Service Charges in Dubai: What You Pay and Why

Service charges are what you pay every year to maintain the building or community you own in. They are quoted in dirhams per square foot and are the running cost most buyers forget to check.

On an apartment they can take a real bite out of your rental yield. On a villa they are lower per square foot but the property is larger, so the bill is not necessarily smaller.

How service charges work

Property	Typical range per sq ft	On a 1,000 sq ft home
Mid-market apartment	AED 12 to 18	AED 12,000 to 18,000
Prime or branded apartment	AED 20 to 35	AED 20,000 to 35,000
Townhouse	AED 3 to 6	AED 3,000 to 6,000
Villa in a community	AED 2 to 5	AED 2,000 to 5,000

These are the ranges we see across the market. Always ask the developer or owners association for the current figure for the specific building, because two towers on the same street can differ sharply.

What the charge covers

Maintenance: lifts, pumps, common area repairs.
Cleaning and security: lobbies, corridors, guarding.
Master community fee: roads, landscaping and lighting outside your building.
Reserve fund: saved for major works such as replacing lifts or resurfacing.
Utilities for common areas and often the chiller infrastructure.

Why they vary so much

A tower with a pool, gym, concierge and valet costs more to run than a simple block. Waterfront and branded developments carry the highest charges because the shared facilities are extensive. A quiet building with a lobby and a lift will be at the bottom of the range.

Higher is not automatically worse. A well-run building with a healthy reserve fund holds its value; a cheap one that defers maintenance eventually issues a special levy instead.

What to check before you buy

The current rate, in writing

Ask for this year's figure, not last year's, and ask whether an increase has been proposed.

Whether chiller is included

Air conditioning is sometimes billed separately by a district cooling provider. That can add thousands a year and catches people out.

The reserve fund

A building with no reserve will eventually ask owners for a lump sum. Ask whether one exists and how it is funded.

Arrears

Service charges must be settled in full before a developer issues the No Objection Certificate needed to sell. Unpaid charges are the single most common reason a sale stalls.

Service charges and your yield

A one-bedroom apartment let at AED 90,000 with a service charge of AED 15,000 is not yielding what the headline suggests. Work out the net figure before you buy, not after.

Next steps

Our guide to Dubai Land Department fees covers the one-off costs of buying, and rental yields by community shows what is left after the running costs. Browse homes for sale or ask us for the service charge on a specific building.

Frequently asked questions

How much are service charges in Dubai?+

Mid-market apartments typically run AED 12 to 18 per square foot a year, prime and branded buildings AED 20 to 35, townhouses AED 3 to 6 and villas AED 2 to 5. Always ask for the current rate for the specific building.

What do service charges cover?+

Maintenance of lifts, pumps and common areas, cleaning and security, the master community fee for roads and landscaping, a reserve fund for major works, and utilities for shared areas.

Do I pay service charges if my property is empty?+

Yes. Service charges are the owner's responsibility whether the property is occupied or not, and they must be cleared in full before a developer will issue the No Objection Certificate needed to sell.