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For expatriates relocating to Dubai and living in freehold (owned) and non-freehold (rented) housing you will need to set-up an electric and water utility connection with DEWA (Dubai Electricity and Water Authority). An important factor to understand in the DEWA billing process is the associated housing fee that is incurred. Housing fees for expat tenants is calculated on 5% of the unit’s annual rent, while expat owners must pay 0.5% of the value of the property as determined by RERA’s (Real Estate Regulatory Agency) rental index. These amounts are divided by 12 months and each month invoiced in instalments. Read more
When moving to Dubai and looking for property it is important to budget for the ‘Housing Fee‘ which needs to be paid for on top of your rent.
This fee is imposed by the Dubai Municipality.
Dubai Municipality is one of the largest governmental institutions in charge of cultural and heritage development, apartments and buildings regulation, food control, drainage network, sewage treatment, public parks, public health and safety, and various other municipal affairs and services.
The Housing Fee is calculated as 5% of the yearly rental charges which is then divided into 12 equal installments and added each month to your DEWA (water and electricity bill). Dubai Municipality base your annual rent on the Dubai Rent Index so if this is too high you must contact the municipality and advise them of your rent. Read more
Authorities Set to Tighten Up on Collection of the Housing Fee
When relocating to Dubai one of the extra charges expatriates should always remember when budgeting is the five per cent Municipality Housing Fee. This is calculated at five percent of the tenant’s annual rent or five percent of the property’s freehold value (if you own a property) and is billed through the residents’ monthly DEWA (utility) bills. Read more
