What service charge per sq ft is normal in Dubai?
Most Dubai homes in jointly owned buildings and communities pay somewhere between about AED 3 and AED 30 per square foot a year in service charges, and some pay more. Gulf News gave that range in a buyer explainer last updated in February 2026. Where a property sits in that range depends on the building, not just the area: buildings and communities with more shared facilities to run, such as pools, gyms and round-the-clock security, generally carry higher charges.
There is no single "normal" figure because every building has its own approved budget. The reliable number for a specific property is the rate the Real Estate Regulatory Agency (RERA) has approved for that project and year, which you can look up on the DLD Service Charge Index. This guide does not list figures by community: we could not source current community-level rates to the index or to a dated report from a major outlet, and charges in neighbouring buildings can differ widely. The next sections show how to look them up and work out the annual cost yourself.
How do you calculate service charges in Dubai?
Multiply the approved rate per square foot by your unit's area. Dubai Law No. 6 of 2019 on jointly owned property (Article 25) splits a building's service charges between owners according to each unit's share of the total area, using the area recorded in the Real Property Register, so a larger unit pays proportionally more. RERA's Mollak system then bills owners; Mollak's own description says owners receive their service charge invoices through it quarterly.
Annual service charge = approved rate (AED per sq ft) x unit area (sq ft). Quarterly invoice = annual charge / 4.
| Illustrative unit | Area | Rate (illustrative) | Annual charge | Per quarter |
|---|---|---|---|---|
| Apartment, simpler building | 800 sq ft | AED 10 per sq ft | AED 8,000 | AED 2,000 |
| Apartment, amenity-rich tower | 800 sq ft | AED 20 per sq ft | AED 16,000 | AED 4,000 |
| Larger apartment | 1,500 sq ft | AED 15 per sq ft | AED 22,500 | AED 5,625 |
| Villa in a jointly owned community | 3,000 sq ft | AED 5 per sq ft | AED 15,000 | AED 3,750 |
The rates above are examples chosen within the published AED 3 to AED 30 range, not figures for any real building. Replace them with the approved rate from the index for the project and year you are checking.
In a master community there can be a second layer. The same law (Article 26) provides for usage charges, collected for running the community's shared facilities, under a method approved by DLD in line with the master community declaration. Ask whether the figure you are quoted covers the building only or also the master community.
How do you check a property's service charge in Dubai?
Use the Service Charge Index on the Dubai Land Department (DLD) website or the Dubai REST app. It shows the RERA-approved charges for jointly owned properties; DLD's service page lists no fee and gives the service time as immediate.
- Open the Service Charge Index on dubailand.gov.ae (e-services) or in the Dubai REST app, and start the service.
- Pick the project from the list, then its use (for example residential, office or retail) and the budget year. Gulf News described two other routes in 2023: entering the title deed number with its year of issue, property type and the year you want, or picking the area on a locator map and then the project.
- Complete the captcha and run the search. The result shows the approved rate and a breakdown of the budget, and names the company that manages the building.
- Multiply the rate by the unit's area, as in the table above, and compare the answer with what the seller or agent has told you.
The Mollak version of the index also lets you narrow the search by master community, property group or management company, which helps when a large developer's community contains many separately budgeted buildings. If you are buying a resale unit, ask the seller for their latest Mollak invoice as well, and check there are no arrears: under Article 32 of Law No. 6 of 2019, a unit with unpaid charges may not be disposed of until they are settled.
Until an off-plan building is completed and registered it has no approved budget, so there is nothing to look up yet. Check finished buildings of comparable quality, ideally by the same developer in the same community, and treat the developer's estimate as provisional.
What do Dubai service charges include?
Service charges pay for running, maintaining and insuring the shared parts of a jointly owned property, plus a reserve for emergencies. Article 30 of Law No. 6 of 2019 lists what the service charge account may be used for:
| Permitted use under Article 30 | What it covers in practice |
|---|---|
| Cleaning | Cleaning of common parts such as lobbies, corridors and car parks |
| Security and safety | Guards, access control and safety services |
| Running, repairing and improving common parts | Lifts, plant, pools, gyms, lighting and fixtures in shared areas |
| Insurance | Premiums for insuring the jointly owned property |
| Audit fees | Auditing the service charge accounts and budgets |
| Management company fees | Fees set, in amount and method, by RERA |
| Developer administrative costs | For major projects, as RERA approves |
| Cash reserve | A separate emergency fund; outside critical emergencies, spending it needs RERA approval |
| RERA inspection and oversight | Costs of RERA supervising the building's management |
| Other approved costs | Items in the master community declaration that RERA approves |
DLD has also said that the charges for common areas include district cooling (chiller) costs for those areas. Utilities inside your own unit are a separate matter, so ask how cooling, electricity and water for the unit itself are billed. The budget breakdown on the index shows how a building's charge is split across these headings.
