The Dubai Land Department (DLD) and Dubai Holding Community Management came together to introduce an approved first-time multi-year fixed service-fee structure for the Palm Jumeirah Master Community. Henceforth, jointly owned properties in Dubai will have the ability to obtain approval for a three-year fixed service fees.
This new three-year service-fee mechanism allows joint property owners a chance to improve their property ownership experience in Dubai. Going forth, the new framework will allow community management companies to submit and obtain approval for a three-year budget through the Mollak digital system.
In addition, companies can choose to continue using the one-year budgeting cycle if they prefer. This initiative aims to stabilise service fees and improve long-term financial planning. By enabling management entities to enter into multi-year operational contracts with service providers, property owners and investors can expect clearer cost expectations.
Move to Stabilize Service Fees
In collaboration with Dubai Holding Community Management, DLD confirmed that the Palm Jumeirah Master community will become the first project to have its budget approved under the advanced model. Eng. Abdullah Ahmed Al Shehhi said the mechanism is available for all community management companies across Dubai.
In detail, the initiative supports broader upgrades to the Mollak system Dubai, including enhanced budget-review processes, stronger digital integration, and a unified financial database set to improve accuracy and standardisation. The department said authentication procedures and improved documentation are expected to reduce processing time and strengthen oversight.
Meanwhile, the Jointly Owned Property Management Department described the adoption as a “strategic step to advance Dubai’s community-management framework”. According to the department, the move aims to support long-term operational planning, strengthen transparency, and reinforce stability in the real estate sector by giving management companies more reliable data for operational and financial decision-making.
Why Palm Jumeirah?
With Palm Jumeirah leading the initiative, the emirate can gauge the success of the initiative thanks to the island’s scale, complexity, and high level of community management. As one of the city’s top premium master communities, Palm Jumeirah makes the perfect testing-ground for the new multi-year service fee mechanism in Dubai.
This Palm Jumeirah service fees pilot, being implemented with the support of Dubai Holding Community Management, ensures transparency and compliance throughout the process. Benefits of choosing this location include predictable costs for three years, better long-term management from a fixed budget, greater transparent governance, and stronger buyer and investor confidence.
How To Get the Three-Year Approval
Here are four simple steps you can take to get your approval for a three-year fixed service fee.
- Get your community manager to submit a detailed three-year operational budget through service-Mollak.
- The DLD then evaluates costs, supplier contracts, service standards, and reserves.
- Once approved, the service fees remain fixed for the full three-year period, unless exceptional regulatory changes are needed.
Of course, communities are free to choose and continue with the same standard annual approval system if they wish. This dual-option model brings more flexibility to the system whilst also encouraging communities to adopt long-term planning.
Impact on Dubai’s Real Estate Market
So far, Dubai has been taking many leading steps to raise industry standards, deliver greater transparency, and improve investor protection. By introducing this new mechanism, multi-year service fees are expected to reduce annual financial uncertainty for homeowners, improve operational efficiency for community management, increase investor trust in freehold communities, and support sustainable maintenance and infrastructure planning.
Over time, this system may influence service fee structuring across the wider UAE and possibly the region. Francis Giani, Chief Community Management Officer at Dubai Holding Community Management, says:
“This milestone will significantly enhance our strategic planning capabilities, allowing us to approach future initiatives with greater foresight and clarity. Anchored in this renewed framework, we are committed to implementing meaningful, long-term enhancements that enrich the community experience and deliver enduring value to our residents at the Palm Jumeirah and beyond.”
All in all, Dubai is experiencing a rapid growth in property demand. In turn, communities are being developed at a faster pace and the city recognized the need for long-term frameworks to maintain operational quality high while keeping homeowners protected from erratic changes in fees, and the three-year fixed model provides exactly that, a balanced, future-ready system to support both investors and residents.
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