Dubai: As Dubai residents pay lower rents, it also means lower housing fees for them.
However, to get the fee adjusted downwards, they need to be prepared to spend at least one full day standing in line.
Residents pay housing fee equivalent to five per cent of the tenancy contract value. This is included in their utility bill.
Since there's only one desk at the Dubai Electricity and Water Authority (Dewa) headquarters near Wafi City where this adjustment can be done, it is swamped with hundreds of requests.
Mustafa, a Dewa staff, said: "We've been busy these past few months with the housing adjustment. But it's a job we have to do."
A staff of Dubai Municipality's Finance Department stationed in Dewa who asked not to be named told XPRESS: "We get more than 100 new tenancy contracts [with less rent] on a daily basis."
Rana, an Asian housewife, said her landlord reduced her three-bedroom apartment rent in Al Ghusais from Dh69,000 to Dh60,000, which meant an addition savings of Dh500 a year in housing fees. "It's good money. The only downside is that having it adjusted on the bill is a day-long affair for me," she said.
Other customers asked for more staff to deal with the rush. Customers who come by mid-day must be ready to wait longer. By noon, the manual queue system shows the first round of 100 customers are still being attended to.
The recalculation is done in under two minutes for each customer, but the inflow of people does not stop till about 2.30pm.
Ram, whose landlord reduced the rent for his Bur Dubai studio from Dh32,000 to Dh28,000 said: "My landlord offered to reduce the rent, which is good. It would be nice if there were more desks."
More such adjustments are expected as rents are expected to slide further in Dubai this year. Real estate consultancy Jones Lang LaSalle's (JLL) April report noted that 20,000 new units are expected by end-2011, which would drive low- to mid-end apartment rents to an average drop of five per cent this year.
A Dubai Land Department official, however, said that about 10,000 new houses would enter the property market this year.
Those whose rent is lowered must have their new contract certified by Dubai Municipality and they must also ask for a letter in Arabic requesting Dewa to adjust the housing fee.
How it's done
Bring old and new contracts to show reduced rent to Dubai Municipality's Al Twar office
Get a request letter (in Arabic) for housing fee recalculation
Go to Billing Control Desk (No. 6) at Dewa billing section
