Dubai Land Department has introduced a new mechanism to freeze service fees for jointly owned properties for three consecutive years to enhance stability and transparency across Dubai communities.

In its first phase, the new mechanism is implemented in collaboration with Dubai Holding Community Management in the Palm Jumeirah master community. The mechanism will be expanded to include other communities in the upcoming phases.

The new mechanism enables the management companies of jointly owned properties (JOPs) to submit and secure approval for a three-year service fees budget via the ‘Mollak’ system, while also maintaining the option for entities that wish to continue adopting a one-year budgeting model.

It aims to stabilise service fees and enhance the efficiency of long-term financial planning by enabling management companies to enter into three-year operational contracts with service providers. This approach enhances clarity and certainty for owners and investors, while contributing to greater transparency in the management of buildings and communities.

This adoption marks a strategic milestone led by the Jointly Owned Property Management Department to advance the ‘Mollak’ system and usher in a more mature phase of community management.

It strengthens market stability and transparency while enhancing the resilience and competitiveness of Dubai’s real estate sector. This development enables DLD’s partners, the community management companies to manage their financial and operational obligations across jointly owned properties with greater efficiency, improved planning confidence, and more sustainable decision-making supported by accurate and reliable data.

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Source: Khaleej Times 

12th December, 2025