Buying property in Dubai doesn’t end with the transfer of ownership.
Every homeowner must pay annual service charges - a recurring cost that maintains the building or community.

These charges apply to:

• Apartments
• Villas
• Townhouses
• Commercial properties

Understanding them is critical before investing.

1. What Are Service Charges?

Service charges are mandatory recurring fees paid by property owners to cover:

• Cleaning and common area maintenance
• Security services
• Landscaping
• Waste management
• Repairs and general upkeep
• Building management & admin
• Utilities for common areas (including DEWA common consumption)

They ensure the building or community remains operational, safe, and maintained.

2. How Are Service Charges Calculated?

Dubai service charges are calculated per square foot (sq.ft.)

Typical range:

• Dh3 to Dh30+ per sq.ft. annually

Example Calculation

If you own:

• 1,000 sq.ft. apartment
• Service charge = Dh18 per sq.ft.

Annual charge =
1,000 × 18 = Dh18,000 per year

Monthly equivalent = Dh1,500

3. What Determines the Cost?

Service charges are not fixed across Dubai.

They vary based on:

 Property Type

• Villas usually cost more due to gardens, roads, community lighting
• Apartments may be lower if shared across more units

 Amenities

Higher charges if community includes:

• Swimming pools
• Gym facilities
• Concierge
• Private security
• Parks
• Smart access systems

Luxury towers in Downtown or Palm Jumeirah often fall in the Dh25–Dh35 per sq.ft. range

 Developer & Management Standards

Premium developers maintain higher standards - reflected in higher fees.

Communities with strong asset management may have better maintenance but higher budgets.

4. Official Regulation: DLD Service Charge Index

Dubai Land Department (DLD) regulates service charges via:

 Service Charge Index

This ensures:

• Charges are approved
• Budgets are transparent
• Owners are protected from overcharging

The system ensures developers cannot arbitrarily inflate fees.

5. How to Check Service Charges (Step-by-Step)

Method 1: DLD Website

1. Visit DLD Service Charge Index portal

2. Click “Access this service”

3. Enter:
   • Title deed number
   • Certificate number
   • Year of issuance
   • Property type

4. Complete verification

5. Click Calculate

You’ll receive:

• Approved service charge
• Management company details
• Fee breakdown

Method 2: Dubai REST App

You can also check through:

• Dubai REST mobile application
• Mollak service for payment

6. How Are Payments Made?

Payments are processed via:

 Mollak System

• Fees deposited into DLD-approved escrow accounts
• Transparent financial control
• Owners’ funds protected

This ensures proper allocation for maintenance and community upkeep.

7. Real Cost Comparison Example

Luxury communities can exceed Dh40 per sq.ft.

8. Why This Matters for Investors

Service charges impact:

• Net rental yield
• ROI calculations
• Long-term holding costs
• Resale attractiveness

Example:

If rent = Dh90,000
Service charge = Dh20,000

Net before mortgage = Dh70,000

That directly affects yield percentage.

9. Investor Tip

Always:

 Check DLD-approved charge
 Ask for last 2 years’ budget history
 Confirm if any major repair fund is planned
 Calculate net ROI including charges

10. Future Outlook

As Dubai grows:

• Smart community infrastructure may increase costs
• Sustainability compliance may add new maintenance expenses
• Larger integrated communities may reduce per-unit burden

With Dubai recording 19.59 million visitors in 2025 (5% growth YoY) and real estate activity rising, maintenance standards are becoming more important.