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“Dubai’s Average Parking Cost Jumps 51% to Dh3.03 per Hour Following Introduction of Variable Tariffs”

“Following the rollout of variable parking tariffs in Dubai, the average cost of parking has surged by 51 percent, reaching Dh3.03 per hour, reflecting a significant increase for drivers across the city.”

Dubai’s average hourly rate for paid parking surged by 51% in the third quarter of 2025 compared to the same period last year, according to Parkin Company PJSC’s market disclosure. The weighted average hourly fee rose to Dh3.03 between July and September 2025, up from Dh2.01, following the launch of the variable parking tariff in April.

Parkin, the city’s largest provider of public parking services, noted that the increase was driven by higher daily parking rates, with zones B and D experiencing the steepest hikes compared to zones A and C. Between the second and third quarters of 2025, the weighted average fee slightly decreased from Dh3.04 to Dh3.03 as additional public parking spaces were introduced.

The weighted average hourly tariff indicates the typical cost of parking across all public zones in Dubai, taking into account both the number of spaces and how frequently they are used in each area. It captures the overall impact of varying rates in standard versus premium zones, as well as differences between peak and off-peak periods.

Starting April 4, 2025, Dubai implemented a variable parking tariff system that adjusts rates according to location, demand, and time of day. High-demand areas such as Downtown Dubai, Business Bay, Deira, and Jumeirah now have premium parking, with peak-hour charges (8am–10am and 4pm–8pm) set at Dh6 for the first hour. Off-peak rates remain unchanged, and parking is free overnight (10pm–8am), on Sundays, and during public holidays, according to Parkin.

Following this change, many drivers opted for seasonal parking cards rather than paying daily fees. Parkin noted that numerous motorists were “taking advantage of the temporary difference between the newly introduced variable daily rates from April 2025 and the still-unadjusted seasonal card prices.”

Arkin reported a 126% increase in seasonal-card sales, reaching 81,000—marking an all-time high—as customers responded positively to what the company described as the “value-for-money provided by unadjusted prices.”

The Roads and Transport Authority (RTA) has engaged an independent reviewer to evaluate the seasonal-card structure and pricing. Following the review, the RTA “may propose changes to address current pricing inconsistencies and better align with the variable pricing introduced earlier this year,” according to the disclosure.

The company achieved a record net profit of Dh157 million in Q3 2025, representing a 50% rise compared with the same period last year.

Revenue from public parking climbed 30% to Dh135 million, driven by higher weighted average hourly rates and an expanded parking network. The company reported that the average revenue per parking spot grew 21% to Dh706, while peak-hour revenue reached Dh74.4 million, accounting for 55% of total public-parking income.

Parkin CEO Eng. Mohamed Abdulla Al Ali highlighted the combination of variable parking tariffs and the significant increase in seasonal-card sales as major contributors to the company’s revenue growth during the quarter.

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