What You Need to Know About 'Chiller Free' Living in Dubai

In Dubai, air conditioning is not a luxury but a necessity. Therefore, it is useful to understand what "chiller free" actually means when you are renting or buying a property. This term is frequently seen in advertisements for apartments and studios, especially in popular areas like Dubai Marina or Palm Jumeirah. But what does it entail and what are the benefits?

A chiller is a central installation that circulates chilled water through a building to cool the apartments. Normally, you pay for two things: the electricity for your own air conditioning units via DEWA (Dubai Electricity & Water Authority), and the cost of the central chiller installation via a separate bill from a district cooling company, such as Empower.

If a property is chiller free, it means the landlord or the owners' association (OA) covers the chiller costs through the service charges. As a tenant, you then only pay the DEWA bill for water, electricity, and a small amount for air conditioning. This can make a significant difference.

For example, in a chiller free studio, you typically pay around 150 to 200 AED per month for DEWA. In larger properties, this can rise to 700 AED. Without chiller free, this amount can easily double during the summer.

What Should Tenants and Buyers Look Out For?

It is important to carefully check that this is explicitly stated in your tenancy contract. Some buildings have transitioned over time from being chiller free to a system where the tenant suddenly becomes responsible for the bill. Ensure it is clearly documented in writing to avoid any surprises.

This issue is also relevant for buyers. For purchased apartments, chiller costs are usually included in the annual service charges, unless the building operates on a district cooling system. In that case, as an owner, you receive a separate bill from Empower or a similar company. These costs can be high, even with low consumption, due to fixed charges.

In summary, chiller free is primarily an advantage for tenants, as it can substantially reduce your monthly outgoings. For buyers, it remains an important point to consider when choosing a building.