Expenses to expect when moving to Dubai

Ejari: registration of the tenancy agreement

One of the first steps to take when renting a property in Dubai is to register the tenancy through the Ejari system. This process is compulsory and formalises your tenancy agreement with the Dubai government.

Cost of Ejari registration

The costs associated with Ejari are relatively modest, generally around 220 AED. However, it is essential not to overlook this expense, as it is essential for opening a DEWA (Dubai Electricity and Water Authority) account and for other services relating to your accommodation.

DEWA deposit: ensuring your essential services

DEWA is the organisation responsible for managing electricity and water in Dubai. When you open your DEWA account, a deposit is required to guarantee payment of your bills.

Amount of the DEWA deposit

This deposit varies depending on the type of property you are renting. For a flat, it is usually 2,000 AED, whilst for a villa, it can be as high as 4,000 AED. This sum is refundable at the end of your tenancy agreement, once all your bills have been settled.

Housing fees: the housing levy

«Housing fees» are a tax levied by the Dubai municipality on all residents.

Calculation of housing fees

It is calculated on the basis of your annual rent, at a rate of 5 %. These charges are spread over twelve months and added to your DEWA bills. It is important to factor this expense into your monthly budget, as it is a recurring and unavoidable cost.

Agency fees: remuneration for intermediaries

Estate agents play a key role in Dubai’s rental market. If you use an estate agent to find accommodation, you will need to factor in agency fees.

Percentage of agency fees

These fees usually amount to 5 % of the annual rent and are payable upon signing the tenancy agreement. It is possible to negotiate these fees, but they remain a significant expense that needs to be factored in.

Air-conditioning costs: an unavoidable expense

Air conditioning is essential in Dubai, where temperatures can soar to dizzying heights.

The impact of air-conditioning costs on the budget

In some blocks of flats, air-conditioning charges are included in the rent, but in others they are charged separately. If you have to pay these charges, they can account for a significant proportion of your budget, especially during the summer months. It is therefore crucial to find out all the relevant details on this point before signing a tenancy agreement.

Flat deposit: safeguarding the rented property

The flat’s security deposit is a sum of money that you pay to the landlord to cover any damage or outstanding rent.

Refund of the deposit

In Dubai, this deposit is usually equivalent to one month’s rent. It is refundable at the end of the tenancy, provided the property is returned in good condition. It is advisable to document the condition of the flat thoroughly on arrival to avoid any disputes when the deposit is returned.

The Internet: staying connected

Finally, staying connected in Dubai comes at a cost. Home internet services are generally provided by two main operators: Etisalat and du.

Set-up fees and subscription charges

Installation charges vary depending on the current offers and promotions, but you should expect to pay around 500 AED for the initial installation, in addition to the monthly internet subscription fee. Packages vary depending on connection speed and the services included, but you can find subscriptions starting from 300 AED per month.