Introduction
Dubai service charges depend on the nature of the property and the level of services that are offered under the service agreement, and are levied on all kinds of properties in Dubai, whether they are residential or commercial, villas or apartments.
Dubai Land Department provides a pre-defined service charge index in Dubai which allows clients and potential buyers of properties to comprehend the authorized and accurate service charges and fees of different developments within the city more clearly.
In conjunction with information on sinking funds and the AC of every project, this calculator of service charges will indicate the minimum and maximum fee of different areas within Dubai.
What Are Dubai Service Charges?
- Service Charges are periodic payments for the following areas:
- Security Services: Nearly all developments and upscale communities in Dubai have 24-hour security, which is covered in the service charge.
- Building maintenance involves the operation and maintenance of the electrical and plumbing systems of the building, along with the overall building and components.
- Facilities management involves the handling of amenities provided by a given development or society, like kids’ play areas, a gym, and pools.
- Cleaning and Landscaping: Maintenance of community spaces, gardens, and parks, along with frequent cleaning of common areas like hallways and lobbies in the developments, is included in the service charges.
- Utilities for Common Areas: Water, air conditioning, and lighting are included in service prices.
Nearly all societies and communities in Dubai share a common facility or amenity that their residents utilize. On top of that, every community offers cleaning services to keep the buildings and the surrounding environment clean and habitable. Whether it’s paying the janitors who sweep the community or paying for materials used for maintenance, property owners have to chip in for the service fee when they utilize the amenities.
Purpose of service charge
- Maintain a clean, useful, and safe living environment for all tenants.
- Comply with Dubai RERA‘s guidance of service charges. Late payment or failure to pay the charges could mean fines and other legal actions.
- Keep a property’s and a community’s value, because well-maintained properties can fetch more when sold on the market.
Advice for controlling and allocating funds for service fees
- Utilizing property management software will be more effective and less expensive than hiring an individual.
- Collaborating with property managers who are able to identify areas of greater expense and institute remedies to increase the property’s ROI.
- Budget management entails monitoring and eradicating any unnecessary expenses that are adding to the community’s service charges.
- Performing regular checks on the property to prevent excessive damage from arising, which would require extra cash.
- Buying superior equipment for the community, e.g., HVAC systems, thermostats, and other pieces of equipment that will last longer and be less likely to break down.
- Establishing sustainable substitutes, e.g., replacing common light bulbs with LEDs, in order to cut utility bills.
Rules and Regulations of Service Charges in Dubai
For the sake of transparency and fairness, service charges in Dubai are regulated by some major laws and regulations:
Law No. 6 of 2019 (Jointly held Property Law): This law provides a framework for managing jointly held properties, including the calculation and collection of service charges.
RERA Service Charge and Oqood Index: RERA lays down regulations for the rates of service charges and issues an index on its website as a benchmark for property owners.
Oqood System: RERA mandates that this system register and hold service charge deals between owners and management companies.
Dubai service charges are determined by the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA). The charges differ on various parameters, some of which are as follows:
• Property Type: Service charges differ for villas, flats, and commercial spaces. Owners of apartments usually shell out extra due to shared facilities like elevators and swimming pools.
• Location: Prime districts like Downtown Dubai, Palm Jumeirah, and Dubai Marina pay higher fees than suburban areas like Dubai South, Dubai Hills, and Jumeirah Village Circle (JVC).
• Facilities and Amenities: Luxury facilities like gyms, pools, and concierge services usually come at a premium price.
• Property Management and Developer: Certain developers charge higher service fees based on the level of maintenance and management services provided.
The most costly places to live in Dubai are Pearl Jumeirah, City Walk, and Jumeirah Bay Island. Due to this, they have more expensive service rates compared to other locations.
Deira, International City, Discovery Gardens, and Al Barsha are some of the most affordable locations in Dubai.
No, they don’t.
Marhaba services encompass airport-related services.
Which encompasses airport pick ups, drop offs, loading of baggage and others.
