TryBeforeDubaiService charges, explained
Service charges fund the upkeep of your building and community — and they vary enormously. Here's what they cover, what's typical, and how to check before you commit.
Service charges are annual fees that pay for maintaining shared areas — lobbies, lifts, pools, gyms, security, landscaping, cleaning and a reserve fund for major repairs. They're regulated by the DLD (via the 'Mollak' system for owners' associations) and are a major running cost for owners.
Service charges are billed per square foot per year and multiplied by your unit size. They can range from roughly AED 3–25+ per sq ft depending on the community and the amenities — luxury towers and serviced communities sit at the top.
Owners vs tenants
- Owners pay service charges directly — they're a core part of the cost of holding a property.
- Tenants don't pay them as a line item, but landlords price them into the rent. Either way, a high-charge building tends to mean higher rent.
- Cooling (chiller) is usually separate — see chiller costs.
Rough ranges by community type
| Community type | Indicative AED/sq ft/yr |
|---|---|
| Budget apartment communities | AED 3–8 |
| Mainstream towers (Marina, JLT, Business Bay) | AED 12–20 |
| Premium/branded & serviced buildings | AED 18–30+ |
| Villas (community charges) | Varies — often lower per sq ft, larger area |
Indicative only — actual rates vary by building and year. Check the official figure before buying.
How to check before you commit
- 1Ask for the current rate
Get the exact AED/sq ft figure for the specific building and the year, in writing.
- 2Check it against the DLD index
The DLD publishes approved service-charge rates — verify the building's figure is in line and approved.
- 3Ask about the reserve fund
A healthy reserve fund means major repairs won't trigger sudden special levies.
- 4Model the total
For owners, add service charges and cooling to your annual hold cost in the cost calculator.
Poorly-funded buildings can hit owners with one-off levies for major repairs. Check the building's financial health, not just the headline rate.
Frequently asked
Not directly — owners pay them, but landlords factor the cost into the rent. High-charge buildings usually mean higher rents.
Per square foot per year, multiplied by your unit's size, set per building and approved by the DLD.
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