the Dubai Municipality, which will consider your situation. Here are the steps you can take while paying the municipality fee:

1. Go to the Dubai Municipality’s official website and click the ‘Services’ tab. 

2. Under ‘Individual Services’, select ‘Dubai Municipality Fees’ and then ‘Apply to Amend Dubai Municipality Residential Fees’. 

3. Fill out the required details and attach the required documents.  

4. After submitting the required information, you will receive an electronic receipt. 

5. Your new details will be updated within the Dubai Municipality within three working days - if you have been charged extra for the housing fee, the amount will be refunded in the form of DEWA credit. 

Housing fee for owners in Dubai

For homeowners, the municipality fee is calculated using the average rental value of their property, as stipulated by RERA (Real Estate Regulatory Authority). To understand the average rent value for their property, homeowners can utilize the RERA rent calculator.

The rent calculator will show the market rate for a comparable property's annual rent. The housing fee will then be added to your DEWA bill at 5% of this amount.

Housing fee for expats in Dubai

As mentioned, the Dubai housing fee applies to all expats residing within the city. Whether you are renting, renting to own, or have bought a property already.  

Conclusion

While the housing fee in Dubai is an added charge to your home ownership or tenancy, it is a small price for residing in a beautiful and modern city as dynamic as Dubai. 

To make your dreams of living in Dubai come true, speak to Engel & Völkers. With over 45 years of unparalleled real estate expertise, Engel & Völkers specializes in helping you find your dream home to buy or rent. 

Our bespoke services include: 

• A free, no-obligation consultation to understand your needs and provide tailored guidance.

• Mortgage advisors who offer in-depth consultations for those looking to buy in Dubai using a mortgage

• A network of over 200 real estate brokers across Dubai to help you find your perfect property.

Contact us today to kickstart your property journey in Dubai!