Dubai’s real estate sector is taking steps toward greater financial predictability with a new initiative aimed at stabilizing service fees in key residential areas. The Dubai Land Department and Dubai Holding asset Management have partnered to implement a first-of-its-kind system allowing for three-year service fee budgets on jointly owned properties, beginning with the Palm Jumeirah Main Community. This move is intended to increase openness and long-term financial planning for both property owners and management companies, offering a departure from conventional annual budgeting cycles.
Dubai’s Land Department, in collaboration with Dubai Holding Asset Management, has implemented a first-of-its-kind initiative to fix service fees for the Palm Jumeirah Main Community for a three-year period. The move aims to bring greater financial stability and transparency to the popular residential area.
According to a statement released yesterday, the new system allows property management companies with jointly owned properties to submit and approve service fee budgets for consecutive three-year periods through the “Mulak” system. Companies preferring annual budgets can still opt for that approach.
Officials say the extended budgeting cycle will support service fee stability and enhance long-term financial planning by enabling management companies to enter into three-year operational contracts with service providers. This is expected to provide greater clarity and certainty for property owners and investors, while also increasing transparency in building and community management.
The initiative represents a strategic step forward in developing the “Mulak” system and marks a transition to a more mature phase of community management, according to the Land Department. It is intended to bolster market stability, transparency, and the competitiveness of Dubai’s real estate sector.
This development will empower partner companies to manage their financial and operational obligations in jointly owned projects more efficiently, allowing for more confident planning and sustainable decision-making based on accurate and reliable data.
Improvements to the “Mulak” system also include enhanced digital data integration and streamlined documentation and authentication procedures, reducing time and effort while improving monitoring, oversight, and the quality of services provided to all stakeholders in the real estate sector.
Eng. Abdullah Ahmed Al Shehhi, CEO of the Real Estate Regulatory Agency (RERA) at Dubai Land Department, stated that the new extended budgeting mechanism was first applied in the Palm Jumeirah Main Community, making it the first project to have its budget approved under this advanced model.
“All property management companies in Dubai can choose this new mechanism, which supports long-term financial planning and enhances service fee stability,” Al Shehhi added. “This step is part of RERA’s efforts to enhance transparency, improve community management efficiency, and enhance the quality of services provided to residents, owners, and investors in the emirate.”
The announcement followed a collaborative workshop with Dubai Holding Asset Management, where key updates supporting multi-year financial planning and the development of community management mechanisms in the emirate were reviewed.
Francis Giani, CEO of Dubai Holding Asset Management, highlighted the company’s achievements within its residential portfolio, stating, “This achievement has significantly enhanced our strategic planning capabilities, allowing us to approach future initiatives with greater insight and clarity.”
“Based on this new approach, we are committed to implementing substantial and long-term improvements that enrich the community experience and deliver sustainable value to our residents in Palm Jumeirah and across our communities in Dubai,” Giani said.
Dubai Land Department emphasized that this move reaffirms its commitment to developing modern systems that meet the needs of the sector, enhance stakeholder confidence, and support Dubai’s vision of providing world-class living experiences through a more efficient and innovative real estate ecosystem.
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