Dubai Housing Fee Explained

If you live in Dubai, you’ve likely noticed a line on your DEWA bill labeled “Housing Fee.” For many expats and even new homeowners, this charge is unexpected and often misunderstood. But understanding it is crucial — especially since it appears every single month. In this article, we’ll break down what the Housing Fee is, who needs to pay it, how it’s calculated, and what to do if it’s wrong.

Housing Fee

What Is the Housing Fee in Dubai?

The Housing Fee is a mandatory municipal fee charged by Dubai Municipality. It amounts to 5% of your annual rent or property’s estimated rental value. The fee is collected to fund essential services across Dubai — such as waste collection, road maintenance, public safety, parks, and infrastructure improvements.

Unlike taxes in many other countries, this fee is not tied to income or wealth — it is strictly based on the rental value of your home.

Housing Fee

Who Is Required to Pay the Housing Fee?

The Housing Fee applies to:

  • Expat tenants: Charged based on the rent registered in the Ejari system.
  • Owner-occupiers (expats): Charged based on the estimated rental value from RERA.
  • UAE Nationals: Exempt from paying the fee.
  • Commercial tenants: Subject to a separate calculation, not covered in this article.

If you are an expatriate and either rent or live in your own property, this fee is almost certainly part of your monthly utilities.

Housing Fee

How Is the Housing Fee Calculated?

The Housing Fee is calculated as:

5% × Annual Rent (or RERA Estimated Rent Value)

For example:

  • Annual Rent: AED 100,000
  • Housing Fee: AED 5,000
  • Monthly charge: AED 416.67 (added to your DEWA bill)

For property owners, the municipality uses RERA’s rental index to estimate the property’s value — even if there is no tenant.

Housing Fee

How to Check Your Housing Fee Amount

To verify how much you are being charged:

  1. Open your DEWA bill (online or paper)
  2. Look for the “Dubai Municipality Fee” line
  3. Multiply it by 12 to check if it matches 5% of your annual rent

You can also:

  • Log in to your DEWA account
  • Use the DubaiNow app
  • Check your registered rent in Ejari

Housing Fee

How to Correct or Adjust the Housing Fee

If you believe the Housing Fee is being miscalculated — for example, if your rent was reduced or your Ejari wasn’t updated — you can submit a correction request.

✅ Adjustment Steps:

  1. Visit Dubai Municipality’s official portal
  2. Select “Apply to Amend Housing Fee”
  3. Upload:
    • Tenancy contract
    • Valid Ejari certificate
    • DEWA bill or account number
  4. Submit the form

You can also do this via the DubaiNow app.

🕒 Timeframe: Usually resolved within 3–5 business days
💸 Refunds: If overcharged, the amount is credited to your DEWA account

Housing Fee

Frequently Asked Questions (FAQs)

❓ Is the Housing Fee a property tax?

No. It is a municipal fee — not a tax — based purely on your property’s rental value.

❓ Can I refuse to pay the Housing Fee?

No. It is mandatory for all non-citizen residents. DEWA will not allow unpaid housing fees.

❓ What if I vacate the property?

The fee stops once your DEWA and Ejari accounts are closed or updated.

❓ I’m not living in the unit. Do I still pay?

Yes, if you’re a non-UAE owner, the fee applies based on estimated value unless you prove the unit is unoccupied long-term.

 

Housing Fee

 

The Housing Fee in Dubai is a standard part of life for most residents — tenants and owners alike. It’s not a hidden tax, but a clearly calculated municipal fee that helps keep the city running. Make sure your Ejari and DEWA details are always up to date, and if you notice inconsistencies, don’t hesitate to file a correction request.

Understanding your Housing Fee ensures you’re only paying what’s fair — and not a dirham more.

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