The True Cost of
Renting in Dubai

The security deposit is the largest single upfront payment in a Dubai tenancy. For unfurnished properties, landlords are permitted to request up to 5% of the annual rent; for furnished units, this rises to 10%. The deposit is held by the landlord — not a third party — and must be returned within a reasonable period after the tenancy ends, subject to any legitimate deductions for damage beyond normal wear and tear.

Under RERA regulations, landlords cannot make arbitrary deductions. If a dispute arises, tenants may escalate to the Rental Dispute Centre (RDC) at the Dubai Land Department, which adjudicates such matters for a nominal filing fee.

The agency fee — also called the brokerage commission — is paid to the registered real estate agent who facilitated the transaction. In Dubai, the standard rate is 5% of the annual rent, paid once at the time of signing. This fee is non-refundable and is separate from any fees charged by the landlord.

Always ensure your agent is RERA-licensed. You can verify any agent's credentials on the Dubai REST app or the DLD website. Unlicensed brokers have no legal standing to collect fees.

Ejari is the official tenancy contract registration system operated by the Real Estate Regulatory Agency (RERA). Registration is mandatory for all residential tenancies in Dubai. Without an Ejari certificate, tenants cannot connect DEWA utilities, apply for a Dubai residency visa, or access most government services tied to the address.

The current registration fee is AED 220, payable online through the Ejari portal or at authorised typing centres. Registration is typically completed within 24–48 hours.

The Dubai Electricity and Water Authority (DEWA) requires a refundable security deposit before activating your account. The standard deposit is AED 2,000 for apartments and AED 4,000 for villas. A one-time connection fee of AED 130 is also charged.

Monthly DEWA bills vary significantly based on consumption, unit size, and whether the building uses district cooling. Expect AED 300–800 per month for a standard apartment, rising to AED 1,500+ for large villas in summer.

The Dubai Municipality Housing Fee is 5% of the annual rent, collected in monthly instalments through your DEWA bill. It is not a separate payment — it appears as a line item on each DEWA statement. This fee is mandatory for all residential tenants and cannot be waived.

Because it is collected monthly, the housing fee does not form part of your upfront costs. However, it is a real recurring expense that should be factored into your monthly budget.

District cooling — commonly called "chiller" — is a centralised air-conditioning system used in many modern Dubai developments. If your building uses district cooling, you will pay a separate monthly charge to the cooling provider (EMICOOL, Empower, Tabreed, or similar) in addition to your DEWA bill.

Expect a refundable deposit of AED 1,000–2,500 depending on the unit size, plus a connection fee of AED 300–700. Monthly cooling charges are billed separately from DEWA and vary significantly by provider and consumption. Always confirm with your agent whether the property is chiller-free — meaning cooling costs are included in the service charge — as this materially affects your total occupancy cost.

Service charges are annual fees levied by the building's master developer or owners' association to fund the maintenance of shared facilities — lobbies, pools, gyms, landscaping, and security. In most Dubai tenancies, service charges are borne by the landlord, not the tenant. However, in some lease agreements — particularly for commercial units or certain freehold communities — the obligation may be passed to the tenant.

Rates vary widely: from AED 5–8 per sq ft per year in standard buildings to AED 20–35 per sq ft in premium communities such as Dubai Hills, Emaar Beachfront, or Palm Jumeirah. Always clarify in writing who bears this cost before signing.

Beyond the standard line items, tenants should budget for several additional expenses that are easy to overlook:

• Moving & Relocation: Professional movers typically charge AED 1,500–3,500 for a standard apartment, depending on volume and distance.
• Home Contents Insurance: Not legally required but strongly recommended. Annual premiums start from AED 300–500 for basic coverage.
• Internet & TV Setup: Etisalat (e&) and du both charge a one-time installation fee of AED 100–300, with monthly plans from AED 250.
• Maintenance Deposit (select buildings): Some landlords request an additional AED 500–1,000 maintenance deposit, separate from the security deposit. This is not standard practice and should be negotiated.
• Cheque Bank Charges: If paying rent by post-dated cheques, your bank may charge AED 25–50 per cheque for issuance.