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Living in Dubai is an exciting experience, filled with incredible opportunities, stunning architecture, and world-class amenities. But did you know that as a resident, you're also contributing to the city's seamless infrastructure through the DEWA housing fee? This essential charge helps maintain the public services that make Dubai such an exceptional place to live.
Whether you're a tenant or a homeowner, understanding the Dubai housing fee is crucial for managing your finances efficiently. In this guide, we’ll explore everything you need to know—from how it’s calculated to ways you can adjust or update it when necessary.
What is the Dubai Housing Fee?
The Dubai Muncipality housing fee is a mandatory municipal charge imposed by the Dubai Municipality on residents living in residential properties. This fee is automatically included in the Dubai Electricity and Water Authority (DEWA) bill, ensuring a streamlined payment process.
Why is the Housing Fee Important?
The Dubai Municipality housing fee plays a crucial role in maintaining the city’s world-class infrastructure. The collected revenue is used for:
- City Beautification – Parks, recreational areas, and public facilities.
- Road & Transportation Enhancements – Dubai Metro stations, bus stops, and roads.
- Public Services – Street lighting, emergency response, and city maintenance.
This fee ensures Dubai remains an attractive destination for residents, tourists, and investors.
Why is This Fee Charged?
The Dubai Municipality housing fee funds vital municipal services, such as:
- Waste Management Services – Regular garbage collection and proper disposal.
- Road and Infrastructure Maintenance – Keeping Dubai’s public infrastructure in top condition.
- Public Safety Initiatives – Ensuring street lighting, emergency preparedness, and city cleanliness.
How Much is the Dubai Municipality Housing Fee?
The housing fee Dubai is calculated at 5% of the annual rental value of the property. The rental value is based on your tenancy contract or an assessment by the Dubai Municipality for owner-occupied properties.
Examples of Housing Fee Calculation
| Annual Rent (AED) | Annual Housing Fee (5%) | Monthly Installment (AED) |
| 60,000 | 3,000 | 25 |
| 120,000 | 6,000 | 500 |
| 300,000 | 15,000 | 1,250 |
If your annual rent changes, your housing fee will also change accordingly.
Who Needs to Pay the Housing Fee?
The Dubai Municipality fee applies primarily to expats renting or owning properties in Dubai.
Tenants
Tenants are responsible for paying the housing fee, which is automatically included in their DEWA bill. The fee is based on the annual rental contract and is paid in monthly installments.
Owner-Occupiers (Expats)
If you own and live in the property, you must pay the housing fee based on the estimated rental value determined by the Dubai Municipality. This charge is included in your DEWA bill, just like it is for tenants.
Investors & Landlords
If the property is rented out, the tenant bears the responsibility of paying the Dubai Municipality housing fee. The landlord or property owner does not directly pay this fee unless they are living in the property themselves.
Exemptions
UAE Nationals who own and live in their properties are exempt from paying the housing fee. This exemption applies exclusively to Emirati citizens residing in their own homes, ensuring that they are not subject to additional municipal charges.
Additionally, certain government housing accommodations may also be exempt from the fee. These exemptions typically cover properties provided under specific government schemes or housing programs designed for eligible residents.
How to Pay the Dubai Municipality Fee?
The DEWA housing fee is seamlessly integrated into your monthly DEWA bill. You don’t need to make a separate payment. The steps to pay are simple:
- Check Your DEWA Bill – The fee appears as a line item under ‘Dubai Municipality Fee.’
- Pay Your DEWA Bill – Pay through the DEWA website, mobile app, or an authorized payment center.
- Monitor Your Payments – Ensure your fee is accurate and reflects any recent rental changes.
How to Adjust or Update Your Housing Fee
If your rental amount changes due to a renewal or updated tenancy contract, you need to update the Dubai Municipality fee to avoid paying an incorrect amount. You can follow the steps below to update the housing fee:
- Gather Required Documents:
- Updated Ejari certificate
- Valid tenancy contract
- Emirates ID
- Visit Dubai Municipality Online Portal or Service Center.
- Submit a Fee Adjustment Request via the official website.
- Wait for Confirmation – The municipality will process the request, and the changes will reflect in your next DEWA bill.
How to Reduce the Housing Fee?
While the housing fee in Dubai is mandatory, here are ways to minimize its impact:
- Negotiate Your Rent – A lower rental value means a lower housing fee.
- Relocate to a Lower-Rent Area – The fee is based on rental value, so moving to an area with lower rents reduces your fee.
- Ensure Your Rental Contract is Updated – If your rent decreases, make sure your Ejari details reflect the change.
FAQs
Non-payment may result in penalties, disconnection of DEWA services, or legal notices from the municipality.
The fee is charged monthly and appears on your DEWA bill.
Yes, both renters and owner-occupiers (expats) pay the housing fee at 5% of the rental value.
- Negotiate a lower rent.
- Move to a lower-rent area.
- Ensure your Ejari is updated if your rent decreases.
The DEWA bill lists your Dubai Municipality housing fee under the fee section.
You can request an adjustment through the Dubai Municipality’s official website by submitting an Ejari update and tenancy contract.
Yes, UAE nationals living in their own properties are exempt from paying the DEWA housing fee.
Understanding the DEWA housing fee is crucial for managing your finances in Dubai. Whether you are renting or own a property, being aware of how the Dubai Municipality housing fee is calculated, paid, and adjusted will help you avoid overcharges and manage your expenses effectively.
For more information, get in touch with us at Provident