Buying & Legal

How Much Are Service Charges?

Dubai service charges typically run AED 10–25 per square foot annually for apartments, AED 4–10 per square foot for townhouses and villas, and AED 25–40 per square foot for branded residences — always verify the building's 3-year Mollak history before purchase.

Key investment metrics

The numbers that matter most for this question — at a glance.

Yield5–9%
Property Tax0%
Entry BudgetAED 10–25/sqft
Holding PeriodAnnual

Why Dubai Works

  • Charges regulated by RERA via the Mollak system, audited annually
  • Transparent budget vote process with owners committee oversight
  • Cover security, district cooling, utilities, amenities, maintenance and reserve fund

Comparison

Community TypeAED/sqft RangeWhat's Included
Mid-tier apartments10–15Standard amenities
Premium apartments15–25Pool, gym, concierge
Branded residences25–40Hotel-grade services
Townhouses / villas4–10Community amenities only
District cooling (extra)AED 0.5–1.5/RTHVariable

Who Should Invest

  • Investors who underwrite net of all annual charges, not gross yield
  • Buyers verifying 3-year charge history before signing the LOI

Risks to Watch

  • Year-on-year increases possible, subject to RERA approval and budget vote — factor into [[slug:costs|all-in cost planning]]
  • Older buildings can have higher charges due to deferred maintenance catch-up

Strategy

  • Always pull the last 3 years of service charges from RERA Mollak before purchase
  • Net yield should remain above 5% after charges, agency, vacancy and management

FAQ

Can charges go up?

Yes — service charges can increase year-on-year, but only after RERA approval of the new budget and an owners-committee vote. Steep one-off jumps usually reflect deferred maintenance, reserve-fund top-ups or major equipment replacement.

How can I check charges before buying?

Request the building last 3 years of service-charge invoices from the seller or owners association, and cross-check via the RERA Mollak portal which records approved budgets and any disputes.

Are villas cheaper to maintain than apartments?

Community service charges per sqft are lower for villas (see property type comparison) (AED 4–10), but villas have additional private maintenance — gardening, pool service, AC servicing — that adds AED 15–40K annually for a typical 4–5BR villa.