The Dubai Service Charge Index: How to Look Up Any Building

The Dubai service charge index is the official Dubai Land Department tool, run by the Real Estate Regulatory Agency (RERA) through its Mollak system, that shows the approved service charge for a jointly owned project. You pick the project, the property use and the year, and the approved figure appears. It is free to look at on the Dubai Land Department website or in the Dubai REST app, so the number for the building you are considering is a matter of record, not something to take on trust from a seller.

What is the service charge index (DLD, RERA and Mollak: are they the same thing)?

They are three names for one chain. RERA is the regulator inside the Dubai Land Department. Mollak is the RERA system that monitors service charge payments and holds the money in escrow accounts. The service charge index, sometimes searched as the "DLD service charge index" or the "RERA service charge index", is the public lookup inside it. Mollak describes it as the place to view the RERA approved rate for what an owner is expected to pay.

The reason it exists is simple. The service charge covers the running, maintenance and repair of the shared parts of a building or community. The Dubai Land Department says the budget is approved by RERA after an audit by one of its approved auditing offices, and that management bodies should not claim service charges before that approval. The index is where that approved figure becomes visible to you.

How to check service charges in Dubai, step by step

This is the process on the Dubai Land Department's own service page. It is listed as immediate and open to all residency statuses, and the page lists no fee for it.

1. Open the service. Use the Service Charge Index page on the Dubai Land Department website, the public side of Mollak, or the Dubai REST app (choose "Service Charge Index" from the Services screen).
2. Choose the project name from the menu. Search for the building or community as it is registered, which is not always the name on the marketing brochure.
3. Choose the use, because the index is organised by project, use and year.
4. Choose the year. Run this for the latest year and for the previous year too, so you can see which way the charge is moving.
5. Read the result and write down the approved rate per square foot and the year it applies to.

The Dubai Land Department help line on the service page is +971 8004488.

What does the service charge index show, and what does it not?

How do I calculate my service charge? (Dubai service charge calculator)

There is no separate official calculator to fill in. The Dubai Land Department says an owner's share of the common service charges is calculated by the area owned in the title deed, and that the owner can get the approved cost from the index. So the sum is:

Annual service charge = approved rate per sq ft from the index x the unit's area on the title deed.

Use the area printed on the title deed, not the figure in the advert, because the two can differ. Then add the reserve fund and any chilled water or other items billed separately, if the building bills them that way. The Mollak "Understand your Invoice" page explains what a service charge invoice includes and how each part is worked out. For typical costs per square foot and what pushes them up, see our guide to service charges in Dubai explained, which covers that side so we do not repeat it here.

Why this is the number that matters

It recurs every year, for as long as you own, and it comes straight off your return. A difference of a few dirhams per square foot between two otherwise similar buildings can be the difference between a good buy and a mediocre one, and it is knowable before you commit.

Buyers routinely check the purchase price to the dirham and accept the service charge as whatever the agent says. That is the wrong way round: the purchase price is paid once, and the service charge is paid for as long as you own.

Who pays the service charge, owner or tenant?

The Dubai Land Department states that the landlord is responsible for paying any service fees relating to a property. Tenants pay other items, such as the 5% municipality tax on rent, and cooling charges where units are not individually metered are normally collected by the developer or owners association. If a landlord falls behind on service charges, the property can be blocked in Ejari, so a tenant should know who to ask. If you let a unit and want someone else to deal with the bills, see our property management service.

What is the service charge in Dubai Hills (and other communities)?

There is no single figure for a community. Service charges differ from one project to another depending on the services provided, and inside Dubai Hills Estate an apartment tower and a villa or townhouse cluster are different projects with different budgets. We have not found a dated official community average for Dubai Hills, so we do not quote one. The reliable way is the one above: select the specific project in the index, then ask the seller or landlord for the latest statement. The same applies to any other area. Our note on why service charges vary between buildings explains the reasons.

What else to ask besides the index figure

• What it covers. A high charge on a building with a serviced pool, gym, concierge and chilled water may be better value than a lower one that covers cleaning and little else.
• Whether chilled water is inside or outside the charge. This one line changes the comparison between two buildings more than anything else.
• The reserve fund. The Dubai Land Department describes reserve charges as an annual sum collected for emergency and major repairs. A building with a thin reserve is one where the next major repair can arrive as a special levy.
• The last two years, not just this one. The direction of travel tells you more than the current figure.
• How active the owners association is. The Dubai Land Department says an owners committee is formed once at least 10% of units are registered in owners' names. Read how owners associations work and our pre-purchase service charge checklist.

What a high charge is telling you

Usually one of three things: genuine amenity that costs real money to run, an ageing building where maintenance has caught up, or a management company that has not been challenged. The first is a fair trade. The second is a negotiating point. The third is a reason to look closely at the owners association and at who audits the budget. Mollak also lets you search the approved auditor companies and the approved owners association companies.

If you are looking at a specific building, tell us the name and we will help you read the figure before you make an offer.