Dubai Property Market Reform: 3-Year Service Fee Freeze for Jointly Owned Properties via Mollak System
Dubai real estate market is really changing for the better. Dubai Land Department is becoming a transparent place when it comes to property. The Dubai Land Department has done something. They have found a way to fix service fees for properties that are owned by people, which are called Jointly Owned Property (JOP) for short, but I will call them jointly owned properties. Dubai service fees can be fixed for up to three years, which’s a big deal. This is the time something like this has happened in Dubai. The Dubai Land Department is helping to make the property scene in Dubai more predictable. This is news for people who own jointly owned properties in Dubai.
Property investment in Dubai in a new way of doing things started with Dubai Holding Community Management in the Palm Jumeirah community. This new approach is meant to help owners and investors understand that money matters better. The Dubai Holding Community Management and the Palm Jumeirah community are working together to make this happen. It is likely that this new approach will be used in residential communities like the Palm Jumeirah community soon. The new approach and the Dubai Holding Community Management are expected to make a difference in many communities.
What Is Changing in Dubai Service Fees for Jointly Owned Properties?
So the service fees that pay for things like taking care of the shared facilities, making sure the place looks secure, elevators and common areas were decided every year. This meant that owners of these places did not know what to expect from one year to the next, with the service fees.
People in communities can now make a budget for Dubai’s Mollak system that will last for three years. They can do this on Dubai’s Mollak platform and get it approved all at the same time. When Dubai’s Mollak system approves it the fee will stay the same for three years unless Dubai’s Mollak system has a change, in the rules. Communities can still pick up the way of getting approval, for one year if that works better for the communities.
Why the 3-Year Fixed Service Fee Model Matters for Dubai Property Investors and Homeowners?
1. Cost Predictability – Game Changer for Homeowners
One of the sources of stress for property owners, especially those people who live in buildings that are managed by a community, is the service fees that you never know about ahead of time. Now because of the three-year model:
You know how much money you will pay for the next three years. The amount you will pay for the three years is clear.
No annual surprises or unexpected spikes
Easier personal financial planning
Having a plan for expenses is really important. It gives people a feeling to know that they have money set aside for things they will need to buy later. This feeling is very valuable for people who are budgeting their money. Budgeting future expenses is a deal, and it helps people feel more secure about their money. For people who are budgeting expenses, knowing that they have enough money is a great thing.
2. Stronger Confidence for Investors
When you think about investing, knowing what your costs will be is a help. Predictable costs make things less risky and easier to understand for people who invest in things like investment. This is because predictable costs for the investment give people an idea of what to expect from the investment.
Figuring out how money you will really get from renting out a place becomes a lot simpler when you make net rental income projections. This is because net rental income projections help you understand how money you will have left over from your rental property after you pay all the expenses. Net rental income projections make it easier to see what is going on with your money. When you have rental income projections, you can make good decisions about your rental property and net rental income projections to give you a clear picture of your financial situation.
Models that show how much money we will make in the long run become more accurate. When we talk about Return On Investment models, they get better at predicting what will happen. This means our Return On Investment models are more reliable.
Properties in communities where you have to pay a fixed amount every month can be really appealing to people who want to rent a place. This is because tenants know how much they must pay and they do not have to worry about extra costs. Properties like these are very attractive to tenants because they like knowing what they are getting into.
Properties in these communities are great, for tenants who want to budget their money and not have any surprises.
For landlords this is really news because it means they can figure out what is going to happen next. This helps landlords make decisions, about how much to charge for rent and what to do with their properties. Landlords can make a plan that really works for them.
3. Better Long-Term Community Management
With longer budgets:
Community managers are able to work out contracts with the service providers. This means community managers and service providers can come to an agreement that works for both of them. Community managers and service providers can then decide on the details of these contracts.
The community managers will talk to the service providers. They will figure out what they want. Community managers and service providers can make a deal that’s good for them. This is something that community managers and service providers can do together.
Making plans for how things will work on a basis is now easier to do. This is because operational planning is becoming more efficient. When we talk about planning, it is the process of making sure everything runs smoothly. Operational planning is very important. It becomes more efficient.
Service standards can get better if we do not have to renegotiate contracts all the time. This way Service standards will be stable, and Service standards will not have to deal with a lot of changes. Service standards are important. We should try to make them better by avoiding constant renegotiation of contracts.
This makes the community a lot nicer. It really improves the overall quality of life for people in the community. It makes life better for everyone in the community.
4. More Transparency & Data Confidence
The Mollak digital system is used to make sure everything is correct. This system has checked the information, and it also keeps track of all the documents. The Mollak digital system even reviews everything carefully. Because of the Mollak system, the fees, services are now calculated and approved in a more careful way.
This makes owners feel better because they know their money is being used in a way and by people who know what they are doing. The owners can feel more confident that their money is being used wisely and professionally.
The way people experience this change is really different. Some people have a hard time with this shift. This shift is a deal for them. They struggle to get used to doing things.
On the hand, some people take this shift in stride. They are able to adapt to the situation very easily. This shift does not bother them all. They just go with the flow. Make the best of it.
It is interesting to see how people experience this shift in ways. This shift can be very tough for some people. It can also be a great opportunity for others. People experience this shift in their unique way, and that is what makes it so fascinating.
For example, some people might feel anxious about this shift. They might worry about what’s going to happen next. This shift can be very scary for them. Other people might feel excited about this shift. They might see it as a chance to try things and learn new skills. This shift is a deal for everyone, and people experience it in their own way.
This is for people who live in a place and the people who use things. Residents and end users are who this is for. Residents and end users can find information here. The information is, for the Residents. End users to know what they need to know.
When you own a home, you know what to expect. That makes life easier. You do not have to worry about costs going up every year. People who own homes can just enjoy where they live because they know how much they have to pay. The costs of owning a home are clear. They stay the same so people who own homes feel more secure about their future.
What This Means for Dubai Real Estate Investment & Rental Yield
The city of Dubai is a place to invest in real estate. People know they can trust Dubai because it is a market. When you own a property in Dubai, you know how much it will cost to take care of it. This makes it easier to know how money you will make from renting it out.
Dubai real estate is a choice for investors because they can plan with more confidence. Investors like Dubai estate because they can make good decisions about how much to spend and how to make money from their properties over time. Dubai real estate market is a place for people who want to invest in rental properties.
Why This Update Strengthens the Dubai Property Market in 2026
The property market in Dubai is changing fast. Things like this show that people want to make sure everything is fair and easy to understand. They also want to plan. The people who buy and rent properties in Dubai, as well as the people who invest money, always look for the property market in Dubai to be fair and easy to understand and to have good plans for the future.
When people live in communities things can get really complicated. That is why systems like the three-year service-fee mechanism are so useful. They help make sure that properties are run in a way that they are easy to manage and that people know what to expect when it comes to money. This makes everyone feel more confident about things. The three-year service fee mechanism is really good at doing this. It helps properties stay efficient, well-managed, and financially predictable, which is great for everyone involved.
So, you are thinking about buying a place in Dubai or maybe selling one. Perhaps you want to invest in Dubai. If you are doing any of these things in Dubai, we should have a conversation about Dubai.
At Coldwell Banker Swap we assist people who want to invest in homes and people who want to buy homes to deal with changes in the market. We help them make choices because of these changes. If you want to buy a home, sell a home, rent a home or get money from your investment, Coldwell Banker Swap is here to help you with every single step of the way, with Coldwell Banker Swap.
Get in touch today for a tailored consultation. Your next property move starts with clarity and confidence.