Living in Dubai is like a dream. Its luxurious and beautiful surroundings inspire people to buy a property or rent a home in Dubai. So, if you are looking for off-plan property in Dubai, you must know that Dubai imposes a Municipality housing fee that you’ll need to factor into your budget. 5% of the annual property’s rental value is collected monthly with DEWA bills to support the city’s municipal services.
Here, we will provide brief information about everything related to the Dubai Municipality housing fee, including its calculation and application procedure.
The Dubai housing fee is also known as the municipality fee in Dubai. It is a compulsory charge imposed on residents of Dubai. The fees constitute five percent of the property’s rental value and are collected to cover all the fees enabling municipal asset functioning. It appears and is to be paid along with the monthly utility bills issued by the Dubai Electricity and Water Authority (DEWA). The collection of housing fee supports the Dubai municipality to maintain the standard by investing in essential services, such as:
Certain exemptions apply to the fee, especially for some nationalities having particular accommodations or government employees. Here is the list of exempt residents:
Calculating the Dubai housing fee is easy. It is 5% of the property’s annual rent. To find out your monthly payment, you can use this formula:
Monthly Housing Fee = (Annual Rent × 0.05) / 12
Understand this with the help of an example. Assuming that your annual rent is AED 20,000. Then, the annual housing fee will be AED 1000 (20,000 × 0.05). This means you need to pay a monthly housing fee of AED 83.33 (1000/12).
Generally, the fee is set at 5% of the average rental value of the property as reported and verified by the Real Estate Regulatory Authority (RERA). Homeowners can apply 5% fees on rental properties based on the average rental determination that the RERA rent calculator provides.
The housing fee is a separate item in your monthly DEWA bill. This charge is in addition to the water and electricity charges that residents must settle together. Otherwise, these may lead to service interruption or late fee payment penalties.
Further, the concerns raised to ensure the accuracy of the billing include the following:
Yes, there was an argument about voluntarily reporting changes in rent. An amendment will be made upon notifying Dubai Municipality of the rent change.
To apply for a change, visit the Municipality’s official website, click “Individual Services,” then Dubai Municipality Fee.” Now click on “Apply to Amend Dubai Municipality Housing Fee.” Fill in all the required details and submit your DEWA bill and Ejari.
The housing fee, while an additional expense to one’s pocket, is a bearable consideration of Dubai’s overall cost of living. However, for tenants in high-end properties, the fee can become remarkable on account of high rental values such as:
A residence premium flat renting annually for AED 200,000 would mean a housing fee of AED 10,000 in a year. This would mean AED 833.33/month, supplementing the DEWA bill.
The Dubai Municipality housing fee is an integral part of living in Dubai. It ensures that residents contribute to the city’s maintenance and infrastructure, helping to sustain its status as a global hub for business, tourism, and culture. While it adds to the cost of living, the benefits from clean streets to well-maintained public spaces make it a worthwhile contribution. If you are still confused about the housing fees, contact Dubai Off Plan. We have a team of expert and experienced real estate agents who will help you understand the Dubai municipality housing fee when you are looking to buy Off-plan property in Dubai.
Buying an off-plan property, especially a unit, entails more than just consideration of the price. Some additional expenses come into play, including changes to the Dubai Land Department ( DLD).
In Dubai, legal possession of property can be divided into two general properties.
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