Dubai Service Charges Explained: Typical Rates, How to Check Them and What Insurance You Need

Service charges are the biggest yearly cost of owning an apartment in Dubai, and the rate for every building is public. They are charged per square foot, approved by RERA, and can differ by a factor of three between two towers in the same area. Checking the approved rate before you buy takes two minutes and can change whether a property is a good investment.

What service charges pay for

Every owner in a jointly owned building or community pays an annual charge towards the shared costs:

• security, cleaning and landscaping
• lifts, lighting and common-area air-conditioning
• pools, gyms and other facilities
• building insurance for the structure and common areas
• the management company’s fees
• a reserve fund for major repairs and replacements

The rules come from the Jointly Owned Property Law, Law No. 6 of 2019. Charges must be approved by RERA each year, and they are billed and paid through the DLD’s Mollak system.

How much service charges cost

The charge is set per square foot of your unit, per year.

Property type	Typical rate (AED per sq ft per year)
Villa and townhouse communities	About 2 to 6
Standard apartments	About 10 to 30
Mid-market towers (for example Business Bay, JLT, Arjan)	About 12 to 18
Premium and branded towers	30 and above

Example: a 1,000 sq ft apartment at AED 15 per sq ft costs AED 15,000 a year. The same size at AED 28 per sq ft costs AED 28,000. On an apartment worth about AED 1.2 million, that difference alone moves the net yield by around one percentage point. Test it with our rental yield calculator.

Rates vary even inside one community because of the age of the building, the number of lifts, the size of the facilities, whether there is a pool or a hotel operator, and how the costs are shared between residential and retail parts.

District cooling: often a separate bill

In many towers the air-conditioning is supplied by a district cooling company. Depending on the building, cooling is either included in the service charge or billed separately to the owner or tenant, with a fixed capacity charge plus a charge for what you use. Ask which applies, because it is one of the largest differences in running costs between two otherwise similar apartments.

How to check the approved rate for any building

1. Open the service charge index on the Dubai REST app or the Dubai Land Department (DLD) website.
2. Search by building, project or community. The result shows the RERA-approved rate per square foot for the current year.
3. Compare it with what the agent or seller told you.
4. Multiply by the unit’s area on the title deed to get the annual cost.
5. If you already own, log in to Mollak with your title deed details to see the approved budget, your invoices and your payments.

Do this before you reserve, again before you sign, and every year when the new budget is approved.

If an invoice is higher than the approved rate, raise it with the management company in writing, and take it to RERA if it is not resolved.

What happens if service charges are not paid

Unpaid charges stay with the property. That is why the developer’s No Objection Certificate is required before a resale: it confirms the seller has cleared them. As a buyer, never accept a statement that a unit is “fully paid” without the NOC. As an owner, unpaid charges attract penalties, and the management company can take legal action to recover them.

Is property insurance required in Dubai?

Situation	Building insurance	Contents insurance
Apartment bought with cash	Not required. The structure is covered by the building’s master policy, paid through service charges	Optional, recommended
Any property bought with a mortgage	Required by the bank, with the bank named on the policy	Optional, recommended
Villa or townhouse	Your own responsibility, because there is no building-wide policy for your home	Optional, recommended

Two points people miss:

• The master policy does not cover the inside of your apartment, such as your fittings, furniture and belongings, or your liability if a leak from your unit damages a neighbour’s.
• Mortgage lenders also require life insurance on the borrower.

Contents and liability cover for an apartment is inexpensive compared with the cost of a single water-damage claim.

Service charges and your investment

• Use net yield, not gross. Subtract service charges before comparing two properties.
• Large facilities cost money. Pools, gyms and landscaped podiums raise the charge for every owner.
• Older buildings can mean rising costs and special levies if the reserve fund is low.
• Ask for the last two years of budgets to see whether the rate is stable.

For the other recurring costs, see yearly costs after buying in Dubai and 7 hidden costs of buying property.

Frequently Asked Questions

How much are service charges in Dubai?

Typically AED 10 to 30 per square foot a year for apartments, more in premium towers, and about AED 2 to 6 in villa communities.

Who pays service charges, the owner or the tenant?

The owner. Tenants pay their own utilities, the municipality housing fee and, in some buildings, cooling charges.

How can I check the service charge for a building in Dubai?

Search the service charge index on the Dubai REST app or the DLD website. It shows the RERA-approved rate per square foot.

What is Mollak?

The DLD’s system for managing service charges. Management companies must issue invoices through it, and owners can view budgets and payments.

Can a developer increase service charges whenever it wants?

No. The annual budget and rate must be approved by RERA.

Is home insurance mandatory in Dubai?

Only if you have a mortgage, when the bank requires building insurance. For cash buyers it is optional but recommended.

This article is general information. Approved rates change each year, so check the service charge index for the building you are considering.