Dubai Parking Fees Surge in 2025

Dubai Parking Fees: Average Hourly Fee Surges by 51% in Q3 2025

The variable parking fee structure introduced in April 2025 has dramatically reshaped Dubai's public parking habits, and the first data now supports expectations: the city's pay-to-park hourly rate has increased by 51% compared to the same period last year.

According to Parking Company PJSC, Dubai's largest public parking service provider, the weighted average hourly fee rose to 3.03 dirhams during July to September 2025, up from 2.01 dirhams in the third quarter of 2024. This significant increase largely results from the introduction of the variable pricing system, which sets prices based on demand, location, and time of day.

Zones, Fees, and Time Intervals – What Does Variable Pricing Mean in Practice?

The new parking structure has been in effect since April 4, 2025, considering three key factors: where you park, when you park, and the demand. Premium parking areas have been established in the busiest regions, like Downtown Dubai, Business Bay, Deira, and Jumeirah, where peak hour fees reach up to 6 dirhams for the first hour. The peak hours are from 8 to 10 am and 4 to 8 pm.

Conversely, prices have not changed during less busy hours, and parking remains free at night (10:00 pm to 8:00 am) and on Sundays and official holidays.

Zone Differences

According to Parkin's data, the most significant fee increases were observed in Zones B and D, while Zones A and C were less affected. This is due to a weighted calculation system based on zone utilization, location, and the number of parking spaces. The fee slightly decreased between the second and third quarters (from 3.04 to 3.03 dirhams), partly due to the opening of new parking spaces.

Season Cards – Clever Solution or Temporary Loophole?

Alongside the variable pricing introduction, motorists have been increasingly switching to using seasonal parking cards. These are prepaid periodic permits that eliminate the need for daily payment. However, the price of seasonal cards has not changed with the new system, allowing many to exploit the price difference advantage. Parkin explains that this "favorable price difference" also accounts for the 126% increase in seasonal card sales – reaching 81,000 units, a record figure.

The phenomenon has also caught the attention of Dubai's Transport Authority (RTA), which has initiated an independent external review of the seasonal card pricing mechanism. Based on the review's findings, the RTA may propose adjusting card prices to align with the variable pricing introduced in April 2025.

Revenue Records and Market Growth

Parkin's third-quarter report highlights not only fee increases but also significant business successes. The company’s net profit reached 157 million dirhams, a 50% increase compared to the same period last year. Public parking revenue grew by 30%, reaching 135 million dirhams.

Average revenue per parking space increased by 21% to 706 dirhams, while peak hour revenue hit 74.4 million dirhams, making up 55% of total revenue.

What to Expect in the Future?

The goal of the variable pricing was to encourage better traffic distribution and make the parking system more efficient by aligning with demand. The initial data suggests the system is working: prices dynamically adjust to real demands, regulating the use of parking spaces in peak areas with higher fees.

However, seasonal cards still offer a significant value for regular parkers—at least until the RTA reviews their pricing. Motorists should stay informed of developments, as new changes are expected in the coming months.

Dubai’s public parking system is thus evolving: demand-based, dynamic pricing is becoming dominant, which may lead to higher costs but will contribute to more balanced traffic flow, shorter parking space search times, and a more sustainable urban transportation system in the long run.

(Source: Based on a press release by Parking Company PJSC)