Table of Contents
A cost that many people don’t expect when they’re ready to invest in Dubai’s real estate market is service charges. These recurring fees can significantly impact your investment returns, yet many buyers or investors ignore them during property evaluations.
Therefore fore this blog will help understand apartment service charges. Dubai is important because it helps you budget accurately and avoid any surprises down the road.
What Is a Service Charge?
A service charge is a yearly fee that building or community property owners pay to keep common areas and facilities in good shape. This is your small part in keeping the pool clean, the gym tools in working order, and the lobby spotless.
These fees are mandatory for all apartment owners in Dubai and are collected by either the Owners Association or the developer managing the property. The money covers everything from cleaning hallways to paying security staff and maintaining elevators.
Dubai properties often come with impressive amenities, rooftop pools, state-of-the-art fitness centers, children’s play areas, and 24-hour concierge services. Someone needs to maintain all these facilities, and that’s exactly what your service charge pays for.
Breaking Down Service Charge Components
Your apartment service charges in Dubai typically cover a range of services and utilities. Here’s where your money actually goes:
- Building Maintenance and Operations
- Security and Safety
- Utilities for Shared Spaces
- Landscaping and Grounds
- Waste Management and Pest Control
- Reserve Fund Contributions
How Service Charge Is Calculated
The calculation method for service charges in Dubai is straightforward but varies based on your property’s size and amenities.
Your Annual Service Charge = Rate per Square Foot × Your Apartment Size
For example, if you own a 900 square foot apartment and the service charge rate is AED 18 per square foot, you’ll pay AED 16,200 annually (900 × 18 = 16,200).
The per-square-foot rate isn’t random, it’s determined by the building’s total operating costs divided among all unit owners. A building with more amenities will have higher operating costs, which translates to higher per-square-foot rates
Current Service Charge Rates Across Dubai
| Property Type | Average Service Charges (AED/sq.ft.) |
|---|---|
|
Standard Apartments |
10 – 18 AED/sq.ft.
|
|
Luxury Apartments |
20 – 35 AED/sq.ft.
|
|
Villas |
3 – 8 AED/sq.ft. |
|
Townhouses |
4 – 10 AED/sq.ft.
|
|
Waterfront Communities |
20 – 40 AED/sq.ft. |
Need a More information About It?
Our agents will help you explore premium options tailored to your lifestyle, location preferences, and investment goals.
Who Controls Service Charges in Dubai?
Apartment service charges in Dubai are controlled by the Real Estate Regulatory Agency (RERA), which is part of the Dubai Land Department. This is done to protect property owners from having to pay too much in fees.
The Mollak System was created by RERA. It is an online system where all budgets for service charges must be registered and accepted. This method makes things clear in a place where there used to be a lot of disagreements and confusion.
Every Owners Association must submit its annual budget to RERA, showing exactly how it plans to spend service charge funds. RERA reviews these budgets to ensure they’re reasonable and justified. Property owners can access this information through the Mollak portal to see exactly what they’re paying for.
This regulatory framework prevents developers or management companies from arbitrarily increasing service charges without justification. It also gives property owners a clear avenue for complaints if they believe they’re being overcharged.
Checking Your Property's Service Charges
To safeguard your investment, check service charges,
The Mollak System:
Log in to the Mollak platform using your Emirates ID. Enter your property details to view the registered service charge rate and approved budget breakdown. This is your most trusted source for information.
Ask Your Real Estate Agent:
If you have hired experienced agents like you and house properties in Dubai who work with buyers and sellers can give you an idea of how much the service charge will be. For every post, they should have this information easily found.
Contact the Developer or Management Company:
Request a detailed service charge statement. Developers with a good reputation will give full breakdowns of how they figure out prices and what services they cover.
Can You Challenge Service Charges?
File a Complaint with RERA:
If you think that service fees are too high or not fair, you can file a written complaint with RERA. They are going to look into whether the charges are legal.
Join the Owners Association Board:
You can run for a seat on the Owners Association board, which will give you direct control over the budget and choices about service fees.
Collective Action:
If more than one owner has a problem, they can bring it up at the yearly general meeting, which is where budgets are talked about and decided upon.
Consequences of Non-Payment
Action in court:
If you don’t pay, you may have to go to court. The Owners Association can bring lawsuits against owners who don’t pay their dues. If you’re found guilty, you’ll have to pay fines and court fees.
Problems with selling a house:
You’ll need a No Objection Certificate (NOC) from the Owners Association to sell your home. They won’t issue this if you have outstanding service charges, effectively blocking your sale until you pay.
Penalties:
Late fees and interest charges accumulate on unpaid service charges, making the debt grow larger over time.
Final Thoughts
In Dubai, you can’t avoid service charges if you own property, but they don’t have to be a source of stress or confusion. With RERA’s regulatory framework and the Mollak system providing transparency.
The key is treating service charges as what they are: an investment in your property’s long-term value and livability. Well-maintained buildings attract better tenants, command higher rents, and appreciate more reliably than neglected properties.
Whether you’re purchasing your first apartment in Business Bay or adding another villa to your portfolio in Arabian Ranches, including service charges in your decision-making process assures that you’re making a long-term and lucrative real estate investment in Dubai.
Frequently Asked Questions
You can verify your service charges through the Mollak System, where all service charge budgets must be registered with RERA. Log in with your Emirates ID to see the approved budget breakdown for your property. You can also compare your rate with similar buildings in your area. If your charges seem excessive, you have the right to request a detailed financial breakdown from your Owners Association.
There are several things that can happen if you don’t pay the service charges. You could be banned from using services like the gym and pool by the management company, and they could also sue you. Most importantly, if you still owe money on service charges, you won’t get a No Objection Certificate (NOC) when you try to sell your home. This means that the sale can’t happen until all the fees are paid.
No, service charges are the legal responsibility of the property owner, not the tenant. Landlords cannot pass these costs directly to tenants as a separate charge.
Join The Discussion