All tenants in Dubai will have to pay a five per cent housing fee based on their tenancy contracts, with the Municipality asking the Dubai Electricity and Water Authority to collect the amount through the utility bills.
The housing fee is applicable to all residents and commercial establishments.
As a tenant or resident, what are your views on this? Is this housing fee justified? What do you expect to get in return for the fee paid?
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My opinion in this matter is that the hike in housing fees and all expenses are ok. But at the same time the government should order employers to compulsarily increase employee salaries as well.
From Don,
Dubai
Driving expats away
Very Good, this is the best way to move out expats from this country. Expats come here to live happily and to make their family happy in their respective country. But here the scenario is changing day by day, rising rents, rising cooking oil prices, petrol and more and more and now DM is imposing a house fee. How can expats live happily in these conditions? The salaries and business are not growing compared to the expenses.
From Nirav,
Dubai
Landlord should pay
I think this housing fee is ridiculous! We are already paying a lot of money as rent, on top of that we have to pay another five per cent of the rent as a fee. But why should the tenants pay this housing fee? We dont even own the houses we live in, then why should the burden lie on our heads? We are paying rent to the landlord, who owns the property and it is the landlord who should pay any fees to the municipality.
From Safir,
Dubai
What about other taxes?
I find it outrageous, The reason for this tax is to pay for the municipality services, like road maintanance. How about the taxes we are paying while renewing the car registrations?
From Mohammad,
Dubai
Prices increasing
The housing fee is another burden on already suffered people. From last year Dubai is getting worse. The price of everything is increasing but the salary is fixed. People are facing difficulty to make ends meet. The government should consider the problems of people who are the active part on any country's progress.
From Syed,
Dubai
Going home
God is great and I thank him that I am going back to my country after 11 years. At least my hard earn money is mine there.
From Mohammad,
Dubai
Provide cheaper housing
I think this is very painful to all Dubai residents, and especially the middle class. I think people who are making these decisions should do a survey and see the difficulties people face to support their families. The increase in rent within three years and grocery bills and school fees that have increased from 10 per cent to 200 per cent. If they want to collect housing fees then they should provide cheaper houses and better livings and special packages for small to medium-salaried people.
R.K.,
Dubai
Rent control needed
The Increase of housing fee is really a big burden on expatraiates. The salary scale of the people, inspite of their hardwork, is not increasing in accordance with the rising prices. Already most landlords charge unjustifiable rent and the housing fee now will put a category of people in depression, thereby leading to socio-economic problems. Either a rent fee control is a must in my opinion, since the tenants are already paying high DEWA bills too.
Grace,
Dubai
The Dh12,000 apartment
Municipality officials talk about rent being Dh12,000. Ask them to find us a place for Dh12,000 in Dubai. Currently we are paying Dh50,000, then the housing fee charged will be Dh2,500.
Deepthy,
Dubai
Clear signal
Here it goes again! Dubai has proved to be more expensive and no feelings and regards for the expatriates living here with their families. By implementing the housing fee to be paid by tenants, it is made clear that only the locals or people from the upper class have the right to live with their families, as the middle and lower class are already facing the consequences of high rents and other expenses. Leave alone saving, the income earned is not enough nowadays to cover the expenses. If they want to levy another fee, it means they want to give a straight signal that low/middle class expats can go back, we don?t want you anymore.
From A Reader,
Dubai
Name withheld by request
Getting difficult
It is quite disappointing to realise that being in the Middle East is getting much more difficult to live irrespective of the facts that no value/rights given to the expats. Over the last 25 years, the rents have shot up so much that if we were in another country, we would have been millionaires. It is rather unfair that the government does not do anything in return but just keep asking for more money when the companies are not willing to pay more. The depressing factor remains that with the boom in the rate of growth in Dubai, it is scary to see that we might be lost trying to live a simple life with the amount of money charged on housing, DEWA and now the municipality tax. We work and live here, this is our home - the government has to be more aware of the needs and commitments rather always having a commercial/profitable motive.
Jessy,
Dubai
Not justified
I feel the structure of?five?per cent of the rent is totally not justified. Let me quote you a simple example: I'm staying in a one bedroom apartment which was rented since last four years. Initially the flat costed 19K which has risen to 35K in a span of?four years. The building is the same and so is the surroundings around me and will be the same in the future.Then why do we have to pay a fee which increases as per the rent when the services to be offered will be limited to the same area. Two solutions: Either control the rent increase borne by a tenant or keep a fixed fee which will not be increases along with the rent every year. If the either is not checked the poor tenant will be considered "Double Taxed".
Sumant,
Dubai
Contemplating leaving
I was living in UAE for last ten years. Salaries were less, but life was much easier, then two years ago, everything started to change - slight increase in salaries and dramatic change in cost of living. I am thinking of going back to my country every day. It is very hard to live here!
Samer,
Dubai
Go Green
Dubai has missed a golden opportunity to reduce the current 'waste' of resources. Instead of fixing the Municipality Tax on the value of the tenancy contract, (which is a form of wealth tax), why not fix it directly as a percentage of the monthly DEWA bill for water and electricity. This way, every household might endeavour to conserve resources. Who knows, some of the myriad of lights seen around certain houses might even be dimmed, and daily car washing (totally unnecessary) might be a thing of the past! I'm off for my monthly bath now...by candlelight, of course.
