Dubai Service Charges Explained
Service charges are the annual per-square-foot levy owners pay for building maintenance, security, chiller infrastructure and the reserve fund. In Dubai they run from roughly AED 10/sqft in mid-market communities to over AED 35/sqft on Palm Jumeirah — the single biggest deduction between gross and net yield.
Key takeaways
- Budget 0.7–1.5 percentage points of yield for service charges.
- RERA approves every community's service-charge budget annually.
- Chiller (district cooling) may be billed separately — always ask.
- The Mollak system publishes approved rates; verify before you buy.
Indicative 2026 service charges by area
| Community | AED / sqft / year | On a 900 sqft 1BR |
|---|---|---|
| JVC | 10–14 | AED 9,000–12,600 |
| Business Bay | 14–19 | AED 12,600–17,100 |
| Dubai Marina | 16–22 | AED 14,400–19,800 |
| Downtown Dubai | 18–25 | AED 16,200–22,500 |
| Dubai Creek Harbour | 17–22 | AED 15,300–19,800 |
| Palm Jumeirah | 25–38 | AED 22,500–34,200 |
What the charge covers
- Common-area cleaning, security and management fees
- Lifts, fire systems, pumps and generator maintenance
- Pool, gym and landscaping
- Building insurance
- Reserve fund for major capital works
How to verify and challenge a charge
- Ask the seller or developer for the Mollak-approved budget for the current year.
- Check the per-sqft rate against comparable towers in the same community.
- Confirm whether district cooling capacity charges are inside or outside the levy.
- If the charge looks out of line, owners can raise it with RERA, which must approve any increase.
Frequently asked questions
How much are service charges in Dubai?
Typically AED 10–25 per sqft per year, rising above AED 35/sqft for luxury waterfront towers with extensive amenities.
Who sets Dubai service charges?
The owners' association or management company prepares a budget which RERA must approve. Approved rates are published through the Mollak system.
Do service charges apply to off-plan property?
They start at handover. Developers usually require a prepayment of six to twelve months of service charges at the handover appointment.