What are Dubai service charges?
Every registered strata property in Dubai pays an annual service charge, calculated per square foot and payable to the Owners Association (OA). It funds building operations โ security, cleaning, maintenance, insurance, chiller AC, and the sinking fund for major repairs. Charges are approved yearly by RERA and published on the Mollak portal, giving Dubai one of the most transparent service-charge regimes in the world.
What's inside a typical service charge
- General fund: 55โ65% โ cleaning, security, staffing, common-area utilities
- Master community charge: 10โ15% โ shared roads, parks, master community amenities
- Reserve/sinking fund: 10โ15% โ chiller replacement, faรงade cleaning, lift refurbishment
- Insurance: 5โ8% โ building and public liability
- Improvement fund: 5โ10% โ landscaping upgrades, upgrades to lobby, gyms
- Chiller (district cooling): often billed separately by Empower/Emicool at AED 0.5โ1.0 per RTh
Benchmark service charges by district (2026)
| District | Range (AED/sqft/yr) | Notes |
|---|---|---|
| Jumeirah Village Circle (JVC) | 12โ18 | Best value; standard buildings |
| Business Bay | 16โ24 | Wide range; older towers higher |
| Dubai Marina | 18โ28 | Sea-view towers command premium |
| Downtown Dubai | 22โ35 | Includes Burj Khalifa proximity |
| Palm Jumeirah apartments | 25โ45 | Beach access, extensive amenities |
| Emaar Beachfront | 22โ32 | Newer, well-managed |
| Branded residences | 35โ60 | Six Senses, Bulgari, Armani |
Red flags before you buy
- Very low charge in an old building (>10 years): sinking fund likely under-funded โ surprise assessment coming
- Charge above district benchmark by >30%: usually inefficient OA management
- No published Mollak service charge report: request last 2 years before signing
- Chiller not clarified: some buildings bill separately, some bundle โ makes 10% difference
- OA in dispute with developer: check DLD records; unpaid developer contributions cause issues
Frequently asked questions
Who sets the service charge?
The Owners Association proposes an annual budget which must be approved by RERA and published on Mollak. Owners vote at the AGM, and the approved rate is then billed per sqft of your unit's saleable area.
Can service charges increase year-on-year?
Yes, but any increase above 5% requires RERA justification. Most buildings see 2โ4% annual increases in line with cost inflation.
What if I don't pay?
Persistent non-payment (usually 3 months+) can result in a service-charge lien and blocked resale registration at DLD. This is aggressively enforced.
Do villas pay service charges?
Villas in gated master communities pay a smaller master community charge (AED 2โ5/sqft) covering security, gate access and shared roads โ no lift/chiller components.
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