Nigel Perry,
Dubai
Please spare us
Dubai Municipality charges a housing fee for keeping the city clean. Same charges they charge to companies while renewing their license annually as General Cleaning fee & Employee Accomodation fees. Doesnt these fees cover for whaht they charge people as housing fee? Already landlords are taking skyhigh rents from people. If the Municipality wants to charge a fee they should collect it from landlords as it won't affect their bank balance. The average salaried are already suffering ffrom rising rents and rising cost of living.
Firoz,
Dubai?
Landlords must pay
I think this housing fee is ridiculous! We are already paying a lot of money as rent. But why should the tenants pay? It is the landlord who should pay any fees to the municipality.
Saif,
Dubai?
Be fair to expats
How do they expect us (middle class) to survive? We've been working so hard to serve your country and now all our salaries go towards high rent! Last year, we rented a flat (a two bedroom flat with small rooms) for Dh61,000. Now they have increased it to Dh71,000 per annum. Dewa charges are already high. Now we do not know where to get this 5 per cent housing fee. We came here to save and earn - not to spend for these expensive flats. We also have a family to feed back home.Be fair to us - expats are needed to serve this country.
From Filipino expats,
Dubai
We want to stay
No, it?s a bad thing to do. People want to live here but they just hike up everything and make it so difficult. Its like they don?t want us to stay. First of all we do all the hard work and we try to be happy with the little which we have ? life is too short my friends ? so just let?s have a peaceful and happy life. We wish this country all the best for the future. We love Dubai and we want to stay. Pease consider.
From Gia W,
Dubai
Paying twice for the same service
My personal problem with the Dubai Municipality housing fee is that they state that the fee is for services which, according to DM, they do not provide in the 'New' residential developments, for example in Emirates Hills, where the developer provides these exact services. If you own a villa in one of these 'New' areas you also get charged your service charge fees (payable to the developer on a monthly basis) which covers the same services which DM are claiming their 5% housing fee covers - such as keeping the streets clean, clearing the garbage, undertaking pest control measures, and landscaping and beautification projects, among others!
So, effectively people who own a property in these areas are being told they have to pay DM the fee for the above services but that DM do not cover these areas, the developer provides these services (and we pay the developer for these by means of service charge fees) so why are the DM fees the same for people living in the 'New' areas as people who live in the older areas covered by the DM?
Also, another injustice, DM doesn?t provide cover for these areas in relation to landscaping, cleaning, rubbish removal etc. However, generally the people living in these 'New' areas are the ones that have been hit with the housing fee first as it is the new properties that have been registered with DEWA to pay the fee. Otherwise DEWA would not connect the villa up!
Somewhere along the line DM and the developers need to come up with a fee structure based on the amount of services provided by DM for that area. Otherwise people in the New areas are effectively paying twice for services only covered by one party.
From Natalie M,
Dubai
Greedy landlords
The housing fees had been implemented about a year ago. Why only now this issue been highlighted? I rented a villa in Springs for Dh60,000 a year ago and have been paying housing fees of Dh250 every month on top of my DEWA bills. Till today, I had paid Dh3000 on housing fees alone for one year. Now I have to let go of the villa because the landlord claims they wanted to stay there which I strongly believe is just an excuse to chase us out so that they can rent it at the current market rate of Dh100,000 to Dh120,000. If the housing problems persist further, I would rather be back home than giving my hard earned money to these greedy landlords.
From A Singaporean,
Dubai
What do we get in return?
The landlords already have an upper hand on the tenants after receiving the permission to increase rents by 15 per cent. Five per cent more to the municipality makes the total 20 per cent. Which is really a lot. Salaries don?t even increase 10 per cent a year. And what service will the municipality give the tenants by charging this housing fee?? Whether higher class or middle, this fee is merely a way to take money earned, back from them. The Dubai government should consider the income of the people here while bringing in any more fees.
Ali,
Dubai
?
Control the rent
If Dubai Municipality feels that five per cent housing fees have to be collected from tenants, then DM must also take necessary action to control the rent. Since there is no control every owner of the building is raising the rent enormously making middle class people suffer in Dubai.
From Athmaram,
Dubai
Forcing people to leave
In my opinion it is too bad for tenants. Already they are paying unbelievable house rents.
I think it is telling us that middle class people cannot stay here. Too many families are going to back their country because of rent, now the tax will be another problem for them.
From Shibu,
Dubai
Only for the rich
I am a student studying in Dubai and am surprised to see the pressure the authorities are putting upon the expats. The increase in rent, increase in prices of petrol and cooking gas, and other increases in prices of commodities are making life miserable for the middle-class families in Dubai. To add to this misery, the increase in school fees is another rise in price. The collection of a five per cent tax on housing fee from expats is another surprise. Expats mainly come to UAE to save money which they are unable to do so in their home countries. But here the situation is reverse. If the increase in prices is not regulated, the UAE will only consist of locals and high-class expats. Low and middle income groups will be thrown back to their home countries.
From Disha,
Dubai
Another burden
The housing fee had been in place since 1962, but the situation of Dubai is not the same as 1962. Everyone knows that the rent is already eating into the tenants/residents of Dubai. Under the circumstances, the extra burden will further worsen the situation.
From A Reader,
Dubai,
Name witheld by request
One thing after another
Here we go, Dubai has done it again! As if the already unjustifiably high rents were not enough, or the hike in fuel prices (gasoline and diesel in an oil producing country) is not a disgrace, Dubai Municipality decides to step in and make it even harder on everybody, in cooperation with DEWA who already charges us high cost for electricity and water.
From Marc,
Dubai
