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? Dubai Housing Fee is used interchangeably with the term “Dubai Municipality Housing Fee”.

The Dubai Housing Fee is an annual charge paid by non-UAE nationals who occupy a property, whether rented or owned, 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 essential to understand the charges that fall under the Dubai Municipality Housing Fee, as this can help you better manage 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 some examples.

Housing Fee Examples

Who is Responsible for Paying the Housing Fee?

As mentioned previously, the Dubai housing fee is paid by expats living in the city. This means anyone who is a non-UAE National, living in Dubai, will pay the Dubai Housing Fee.

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 be responsible for paying 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, whether physically, digitally, or within the DEWA app, you will see a breakdown of the bill that outlines the exact fee, alongside other fees such as 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, perhaps you are a homeowner who feels you are being overcharged based on the expected rent, or you are a tenant who has had your rent 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 display the market rate for the annual rent of a comparable property. 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

Understanding the Dubai housing fee is an important step in budgeting for life in the emirate, whether you are buying a home, investing in property, or renting. While the 5% municipality charge may seem like an extra expense, it contributes to the essential services that make Dubai one of the world’s cleanest, safest, and most desirable cities to live in. By knowing how the housing fee is calculated, who pays it, and how to adjust it if needed, you can better plan your finances and avoid surprises on your DEWA bill.

If you are ready to take the next step towards owning or renting a property in Dubai, Engel & Völkers is here to guide you. With over 45 years of global real estate expertise and a strong presence in Dubai’s most sought-after communities, we offer tailored advice, market insights, and a network of over 200 local property experts. From finding your dream home to navigating mortgages and legal requirements, our team will ensure your Dubai property journey is seamless and rewarding.