Buying a house in Dubai is the dream of every expat living in the city. The city’s stable economy, luxurious lifestyle, and unique developments inspire investors and buyers worldwide to invest in Dubai’s real estate. Although the buying process is simple, some other fees are associated with it, and the Dubai Municipality housing fee is one of them. If you have recently moved to Dubai or plan to do so, you must familiarise yourself with Dubai Municipality’s housing charges. This blog will help you learn about the Dubai Municipal Housing to make your life easier in Dubai.
The Municipality Housing Fee in Dubai is an annual charge paid by homeowners and renters for facilities such as cleanliness, security, food safety, waste management, and public parks. DEWA collects fees from expats in exchange for these services. The fee is 5% of the property's annual rent, divided into instalments per the contract duration and charged in the monthly DEWA bill.
All expats living in Dubai are required to pay the municipality fee. If the property is rented, the renter will pay the fee. However, if the homeowner uses the property or it is vacant, the owner will pay the fee.
The Dubai Municipality Housing Fee invests in the improved quality of the city’s infrastructure and its services, improving and maintaining the city’s overall reputation. This helps residents to have well-maintained amenities, safety, and sustainability. The following is a list of services that are financed through the fee;
The fee funds the maintenance of Dubai’s roads, bridges, and public transportation networks. This includes repairing potholes and surfaces to minimise traffic disruptions, expanding critical infrastructure like tunnels and community parks, and upgrading metro stations and pedestrian pathways for seamless connectivity.
Residents’ contributions bolster Dubai’s efficient waste management framework, enabling daily rubbish collection, advanced recycling programmes, and eco-friendly disposal methods. These efforts align with initiatives like the Dubai Waste Management Master Plan, prioritising landfill reduction and environmental conservation.
Funds are allocated to ensure streets remain well-lit and safe after dark and emergency response systems are fortified against potential crises. The fee also supports urban beautification projects, such as landscaping in districts like Jumeirah and Al Barsha, which enhance the city’s visual appeal and liveability.
By channelling resources into these areas, the housing fee ensures Dubai thrives as a clean, secure, and sustainable metropolis. Residents’ participation in this system underscores a shared commitment to maintaining the city’s world-class standards.
There is no need to make extra efforts to pay the housing fee in Dubai. Dubai Electricity and Water Authority (DEWA) adds the fee to monthly utility bills. This way, you can never miss any payments and avoid surcharges. You can pay the housing fee in the following ways:
You can also pay the housing fee by visiting one of DEWA's quick pay partners, such as an Etisalat machine, an EPPCO (Emirates Petroleum Products Company) service station, or an ENOC (Emirates National Oil Company Group) service station.
If the rent has increased or decreased, the tenant or the owner is responsible for informing the Dubai Municipality Department of the fee adjustment. Here is how to request a Dubai Municipality Housing fee adjustment.
Your municipality fee will be adjusted in the DEWA bill. If you are overcharged due to a late update, reimbursement will be made on the next bill.
Dubai Municipality Housing Fee is a fee that residents and individuals planning on moving to Dubai should be aware of. This fee ensures the city's cleanliness, safety, and maintenance, and you can easily pay it through DEWA facilities. Knowing how it works, who pays it, and when adjustments can be made will better prepare you to manage your finances and avoid surprises. Whether you are a homeowner or renter, staying informed will help you navigate living costs smoothly in Dubai.
Planning to buy a property in Dubai? Don’t let hidden costs like the Dubai Municipality Housing Fee catch you off guard. Contact us today for a free consultation, and let’s make your property journey seamless.
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How can I calculate the Dubai Municipality Housing Fee?
Municipality fees are charged at 5% of the annual rent charged on the house. To get the monthly payment, multiply your annual rent by 5% and divide that by 12.
For instance, if your annual rent is AED 60,000:
60,000 x 5% = AED 3,000.
Finally, divide AED 3,000 by 12 to get the monthly fee: 3,000 ÷ 12 = 250 AED.
Municipality fees would cost you AED 250 each month.
Who qualifies for exemption from the Dubai Municipality Housing Fee?
UAE Nationals, commercial properties, Government-owned properties, and certain developments, including their infrastructure and services, are exempt from the fee.
What if the housing fee has been entered incorrectly?
You can file a dispute with DEWA if your housing fee has been calculated incorrectly. You must provide the tenancy contract and other relevant information supporting the claim. DEWA will review the case and correct the fee.
Do landlords pay DEWA housing fees?
The Dubai Municipality housing fee is an amount foreign property owners should pay while living in Dubai. However, the responsibility for this fee is transferred from the owner to the rent payers when renting a property.
Can my friend pay DEWA for me?
Yes, he can pay the bill for you. They only need to know your account number and use any of the above payment methods to pay the bill.
Who pays the outstanding DEWA bill of a previous tenant?
The property owner is responsible for settling the outstanding bills before renting the property to a new tenant.