Dubai is home to some of the most luxurious real estate developments, making it a sought-after destination for residents and investors alike. However, one of the costs that many residents may not be fully aware of is the Dubai Municipality Housing Fee.
This mandatory fee applies to all expatriates renting or owning property in Dubai and is collected to contribute to the maintenance of city infrastructure and public services.
If you are a tenant or a property owner in Dubai, this guide will help you understand everything about the Dubai Municipality Housing Fee—what it is, how it is calculated, who pays it, and how it is collected.
What is the Dubai Municipality Housing Fee?
The Dubai Municipality Housing Fee is a mandatory annual charge imposed by the Dubai Municipality on all expatriate residents in the city. The purpose of this fee is to fund municipal services such as:
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City maintenance
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Public infrastructure
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Waste management
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Road improvements
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General municipal services
This fee is automatically added to residents’ DEWA (Dubai Electricity and Water Authority) bills every month and is calculated based on the rental value of the property.
Who Needs to Pay the Housing Fee?
The housing fee applies to all expatriates living in Dubai, whether they are renting or owning a property. However, there are certain key points to note:
✅ Expatriate tenants: Required to pay the housing fee as part of their monthly DEWA bill.
✅ Expatriate homeowners: Must also pay the housing fee based on the estimated rental value of their property.
❌ UAE nationals: Emirati citizens are exempt from paying the Dubai Municipality Housing Fee.
How is the Housing Fee Calculated?
The Dubai Municipality Housing Fee is calculated as 5% of the annual rental value of the property.
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For Tenants: The fee is based on the rental amount stated in the tenancy contract.
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For Homeowners: The fee is based on the RERA Rental Index, which estimates the market rental value of the property.
Example Calculation:
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If your annual rent is AED 100,000, the housing fee would be:
AED 100,000 x 5% = AED 5,000 per year -
The monthly charge added to your DEWA bill would be:
AED 5,000 ÷ 12 = AED 416.67 per month
How is the Housing Fee Collected?
The Dubai Municipality Housing Fee is collected automatically through DEWA bills. Here’s how it works:
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DEWA Auto-Calculation: Once a tenancy contract is registered with Ejari, the rental value is linked to your DEWA account.
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Monthly Installments: The total 5% fee is divided over 12 months and appears on your DEWA bill as a separate charge under "Dubai Municipality Housing Fee."
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Homeowners’ Assessment: For homeowners, the fee is calculated based on RERA’s rental index, not the actual mortgage amount.
What Happens If You Don't Register Your Ejari?
The Ejari system is an official tenancy contract registration system in Dubai, and it plays a role in how the housing fee is applied. If a tenant fails to register their Ejari, DEWA will automatically assign a default rental value, which could be higher than the actual rent, leading to overpayment.
How to Avoid Overpaying the Housing Fee
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Ensure your Ejari contract is registered properly with the correct rental value.
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Update your tenancy contract details in DEWA when renewing or changing your lease.
Can the Housing Fee Be Reduced?
The housing fee is fixed at 5% of the rental value and cannot be directly reduced. However, if you believe the assessed rental value is incorrect or outdated, you can request a review from Dubai Municipality by:
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Submitting a complaint with supporting documents (Ejari contract and updated rental details).
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Contacting DEWA for any discrepancies in billing.
Key Takeaways
✔ Mandatory for all expatriates renting or owning property in Dubai.
✔ Calculated as 5% of the annual rental value and split into monthly payments.
✔ Automatically added to DEWA bills.
✔ UAE nationals are exempt from the fee.
✔ Ensure your Ejari is correctly registered to avoid overpaying.
✔ Homeowners’ fee is based on RERA’s rental index, not mortgage payments.
Final Thoughts
Understanding the Dubai Municipality Housing Fee helps expatriates in Dubai budget more effectively and avoid overcharges on their DEWA bills. By ensuring that your Ejari contract is correctly registered, you can prevent discrepancies in your housing fee calculations. If you suspect an incorrect fee assessment, it's always best to reach out to Dubai Municipality or DEWA for clarification.
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