Who sets and approves service charges in Dubai?
The building's management entity proposes the budget, a RERA-recognised audit firm must approve it, and RERA approves the charges before anything is collected. Under Article 27 of Law No. 6 of 2019, a management entity may not charge owners any amount without RERA's prior approval, and RERA will not approve a budget that a certified audit firm has not signed off. RERA can approve a temporary budget while an audited one is pending.
Who manages the building depends on its category under the law. Developers manage major projects, with an owners committee of up to nine members appointed by RERA (Articles 18 and 22); hotel projects and other buildings are run by management companies under arrangements RERA approves. The owners committee reviews the annual maintenance budget and can ask for financial reports.
The budgets themselves run through Mollak, the system RERA uses to regulate jointly owned property. Mollak's published process covers uploading and approving each service charge budget, invoicing owners and receiving payments, and Gulf News noted in 2023 that payments go into bank accounts approved by RERA. Under Article 30, collected charges must be held in a separate bank account for each property.
Is service charge mandatory in Dubai?
Yes. If you own a unit in a jointly owned building or community, paying the RERA-approved service charges is a legal obligation under Law No. 6 of 2019, not an optional fee.
- You must pay your share: Article 25 places each owner's share on the owner, and Article 28 says you may not refuse to pay approved charges or give up your interest in the common parts to avoid them.
- Letting does not move the bill: under Article 16(b) the owner pays unless the lease says otherwise, and even then stays liable if the tenant does not pay. DLD restated this in a January 2020 notice.
- Arrears follow the unit: Article 32 gives the management entity a lien over the unit. After a RERA-approved written notice and 30 days, an unpaid claim can be enforced by an execution judge at the Rental Disputes Settlement Centre, who may order the unit sold at public auction, with costs charged to the owner.
- Services cannot be cut off as leverage: Article 29 bars developers and management entities from stopping an owner using their unit or the common facilities to force payment outside the legal process.
For off-plan buyers, the developer pays the service charges on units it has not sold, and on sold units where the sale contract says it will (Article 25). Check your sale and purchase agreement for when your liability starts.
Can you dispute a service charge increase?
Yes, but the law sets no fixed cap on yearly increases. Instead, every change has to pass the audit and RERA approval steps described above, so the first check is whether the amount you are invoiced matches the approved figure on the index for that year. DLD has said that RERA-approved invoices are the reference point in service charge disputes.
If you still disagree, a lawyer writing in Khaleej Times in March 2025 suggested raising it first with the developer or management company, then taking it to the Rental Dispute Centre, which hears disputes under Law No. 6 of 2019 (Article 42). RERA can also replace a management company under the law.
How do service charges affect net rental yield?
For most Dubai apartment owners the service charge is the biggest fixed running cost, and because the landlord pays them, every dirham comes straight off your rental income. Two flats with the same rent and price can end up with quite different net yields.
Illustrative example (not market data): an 800 sq ft apartment priced at AED 1,200,000, with a 4% DLD fee bringing the outlay to AED 1,248,020, rented out at AED 84,000 a year. Gross yield is 7.0%. The table isolates the service charge; upkeep, letting fees and vacant periods would lower the net figure further.
| Service charge rate (illustrative) | Annual charge | Rent left after service charge | Net yield on total cost, before other costs |
|---|---|---|---|
| None (for comparison) | AED 0 | AED 84,000 | 6.73% |
| AED 10 per sq ft | AED 8,000 | AED 76,000 | 6.09% |
| AED 20 per sq ft | AED 16,000 | AED 68,000 | 5.45% |
| AED 30 per sq ft | AED 24,000 | AED 60,000 | 4.81% |
In this example each extra AED 10 per sq ft costs about 0.64 percentage points of yield. Look up the approved rate before you compare listings, then test your own figures in the rental yield calculator; our rental yields guide covers the other costs. When Profound's team shortlists projects for investors, the service charge of comparable completed buildings is one of the figures we check.
This is general information, not legal or financial advice; confirm current charges on the DLD index and take advice from RERA or a qualified adviser on any dispute.
