2025 marked an altogether different parking landscape in the city: the new parking fees in Dubai, introduced in April, replaced flat hourly rates with demand-based pricing that varies by location, time of day, and zone. A move such as this saw average paid parking fees rise 51 per cent to an average of AED 3.03/hour. It can cost up to AED 6 per hour for the first hour, especially in premium areas such as Downtown, Jumeirah, Business Bay, and Deira, during peak times from 8:00 to 10:00 am and 4:00 to 8:00 pm. This blog is all you need to know about the new change and how to cope with it.
Although these rates stay the same during off-peak hours, and parking remains free during nights, on Sundays, and during public holidays, the shift has forced many residents toward a seasonal parking card system that RTA is reviewing to balance out costs. For Dubai commuters, residents, and businesses, it means reassessing how and when you park, while understanding how new parking fees in Dubai affects your daily life.
Why Dubai Parking Costs Shot Up
In April 2025, the Roads and Transport Authority of Dubai, in coordination with Parkin Company PJSC, introduced a variable tariff policy regarding parking. This reshaped the landscape of parking fees in Dubai, changing significantly.
What that means: The cost of parking is not one steady rate, but it's variable. There are three major influences:
Place: This new classification has marked some of the parking spaces as "Premium", meaning the high-demand spaces near commercial centres or public transport.
Time of Day: More expensive during peak hours between 8-10 am, and between 4-8 pm.
The type of parking space, whether it is a standard public space or a premium facility, has its bearing on the tariff.
But according to Parkin's Q3 2025 report, the effect has been significant: the weighted average hourly rate has gone from AED 2.01 to AED 3.03, or a 51% increase from the same quarter in 2024. These changes in Dubai parking fees influence driver behaviour and daily budgets alike.
How the Zones Work - Premium vs. Standard
To make sense of the new system, you first need to know what the "zones" are: Dubai public parking is divided broadly into Zones A, B, C and D. With the change in tariff, each of these now has a premium ("P") counterpart: AP, BP, CP, DP.
Areas of high density and high traffic flow, such as Business Bay, Downtown Dubai, and Jumeirah, are the prime areas, apart from those around metro stations that see the highest demand.
Standard areas: Those that do not have much traffic or are near transportation centres.
Charges for the premium zones are AED 6 per hour from 8–10 am and 4–8 pm.
The off-peak hours apply to older rates, meaning you actually might pay the same, provided you park at off-peak times.
Most importantly, parking is still free overnight between 10 pm and 8 am on Sundays and public holidays.
Impact on Parking Behaviour
Apart from reflecting the Dubai parking free rates, changes have further altered the trend of parking in Dubai.
Surge in Seasonal Parking
One of the largest responses has been a dramatic increase in the sale of seasonal parking cards. According to Parkin, sales leapt 126 per cent to a record 81,000 cards. Why? Many drivers use the seasonal cards as a hedge against higher daily variable rates.
This, however, has not escaped the attention of the RTA, which commissioned a third-party review of the seasonal card system. It's supposed to reconsider pricing, with perhaps a better balance between the seasonal passes and the new daily variable model.
Revenue and Use Patterns
For one of its co-founders, Parkin, the transition has already begun to pay dividends:
Revenue per parking slot reached AED 706, and peak-hour earnings now constitute more than half of the total parking revenue. That would mean demand is strong at even higher rates, especially in peak hours within premium zones. This aligns with the direction the new parking fees in Dubai aim for, turnover and controlled congestion.
What Drivers Should Know: Practical Takeaways
Driving or parking frequently in Dubai? Well, this is how you adjust to the new reality:
For cheaper fares, avoid peak hours: 8–10 am, 4–8 pm. Consider shifting errands or meetings to off-peak times when the cost is lower and does not change.
If you aren't parking in highly demanded spots all the time, then reassess whether or not you really need the seasonal card or if it is worth parking daily. If you have more flexible parking needs, the parking might be cheaper in a standard zone or even off-peak. Get to know about the UAE parking zones for easier understanding.
- The Developer vs. Public Parking
If your parking spot is in a private facility, about 35-40 per cent of the developer spaces are already under variable tariffs. Watch this space for seasonal card updates from RTA. Since this review is still in process, this "price gap" between the seasonal pass and the daily tariff may be subject to change. Periodically review your options before renewing your pass.
Why This Change Matters: The Bigger Picture
This is not all about making Dubai more expensive to park; this is about smart traffic management. Demand-based pricing aims to deter long-term parkers from Dubai's premium and crowded areas. It would mean more turnover, thus making room for short-term users.
Peak pricing spreads out demand, potentially easing congestion during the most crowded hours. In reassessing seasonal passes, RTA would seem to weigh the call for fairness against revenues-not to cash in on it but to optimise how parking spaces are used. It's also part of a larger trend: dynamic pricing of public services to manage demand, rather than purely as a way to raise revenue, is on the rise in cities worldwide.
To Conclude,
At Beno, we understand precisely how these changes can impact your daily life, especially if you have to commute, run errands, or deal with logistics as part of your work. Whether you're a resident juggling a seasonal card or even a business factoring in employee parking, Beno's car rental take you through it all. We at Beno help you navigate not just commuting but its cost implications-smarter transport-smarter living.
FAQs
- When did the variable parking tariff start in Dubai?
The new regime kicked off on 4 April 2025 and covered all the public parking zones and part of the developer-controlled parking.
- What are the peak hours of the new tariff?
Peak pricing kicks in from 8 am to 10 am, 4 pm to 8 pm, and excludes Sundays and public holidays.
- Which areas are costlier under the new policy?
The rates are costlier in high-demand "Premium" areas. It includes Downtown Dubai, Business Bay, Jumeirah and places near metro stations, especially during peak hours.
- Does overnight or Sunday parking remain free?
Yes. "Parking remains free from 10 pm to 8 am and on Sundays and public holidays."
- Are multi-storey car parks affected?
No change there, MSCPs remain at AED 5/hour, with a cap at AED 40 if you park more than 8 hours in 24 hours.
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