Dubai Property Service Charges by Area 2026: Complete Comparison Guide
Complete 2026 guide to Dubai property service charges by area with comparison tables, what's included/excluded, RERA regulations, and tips for negotiating with developers.
Key Takeaways
- Service charges range from AED 5–40/sqft depending on area and building quality — always factor them into your investment ROI calculation before buying
- Affordable areas like JVC, Arjan, and Dubai Silicon Oasis offer the lowest service charges (AED 5–16/sqft), maximizing net rental yields for investors
- Luxury areas like Palm Jumeirah, Downtown Dubai, and DIFC command the highest charges (AED 20–40/sqft), but offer premium amenities and capital appreciation potential
- District cooling is often the hidden cost — always check whether it's included in service charges or billed separately, as it can add AED 3,000–8,000+ annually
- Use RERA's Mollak system and the Dubai REST app to verify service charge budgets and building financial health before purchasing
When you buy a property in Dubai, the purchase price is only part of the cost equation. Service charges — the annual maintenance fees paid by every homeowner — can significantly impact your net rental yield and long-term investment returns. Yet many buyers, especially first-time overseas investors, overlook these recurring costs until they receive their first bill.
This guide breaks down Dubai property service charges by area for 2026, with comparison tables across the city's major residential communities, what's included and excluded, and practical tips for negotiating with developers. Whether you're comparing a studio in JVC against a penthouse in Dubai Marina, understanding service charges is essential for making an informed investment decision.
What Are Dubai Property Service Charges?
Service charges are annual fees that property owners pay to cover the maintenance and management of common areas in their building or community. In Dubai, these charges are regulated by the Real Estate Regulatory Agency (RERA), a division of the Dubai Land Department (DLD), under the Strata Law (Law No. 27 of 2007 and its amendments).
Every owner in a strata-titled building is legally obligated to pay service charges. The amount is calculated based on your unit's share of the total building area — typically expressed as AED per square foot. A 1,000 sq ft apartment in a building charging AED 18/sqft would pay AED 18,000 per year in service charges.
Who Sets Service Charges?
Service charges are proposed by the building's Owners Association (OA) — now managed by Mollak, the DLD's official strata management system — and must be approved by RERA. Developers cannot unilaterally set or increase charges without regulatory oversight. This framework was strengthened significantly after 2019 reforms that transferred OA management from developers to RERA-appointed management companies.
What Do Dubai Service Charges Include?
Service charges typically cover the following:
- Common area maintenance: Lobbies, corridors, elevators, parking areas, and external facades
- Utilities for common areas: Electricity and water for shared spaces, including gym, pool, and landscape lighting
- Building insurance: Structural and common area insurance coverage
- Security: 24/7 security personnel, CCTV systems, and access control
- Facility management: Gym, swimming pool, children's play area, and other amenity upkeep
- Landscaping and gardening: Community green spaces, parks, and roadside landscaping
- Waste management: Garbage collection and cleaning services
- Elevator maintenance: Annual servicing and repairs
- Pest control: Regular pest management for common areas
- Administration and management fees: OA management, auditing, and legal compliance
What Do Service Charges Exclude?
It's equally important to understand what you'll pay separately:
- In-unit utilities: Your apartment's DEWA (electricity and water) bills
- Air conditioning (chilled water): Many buildings use district cooling, which is billed separately by companies like Empower or Palm District Cooling — this can add AED 3,000–8,000+ per year depending on unit size and usage
- Home contents insurance: Insurance for your personal belongings inside the unit
- Interior maintenance: Repairs within your apartment (plumbing, electrical, appliances)
- Parking: Some buildings charge separately for reserved parking spaces
- Internet and TV: Du or Etisalat connections are billed individually
- Special assessments: One-time charges for major repairs or upgrades not covered by the reserve fund
Dubai Service Charges by Area 2026: Comparison Table
The following table shows the typical service charge ranges across Dubai's most popular residential areas in 2026. Rates are based on RERA-approved budgets and market data from major property consultancies.
