In a move set to bring more clarity and confidence to property owners and investors, the Dubai Land Department (DLD), in collaboration with Dubai Holding Community Management, has approved Dubai’s first-ever three-year fixed service fee structure — with Palm Jumeirah leading the way.
For the first time, jointly owned properties in Dubai can now apply for service fees that remain fixed for three years, offering greater financial stability and long-term planning benefits.
What’s New — and Why It Matters
Until now, service fees were approved annually, often leaving homeowners uncertain about future costs. The new framework allows community management companies to submit a three-year operational budget for approval through the Mollak digital system.
Once approved, service fees remain locked in for the full three-year period, unless exceptional regulatory changes apply. Communities that prefer the traditional one-year approval cycle can still continue with it — making this a flexible, optional upgrade rather than a mandatory shift.
A Big Step Toward Stability
According to DLD, this initiative is designed to:
- Stabilize service fees
- Improve transparency
- Enable better long-term financial planning
- Reduce year-to-year uncertainty for homeowners
By allowing community managers to enter multi-year contracts with service providers, residents and investors can expect clearer cost expectations and more consistent service standards.
Why Palm Jumeirah Was Chosen
Palm Jumeirah has been selected as the pilot community due to its scale, complexity, and premium status. As one of Dubai’s most iconic master communities, it provides the perfect environment to test and refine this advanced model.
The benefits for Palm Jumeirah property owners include:
- Predictable service fees for three years
- Improved long-term community management
- Greater transparency and governance
- Stronger buyer and investor confidence
DLD has confirmed that this mechanism will eventually be available to all community management companies across Dubai, following the Palm Jumeirah rollout.
Enhanced Mollak System Upgrades
This initiative also aligns with broader upgrades to Dubai’s Mollak system, including:
- Improved budget review processes
- Stronger digital integration
- A unified financial database
- Faster approvals and better oversight
These enhancements aim to increase accuracy, standardization, and trust across Dubai’s community management ecosystem.
How Communities Can Apply
The approval process is straightforward:
- Community managers submit a detailed three-year operational budget via Mollak
- DLD reviews costs, supplier contracts, service standards, and reserves
- Once approved, service fees are fixed for the full three-year term
Communities can still opt for annual approvals if preferred, creating a balanced system that supports both short-term flexibility and long-term planning.
What This Means for Dubai’s Property Market
Dubai continues to raise the bar when it comes to transparency, investor protection, and sustainable growth. The introduction of multi-year service fees is expected to:
- Reduce financial uncertainty for homeowners
- Improve operational efficiency for community managers
- Increase investor trust in freehold communities
- Support long-term infrastructure and maintenance planning
Over time, this framework could influence service fee structuring across the wider UAE — and potentially the region.
As Francis Giani, Chief Community Management Officer at Dubai Holding Community Management, notes:
“This milestone enhances our strategic planning capabilities and allows us to deliver long-term improvements that enrich community experiences and create lasting value.”
Final Thoughts
With property demand continuing to rise and communities expanding rapidly, Dubai has recognised the need for future-ready frameworks that protect homeowners while maintaining high operational standards. The three-year fixed service fee model offers exactly that — a thoughtful balance between stability, transparency, and flexibility.
For more insights and expert real estate advisory services, feel free to connect with Luxe Haven Real Estate.
