Living in Dubai comes with many lifestyle benefits, from world-class infrastructure to a diverse community and top-notch facilities. However, residents are also subject to certain government-imposed charges—one of which is the Dubai Municipality Housing Fee. This fee is applicable to both tenants and property owners and is collected to help maintain the city’s infrastructure and services.

In this blog, we’ll break down what the Dubai Municipality Housing Fee is, how it’s calculated, who pays it, and everything else you need to know.

What is the Dubai Municipality Housing Fee?

The Dubai Municipality Housing Fee is a service charge imposed by the Dubai Municipality on all residents—whether they are renting or owning a property. It is meant to contribute to maintaining public services such as waste management, city cleanliness, and infrastructure improvements.

Who Needs to Pay the Housing Fee?

• Tenants: If you are renting an apartment, villa, or any other type of property, you are required to pay this fee.

• Owners: Property owners who live in their own homes also need to pay the housing fee.

How is the Housing Fee Calculated?

• The Dubai Municipality Housing Fee is typically calculated at 5% of your annual rent.

• For owners living in their own property, it is calculated based on the annual rental value estimated by RERA (Real Estate Regulatory Authority).

Example:
If your annual rent is AED 60,000, the housing fee will be:
AED 60,000 × 5% = AED 3,000 per year (AED 250 per month).

How is the Housing Fee Collected?

• The fee is automatically added to your monthly DEWA (Dubai Electricity and Water Authority) bill.

• You’ll see it listed as “Housing Fee” in your DEWA statement.

Key Things to Know

• The housing fee is mandatory for all residents.

• Even if you change your residence, the fee will be adjusted based on your new rent contract.

• Non-payment may result in penalties or service disruptions.

Why is the Housing Fee Important?

The collected fees go towards keeping Dubai’s infrastructure world-class. It helps maintain waste management, sewage systems, road networks, and other city services that make living in Dubai comfortable and sustainable.

The Dubai Municipality Housing Fee may feel like an extra cost, but it plays a vital role in maintaining the quality of life in the city. Whether you are a tenant or a property owner, knowing how this fee works will help you manage your budget better and avoid surprises on your DEWA bill.