Premium / Luxury Areas
| Area | Service Charge (AED/sqft) | Annual Cost (1,000 sqft) | Key Drivers |
|---|---|---|---|
| Palm Jumeirah | 22–35 | 22,000–35,000 | Beach maintenance, private infrastructure, luxury amenities |
| Downtown Dubai | 20–30 | 20,000–30,000 | Premium landscaping, high-end amenities, Burj Khalifa district costs |
| Dubai Marina | 16–25 | 16,000–25,000 | Waterfront infrastructure, marina upkeep, high-rise maintenance |
| JBR (Jumeirah Beach Residence) | 18–28 | 18,000–28,000 | Beach access, The Walk maintenance, premium facilities |
| DIFC | 25–40 | 25,000–40,000 | Premium security, luxury finishes, exclusive amenities |
| Emirates Hills | 15–22 | 15,000–22,000 | Community landscaping, golf course proximity, gated security |
Mid-Range / Popular Investment Areas
| Area | Service Charge (AED/sqft) | Annual Cost (1,000 sqft) | Key Drivers |
|---|---|---|---|
| Business Bay | 14–22 | 14,000–22,000 | Mixed-use infrastructure, canal maintenance, growing amenity base |
| Dubai Hills Estate | 12–20 | 12,000–20,000 | Golf course, parks, master-planned community facilities |
| JVC (Jumeirah Village Circle) | 10–16 | 10,000–16,000 | Community maintenance, basic amenities, efficient management |
| Arabian Ranches | 10–18 | 10,000–18,000 | Gated community, golf course, equestrian facilities |
| Al Barsha | 10–15 | 10,000–15,000 | Proximity to Mall of the Emirates, established community |
| Dubai Creek Harbour | 15–24 | 15,000–24,000 | Waterfront infrastructure, new community amenities, creek views |
Affordable / Emerging Areas
| Area | Service Charge (AED/sqft) | Annual Cost (1,000 sqft) | Key Drivers |
|---|---|---|---|
| DAMAC Hills | 9–15 | 9,000–15,000 | Community facilities, Trump golf course proximity, growing infrastructure |
| International City | 5–9 | 5,000–9,000 | Basic amenities, cluster-based management, minimal facilities |
| Dubai Silicon Oasis | 7–12 | 7,000–12,000 | Tech park infrastructure, community center, family amenities |
| Discovery Gardens | 6–10 | 6,000–10,000 | Garden maintenance, basic facilities, established community |
| Dubai Investment Park | 6–11 | 6,000–11,000 | Industrial-adjacent community, basic amenities |
| Arjan | 8–14 | 8,000–14,000 | New community development, growing amenities, Miracle Garden proximity |
| Dubai South | 7–12 | 7,000–12,000 | Airport-adjacent infrastructure, new residential zones |
| Mirdif | 7–12 | 7,000–12,000 | Family-oriented community, established neighborhood facilities |
How Service Charges Impact Your Investment Returns
Service charges directly reduce your net rental yield. Consider two properties generating the same gross rental income:
Example: 1-Bedroom Apartment (800 sq ft) at AED 75,000/year rent
| Area | Service Charge Rate | Annual Service Charge | Net Rent | Net Yield (at AED 900K price) |
|---|---|---|---|---|
| JVC | AED 12/sqft | AED 9,600 | AED 65,400 | 7.3% |
| Dubai Marina | AED 20/sqft | AED 16,000 | AED 59,000 | 6.6% |
| Downtown Dubai | AED 25/sqft | AED 20,000 | AED 55,000 | 6.1% |
| Palm Jumeirah | AED 28/sqft | AED 22,400 | AED 52,600 | 5.8% |
The difference between JVC and Palm Jumeirah service charges alone is AED 12,800 per year — that's a 2.4% swing in net yield on the same rental income. Over a 5-year holding period, this compounds to AED 64,000 in additional costs.
This is why investors focused on yield rather than capital appreciation should pay close attention to service charge rates when comparing areas.
Service Charge Trends in 2026
Rising Costs Across the Board
Service charges in Dubai have been trending upward for several consecutive years, driven by:
- Inflation and labor costs: Facility management and security labor costs have risen 8–12% since 2023, reflecting broader UAE wage growth and visa reforms
- Insurance premium increases: Building insurance costs have climbed 15–20% following global reinsurance rate hikes
- Energy costs: DEWA rates for common areas have increased, and district cooling charges continue to rise
- New regulatory requirements: RERA's enhanced compliance standards for fire safety, elevator maintenance, and building inspections add to annual budgets
- Amenity expectations: Newer developments with extensive amenities (infinity pools, co-working spaces, concierge services) naturally carry higher service charges
Area-Specific Trends
- JVC and Arjan: Service charges have risen 10–15% over the past two years as communities mature and management standards improve. However, they remain among the most affordable in Dubai
- Dubai Marina and JBR: Older towers are facing rising maintenance costs for aging infrastructure, with some buildings seeing 12–18% increases as major repairs become necessary
- Dubai Hills Estate: Service charges are stabilizing as the community reaches maturity and economies of scale improve
- Business Bay: Newer towers command premium service charges for luxury amenities, while older buildings in the district remain more affordable
RERA and the Regulatory Framework
Mollak System
Since 2019, all Owners Association management in Dubai has been overseen by Mollak, the DLD's centralized strata management platform. Key features include:
- Transparent budgeting: All service charge budgets must be submitted and approved through Mollak
- Service provider regulation: OA management companies must be RERA-registered
- Dispute resolution: Owners can challenge unreasonable charges through the Rental Dispute Settlement Centre (RDSC)
- Reserve fund requirements: Buildings must maintain a reserve fund for major repairs, typically 10–15% of the annual service charge budget
How to Check Service Charges Before Buying
Before purchasing a property in Dubai, you can:
- Request the service charge history from the seller or their agent — they are legally required to disclose this
- Check Mollak records through the DLD or Dubai REST app for RERA-approved budgets
- Ask for the OA financial statements to understand the building's financial health and reserve fund
- Compare similar buildings in the same area to identify unusually high or low charges
Tips for Negotiating and Managing Service Charges
1. Join the Owners Association Committee
Active OA participation gives you direct influence over budget decisions, service provider selection, and cost management. Buildings with engaged owners typically maintain more reasonable service charge increases.
