The Real Cost of Renting in Dubai: DEWA, District Cooling & Chiller-Free Apartments

Renting a home in Dubai isn’t just about signing a contract and paying rent. There are extra costs and steps many first-time renters don’t expect—especially when it comes to utilities like DEWA and district cooling. If you’ve ever wondered what "chiller-free" really means or why you might be paying two separate utility bills, this quick guide is for you.

The basics: What you're paying for when you rent

Let’s say you found the perfect 1-bedroom apartment in Dubai Marina for AED 85,000 per year. You love the layout, location, and view. What comes next?

Upfront costs to expect:

Rent: AED 85,000 per year (usually paid in 1 to 4 cheques)
Security deposit: 5% of the annual rent (AED 4,250)
Agency fee: Another 5% of rent (AED 4,250)
Ejari registration: AED 220 (mandatory to register your tenancy with Dubai Land Department)

Once those are covered, you need to get your utilities in order.

Step 1: Set up DEWA (water & electricity)

DEWA stands for Dubai Electricity & Water Authority. This covers your basic water and electricity needs (lights, outlets, etc.).

To activate DEWA:

Register on or through the Dubai REST app
Submit your Ejari certificate
Pay a refundable deposit of AED 2,000 (for apartments)
Pay a connection fee of AED 130

Important: DEWA does not include air conditioning in many modern buildings.

Note for villa renters: In most villas, the AC is powered by traditional split or central units—so your AC usage is included in your DEWA bill. However, in some newer villa communities, district cooling might still be used (though it's rare). Always ask whether the villa is cooled via DEWA or district cooling.

Step 2: Understand district cooling (AC)

A lot of new buildings in Dubai use a centralized cooling system called district cooling. Instead of each apartment having its own AC unit, chilled water is pumped through the building to cool it.

This is handled by separate providers, the most common ones being:

Empower
Emicool
Tabreed

If your apartment is not "chiller-free," you are responsible for:

Setting up an account with the district cooling provider
Paying a refundable deposit (AED 2,000 to AED 2,500)
Paying a connection or admin fee (AED 100–200)
Receiving monthly cooling bills (typically AED 300 to AED 600 depending on usage)

What does "chiller-free" mean?

If a listing says the unit is chiller-free, that’s a big win. It means the landlord pays for the AC (district cooling), and you don’t have to set up or pay anything monthly for cooling.

So, in short:

If the apartment is not chiller-free, you pay both DEWA and the cooling provider
If the apartment is chiller-free, you only pay DEWA (and your rent)

Always ask: "Is this apartment chiller-free or not?" before signing.

Real life example: Renting a 1-bedroom in Dubai Marina

Rent: AED 85,000 (4 cheques)
Security deposit: AED 4,250
Agency fee: AED 4,250
Ejari: AED 220
DEWA deposit + connection: AED 2,130
Empower (cooling) deposit + connection: AED 2,500 (if not chiller-free)

If the apartment is chiller-free, you skip that last AED 2,500 entirely.

Ongoing monthly costs would look like:

DEWA bill: AED 250–400/month depending on your usage
District cooling: AED 300–600/month (only if not chiller-free)

Quick checklist before you sign a lease:

Confirm if the unit is chiller-free
Ask how many cheques are accepted for rent
Clarify the agency fee in advance
Ensure the Ejari is registered to activate DEWA
Understand who covers maintenance and repairs
Ask whether the AC is covered under DEWA or a separate district cooling provider (especially in villas)

Renting in Dubai can be a smooth experience when you're prepared, and understanding the extra costs — like DEWA and district cooling — will save you from unexpected bills. Always ask the right questions before signing, and don’t hesitate to reach out for guidance. Happy renting!