Real estate guide
Service Charges in Dubai Explained
What service charges are in Dubai, how they are calculated per square foot, how to check them in the RERA service charge index and what they cover.
Service charges are the annual fees owners pay to maintain and run a building or community. They vary widely between developments, so they are one of the most important numbers to check before you buy.
What do service charges cover?
- Cleaning, security and concierge services
- Maintenance of lifts, pools, gyms, landscaping and common areas
- Building insurance
- Utilities for common areas
- Contributions to a reserve fund for major future repairs
- Owners’ association management fees
How are they calculated?
Service charges are set as a rate per square foot of the property’s area and approved each year through the Real Estate Regulatory Agency (RERA). Owners’ associations publish their budgets through the Mollak system, and the approved rates for each project can be checked in the DLD’s service charge index on the Dubai Land Department website or the Dubai REST app.
For example, an 800 sq ft apartment in a building charged at AED 18 per sq ft would pay AED 14,400 a year. Charges are usually invoiced quarterly or twice a year.
Why service charges differ
Buildings with extensive amenities, such as large pools, gyms, concierge services and beach access, typically charge more. Older buildings may have higher maintenance costs, while new buildings may have lower charges at first that rise as warranties expire. Chiller or district cooling fees are often charged separately and should be added to your comparison.
Service charges and your returns
For investors, service charges directly reduce net rental yield. A property with a slightly higher rent but much higher charges may produce a lower return. Always calculate net yield, as explained in our rental yields guide.
Who pays: owner or tenant?
Service charges are the owner’s responsibility. Tenants pay rent and their own utilities, but not service charges, unless a specific arrangement says otherwise.
Before you buy
- Check the current approved rate in the service charge index
- Ask for a statement showing no outstanding charges; the developer NOC for transfer requires this
- Ask whether cooling is charged separately
- Review recent changes in the charge and any planned major works
This guide is general information, not legal or financial advice. Fees, thresholds and regulations change, so please confirm current requirements with our team or the relevant authority before you commit.
FAQs
Frequently asked questions
Who pays service charges in Dubai?
The property owner pays service charges. Tenants do not normally pay them.
How can I check the service charges for a building?
Use the service charge index on the Dubai Land Department website or the Dubai REST app.
What happens if service charges are not paid?
The developer will not issue the NOC needed to sell, and the owners’ association can take legal steps to recover the debt.
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