2. Scrutinize the Budget
Review the annual service charge budget line by line. Look for:
- Overpriced service contracts that could be competitively tendered
- Excessive management fees (should typically be 8–15% of total budget)
- Inadequate reserve fund contributions (a sign of future special assessments)
- Duplicate insurance coverage
3. Compare District Cooling Costs
District cooling can add 30–50% to your effective service charge bill. When comparing properties, always ask whether cooling is included in service charges or billed separately. Buildings with included cooling often offer better value than those with separate district cooling bills.
4. Negotiate at Purchase
When buying from a developer (off-plan or ready), negotiate for:
- A capped service charge increase for the first 3–5 years (some developers offer this)
- Clarity on which amenities are included vs. pay-per-use
- Written confirmation of the estimated annual service charge
5. Factor Service Charges Into Your ROI Calculation
Always calculate your net yield after service charges, not just gross yield. A property with a 9% gross yield but AED 20/sqft service charges may deliver a lower net return than a 7% gross yield property with AED 10/sqft charges.
Service Charges vs. Global Markets
Dubai's service charges are competitive when compared to similar global markets:
- London: Service charges for comparable properties range from GBP 4–12/sqft (AED 18–55/sqft), often higher than Dubai
- Singapore: Management and maintenance fees average SGD 3–6/sqft (AED 9–18/sqft), comparable to mid-range Dubai areas
- New York: Common charges and HOA fees for condos average USD 5–15/sqft (AED 18–55/sqft), significantly higher than most Dubai communities
Dubai's regulatory framework through RERA and Mollak also provides stronger transparency and dispute resolution mechanisms than many competing markets.
Key Takeaways
- Service charges range from AED 5–40/sqft depending on area and building quality — always factor them into your investment ROI calculation before buying
- Affordable areas like JVC, Arjan, and Dubai Silicon Oasis offer the lowest service charges (AED 5–16/sqft), maximizing net rental yields for investors
- Luxury areas like Palm Jumeirah, Downtown Dubai, and DIFC command the highest charges (AED 20–40/sqft), but offer premium amenities and capital appreciation potential
- District cooling is often the hidden cost — always check whether it's included in service charges or billed separately, as it can add AED 3,000–8,000+ annually
- Use RERA's Mollak system and the Dubai REST app to verify service charge budgets and building financial health before purchasing
Frequently Asked Questions
How are Dubai property service charges calculated?
Service charges are calculated based on your unit's proportionate share of the total building area, expressed as AED per square foot. Your unit size (in sq ft) is multiplied by the building's approved rate per sq ft. For example, an 850 sq ft apartment in a building with AED 15/sqft service charges would pay AED 12,750 annually.
Can service charges be increased without the owner's consent?
Service charge budgets must be approved by the Owners Association and registered with RERA through the Mollak system. While individual owners cannot veto increases, the OA committee (elected by owners) must approve the budget. If you believe charges are unreasonable, you can file a complaint with the Rental Dispute Settlement Centre.
Are service charges the same for all units in a building?
The rate per square foot is typically the same for all residential units in a building, but the total amount varies based on unit size. Some buildings may have different rates for different unit types (e.g., penthouses with exclusive amenities may pay a premium rate).
Do tenants pay service charges in Dubai?
No, service charges are the legal responsibility of the property owner, not the tenant. However, landlords may factor service charge costs into the rental price. Tenants pay their own DEWA bills and, in some cases, separate district cooling charges.
What happens if I don't pay my service charges?
Non-payment of service charges is taken seriously in Dubai. The OA can impose penalties, and persistent non-payment can result in legal action through the Rental Dispute Settlement Centre. In extreme cases, the DLD can place a hold on property transactions until outstanding charges are settled. Unpaid service charges also accrue interest and can complicate property resale.