What do service charges cover?

  • Cleaning and maintenance of common areas, lifts, facades and car parks.
  • Security, concierge and access control.
  • Pools, gyms, landscaping and other shared amenities.
  • Building insurance.
  • The owners association management fee.
  • A reserve (sinking) fund for major future repairs — roofs, lifts, facades, plumbing.
  • In some buildings, district cooling consumption is included; in others it is billed separately.

Your own apartment's utilities (electricity, water, internet) are not included.

Who sets service charges?

In Dubai, jointly owned buildings are managed by an owners association through a licensed management company. Each year the management company prepares a budget, which must be approved by RERA and is published in Mollak, the DLD's official service charge system. Owners can review and question the budget at the owners' general assembly.

How much are service charges in Dubai? (indicative 2026 rates)

Area Indicative AED per sq ft per year
Palm Jumeirah ~35
Downtown Dubai ~28
DIFC ~27
JBR ~24
Dubai Marina ~22
Business Bay ~18
Dubai Creek Harbour ~17
Dubai Hills Estate ~16
JLT ~14
Town Square ~13.5
Arjan / Al Barsha South ~12.5
JVC ~12
Dubai South / Expo City ~10
International City ~8

Area averages compiled from published Mollak data by Real Estate Club Dubai (2026). Buildings in the same area can differ by 30–50%, so always check the specific building.

Example: a 1,000 sq ft apartment in a building charging AED 18 per sq ft pays AED 18,000 a year in service charges.

How service charges affect your rental yield

Take an apartment bought for AED 1,600,000 that rents for AED 120,000 a year:

Building A (AED 14/sq ft) Building B (AED 28/sq ft)
Size 1,000 sq ft 1,000 sq ft
Annual service charges AED 14,000 AED 28,000
Rent minus service charges AED 106,000 AED 92,000
Yield after service charges 6.6% 5.8%

Same price, same rent — almost one percentage point difference in yield. Our investment calculator deducts service charges automatically.

How to check a building's service charges

  1. Dubai REST app or the DLD website — search the building to see the approved Mollak rate.
  2. Ask the seller or developer for the last 2–3 years of service charge statements. Large jumps year on year deserve a question.
  3. Check the reserve fund. A well-funded sinking fund means fewer surprise special charges later.
  4. Compare with neighbouring buildings of similar age and quality.
  5. Ask what is included — especially whether cooling is in the service charge or billed separately.

For off-plan property, the developer gives an estimated service charge; the final rate is set after handover and approved by RERA.

Who pays: owner or tenant?

In Dubai, the owner pays service charges, not the tenant, unless the tenancy agreement says otherwise. Tenants usually pay their own utilities.

What if service charges are not paid?

The owners association can charge late fees, restrict access to some amenities and take legal action. Unpaid service charges must be cleared before a property can be transferred to a new owner — buyers should always ask for the developer/owners association clearance.

Compare buildings before you buy

An SPI Dubai advisor can compare service charges, rents and net yields for buildings you are considering. Ask for a comparison — we usually reply within 10 minutes.

This article is for general information only. Service charge rates change every year; always check the current approved rate for the specific building.

Sources: Dubai Land Department / RERA Mollak service charge system; Real Estate Club Dubai, "Dubai service charges explained" (2026).