The municipality charge appearing on a DEWA bill is generally known as the Dubai Municipality Housing Fee.
It is an annual charge imposed by Dubai Municipality and collected in monthly instalments through the DEWA bill. It is separate from charges relating to electricity and water consumption.
How Is the Municipality Housing Fee Calculated?
For a rented residential property, the housing fee is generally calculated at 5% of the annual rent stated in the registered Ejari tenancy contract.
The total annual housing fee is then divided into 12 monthly instalments and added to the DEWA bill.
Calculation formula:
Annual rent × 5% ÷ 12 = Monthly municipality housing fee
For example, where the annual rent is AED 120,000:
AED 120,000 × 5% = AED 6,000 annually
AED 6,000 ÷ 12 months = AED 500 per month
Therefore, the monthly municipality housing fee would generally be AED 500.
Why Are Municipality Charges Higher for Some Properties?
Some properties have higher municipality charges than others because the fee is based on the property’s registered or assessed annual rental value, rather than its electricity or water consumption.
A property with a higher annual rent will normally have a higher monthly housing fee.
Rental values may differ depending on factors such as:
- The size and type of the property
- The property’s location
- The building and available facilities
- The floor level and view
- Whether the property is furnished
- The condition or standard of the unit
- The rental amount agreed under the tenancy contract
- The date on which the tenancy contract was entered into or renewed
As a result, even apartments located in the same building may have different municipality housing fees because their registered annual rents or assessed rental values may not be the same.
Owner-Occupied Properties
Where a property is occupied by its owner and there is no Ejari tenancy contract, Dubai Municipality may calculate the housing fee using an assessed annual rental value for the property.
The assessment may take into consideration the property’s location, size, type and applicable rental values in the surrounding area.
Why Might the Charge Appear Incorrect or Higher Than Expected?
In some cases, a higher housing fee may be caused by outdated or incorrect information in the relevant records. This may include:
- A previous Ejari rental amount
- An expired or renewed tenancy contract that has not been reflected
- An earlier assessed rental value
- Incorrect ownership or occupancy information
- Changes to the property details that have not yet been updated
The municipality housing fee is not directly linked to the amount of electricity or water used. Therefore, two properties with similar utility consumption may still have different municipality charges.
Requesting an Amendment
Where the rent, Ejari details, ownership status, occupancy status or property information has changed but the municipality charge has not been updated, the customer may submit a Dubai Municipality Housing Fee amendment request for review.
Supporting documents may be required, such as the current Ejari certificate, title deed, DEWA account details or other documents confirming the property’s rental or ownership information.
Any amendment or adjustment remains subject to Dubai Municipality’s review and approval.