How service charges work
Every owner in a Dubai building or community pays a yearly service charge for shared upkeep. The owners association sets a budget, RERA approves it, and it is divided by the total floor area to give a rate per square foot. Your charge is that rate times the size of your unit.
Typical ranges
| Property type | Typical rate per sq ft |
|---|---|
| Villa and townhouse communities | AED 2 to 6 |
| Mid-market apartment towers | AED 11 to 18 |
| Premium towers with full amenities | AED 18 to 28 |
| Luxury and branded residences | AED 28 and above |
These ranges are rough guides. Rates vary a lot between buildings in the same area, so always look up the approved figure for the exact project before you buy.
Worked example
A 1,100 sq ft apartment at AED 16 per sq ft costs AED 17,600 a year in service charges, or about AED 1,467 a month. If it rents for AED 110,000, the charges take 16% of the rent, which lowers the net yield by more than a full percentage point.
Why it matters before you buy
Two similar apartments can have very different running costs. Over ten years, a difference of AED 8 per sq ft on a 1,100 sq ft unit adds up to AED 88,000. Factor service charges into any rental yield or affordability calculation.
Frequently asked questions
How are service charges calculated in Dubai?
They are a rate per square foot set each year by the owners association and approved by RERA, multiplied by your unit's size. You can look up the approved rate for your building in the DLD Service Charge Index.
What do service charges pay for?
Building maintenance, cleaning, security, lifts, pools, gyms, landscaping, insurance and a reserve fund for future repairs. District cooling is often billed separately.
Who pays service charges, landlord or tenant?
The owner. Tenants in Dubai do not pay service charges directly, though landlords factor them into the rent.
Why do some buildings charge so much more?
Luxury towers with concierge, large amenities and high-end finishes cost more to run. Older buildings may also charge more as repair costs rise.