Service Charges in Dubai & UAE

RERA-regulated community fees — rates by area 2025

AED 10–35Per Sq Ft/Year
RERARegulates Rates
AnnualPayment Cycle

Service Charges by Area — Dubai & Abu Dhabi 2025

AreaProperty TypeService Charge RateNotes
Palm JumeirahLuxury IslandAED 20–30/sqftWorld-class facilities
Downtown DubaiCity CentreAED 20–35/sqftHighest in Dubai
Dubai MarinaWaterfrontAED 15–25/sqftMarina maintenance
Business BayBusiness DistrictAED 15–22/sqftCanal views premium
JVCAffordableAED 10–15/sqftLower facilities
Arabian RanchesVilla CommunityAED 3–8/sqftLower sqft for villas
Al Reem IslandAD WaterfrontAED 12–20/sqftSimilar to Dubai

Overview & Analysis

Service charges in Dubai are an annual owner-borne cost covering building maintenance, security, common area cleaning, facilities management (gyms, pools, landscaping), and HVAC maintenance in common areas. They are regulated by RERA through the MOLLAK system — a centralised platform that sets, collects, and audits service charges for all registered buildings. Charges are expressed in AED per square foot per year and vary significantly between communities. A 900 sqft 1BR apartment in Downtown Dubai at AED 25/sqft incurs AED 22,500/year in service charges alone — roughly 1.5–2% of the property value — which is a material deduction from gross rental yield. The same-sized unit in JVC at AED 12/sqft costs AED 10,800/year.

Villa communities typically charge per the plot or villa rather than per sqft of built area, making the absolute figures lower than apartments in absolute terms but the methodology different. Arabian Ranches charges AED 3–8/sqft on the community fee, which for a 3,000 sqft villa is AED 9,000–24,000/year — including landscaped streets, security, and community facilities. The key variable is the quality of facilities: luxury high-rises with concierge, multiple pools, gyms, business centres, and marina access (e.g., the Address hotels portfolio, Dubai Marina luxury towers) justify higher charges; basic low-rise apartment buildings in affordable communities should have charges in the AED 10–15/sqft range.

Investors must factor service charges into all net yield calculations. A JVC 1BR apartment generating AED 65,000/year gross rent at AED 12/sqft service charge on 750 sqft (AED 9,000) yields AED 56,000 net before management fees and maintenance. The same calculation for a Business Bay unit generating AED 85,000 at AED 18/sqft on 800 sqft (AED 14,400) yields AED 70,600 net — a wider absolute gap than the gross figures suggest. RERA requires buildings to publish their approved service charge budgets through MOLLAK, which landlords and tenants can access. Disputes about charges exceeding the approved budget can be raised through RERA's Dispute Resolution Centre.

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Frequently Asked Questions

Can landlords pass service charges to tenants in Dubai?
Usually service charges are the owner's responsibility and are factored into the rental price. However, some landlords negotiate for tenants to cover utility bills and sometimes community charges — this must be explicitly agreed in the tenancy contract (Ejari).
How do I dispute a service charge in Dubai?
Service charge disputes are handled by RERA. You can check your building's approved budget through the MOLLAK system and raise a complaint through RERA's Dispute Resolution Centre if charges exceed the approved rate.

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