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Many people, locals and foreigners alike, dream of buying a house in Dubai. Because of the city’s solid and unchanging economic environment with diverse nationalities, unmatched lifestyle, and exclusive developments, rapidly, thousands of expats are now migrating to become investors or homeowners in Dubai.
The real estate market in Dubai is, for the most part, relatively straightforward; yet, in some respects, for foreigners, there are so many factors that are not easy to recognize at first-a small example is the Dubai housing fee.
Having knowledge on factors such as this will give one a far better view of the city’s real estate market and a sound preparation for the investment of a lifetime. This article will answer most of the questions about the Dubai housing fee such as its charges, mode of payment, among others.
What is the Housing Fee in Dubai?
In addition to Dubai Housing Fee, also known as Dubai Municipality Housing Fee, it is an annual fee paid by expats who rent or own some properties in Dubai. Such a housing fee for owners in Dubai would be charged by the Dubai Municipality for various services like pollution reduction, food safety, cleaning, waste management, maintenance of burial grounds, and public spaces.
Thus, living in either villas at Palm Jumeirah or apartment units in Downtown Dubai requires expats to mandatorily pay Hausings fee in Dubai.
Charges Included in the Dubai Housing Fees Since in catering for yourselves with the from Dubai Municipality Housing Fee, below are some of the charges set in order for you to properly plan and arrange financially for it.
Dubai housing fees, for tenants and homeowners alike, usually amount to 5% of the total annual rent for the property, to be paid on a monthly basis. An example for better understanding:
In 2023, for an apartment rented at DAMAC Hills, assume you are paying AED 70,000 annual rent.
So the Dubai municipality fee of this property would be AED 3,500 collected annually and paid in 12 installments as part of the tenant’s DEWA bill.
- Who pays? Expats renting or owning property in Dubai.
- How is it calculated? 5% of the annual rent (or estimated rental value for owner-occupiers).
- How is it paid? Automatically included in DEWA bills.
- Exemptions: Only UAE nationals are exempt from paying this fee.
Who Is Responsible for Paying for the Housing Fee?
The Dubai housing fee is, again, paid by expats residing within the city. For a rented property, the municipality fee has to be paid by the tenant. However, in case of an owner Occupied property, the owner caters for the fees only when the property is unoccupied.
Also Read:
- Off-Plan Properties vs. Ready-to-Move-In Properties
- Guide to Renting a Home in Dubai
- Guide to Sell Property easily in Dubai
How is the housing fee for the owners calculated in Dubai?
The fees are currently set at 5% of the actual rental or annual rent of the property, but this can always be subject to change according to the real estate authority in Dubai.
In case the property is vacant or occupied by the owner, the housing fee calculation is done based on expected annual rents for an equivalent property. The Dubai housing fee is not separately charged or billed under the DEWA bill, which will have the housing fee there. You will be paying the Dubai housing fee in your bill at the same time with other charges.
When looking at the DEWA bill physically, digitally, or in the DEWA app, such a bill will show you a breakdown of this particular bill along with other bills for water and electricity. The only people exempt from the Dubai housing fee are nationals of the UAE. If you’re not a national of the UAE, you have to bear this fee.
NOTE – Ejari Registration Fee
Ejari is Dubai’s mandatory rental contract registration system, regulated by the Dubai Land Department (DLD). It ensures transparency in rental agreements and is required to activate DEWA services.
- Who pays? The tenant is usually responsible.
- How much does it cost? AED 220 to AED 250.
- How is it paid?
- Online through the Ejari portal.
- At an authorized typing center.
How to Adjust the Housing Fee in Dubai?
In an event where you find it necessary to adjust your housing fee in Dubai, there may be several possible reasons. You may be a homeowner and feel that you are being charged excessively as compared to the market value of renting a similar property; or you may be a tenant and the landlord has reduced his rent.
You will have to go to the Dubai Municipality and make amendments to your residential details regarding your condition, which they will then assess. Processing would involve the following steps:
- Visit the official website of Dubai Municipality; click on ‘Services;’ choose ‘Dubai Municipal Fees’ and request approval to amend housing fee; fill in the relevant details; attach the documents required; click ‘Submit.’
- An electronic receipt will then be issued to you. The new details will be entered within three working days time, whereby in the event that an excess charge was enforced, the amount will be refunded as a DEWA credit.
- These housing fees for owners in Dubai constitute that, on the basis of RERA guidelines (Real Estate Regulatory Authority), the municipality fee is determined based on the average rental value of one’s property.
- To determine the average rent value for one’s property, the RERA rent calculator can be used. On the basis of how much an identical property would fetch in rent for a year, the calculator would then provide the market rate.
- To this amount, 5 percent will be added, and that will reflect in the DEWA bill. As said above, every expat living in Dubai is required to pay a housing fee which would be levied according to the Dubai Municipality.
- Whether residing in rented property, own property rented, or whether the resident owns it, he would have to pay the housing fee.
The housing fee may be an added charge to nascent homeownership or tenancy in Dubai, but it would just be one more example of a small price for staying at a beautiful and modern city as jazzy as Dubai.
In case your rents have changed lately, you know what to do from here. The calculation of the housing fee in Dubai should not be a problem anymore. While you are trying to budget before your next move, you can check out our guide on the hidden cost of renting in Dubai.
Where Can I Get More Information About DEWA Housing Fees?
The authority of Dubai Municipality shall be contacted at 800-900 if further information is required in regard to the housing fees specifically related to expatriates.
Additionally, to access information, calculate housing fees, report incidents, and initiate requests, the WhatsApp service provided by the Dubai Municipality can also be utilized.
FAQs About Dubai Housing Fees
Is the housing fee only charged when you come into another place?
This is no, rather, the housing fee of Dubai is an annual charge paid for expatriates who reside in the emirate.
When will I be charged the housing fee?
You will be charged each year which is equal to 5% off your property worth, and this charge is broken down into 12 equal installments.
Who is entitled for a fee exemption for the Dubai Municipality?
Only the UAE nationals are exempted from paying the fee of the Dubai Municipality.
can I use the calculator of the housing fee of Dubai?
There is no alternative for the special calculator of the housing fees. You just take the property rental value, take out 5% from it, and get the amount.
By what process does the municipality fee of Dubai come to be assessed?
The fee is assessed at 5% of the property’s rental value and is charged via your DEWA bill.
What is the fee of the Dubai Municipality for owners?
The amount charged for owners remains unchanged, as it does for tenants.
