Housing fee for freehold property owners to stay

Freehold property owners in Dubai will continue to be charged housing fee as Dubai Municipality has not been asked to stop levying the fee from them by a higher committee, Dubai Municipality Director General Hussain Nasser Lootah said.

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Published: Tue 27 Sep 2011, 2:47 PM

Last updated: Tue 10 Jan 2023, 9:58 AM

Speaking to Khaleej Times on the sidelines of the Future Cities Conference, Lootah said no final decision had been taken to revoke or reduce the housing fee levied from freehold home owners.

He said the Municipality had already briefed the review committee which was set up by the Dubai Executive Council to look into the complaints from freehold property owners who had alleged that they were being charged twice as they already pay service fee for their developers.

However, no final decision has been taken by the committee, according to Lootah.

‘We have explained to committee the details about the fee and why we are charging every housing unit in Dubai. But, there is no final decision taken yet by the Council,’ he said.

The civic chief said the Municipality had not suspended the housing fee for anybody and would continue to charge all housing units in Dubai until it got any further instructions from the Executive Council.

He added that there was no plan to increase the fee either.

The municipality has set the housing fee for leased units as the five per cent of their monthly rents.

It had also revised the housing fee for homeowners in freehold properties, which used to be calculated as 0.5 per cent of the total purchase value per year, to the five per cent monthly rental value of properties with similar dimensions in their areas, as estimated by the Real Estate Regulatory Agency.

From this year, the Municipality started collecting the fee monthly along with the utility bill payments through Dubai Electricity and Water Authority. The Municipality had said that the housing fee was not a tax but a service fee levied on expatriates for all the municipal services provided across the emirate of Dubai.


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