Two flats in the same area can look identical on paper and cost very different amounts to own, and the gap is often the service charge. The good news: service charges in Dubai aren’t a secret. The RERA-approved rates for jointly owned buildings are published by the Dubai Land Department, and you can look them up yourself in a few minutes before you make an offer.
Quick answer: Service charges pay for the shared parts of a building or community. They’re approved by RERA, published on the Dubai Land Department’s Service Charge Index, and billed to each owner according to their unit’s registered area. Check the index for the exact project before you buy, and make sure the seller’s account is clear before transfer.
| Question | Short answer |
|---|---|
| Who approves them? | RERA, once a RERA-recognised audit firm has approved the budget |
| Where can I see them? | DLD Service Charge Index (website or Dubai REST app) |
| How is my bill worked out? | Your unit’s registered area as a share of the building |
| Who pays, owner or tenant? | The owner, unless the lease says otherwise; the owner stays liable if the tenant doesn’t pay |
| What if they’re unpaid? | They become a charge on the unit, which can’t be sold until they’re cleared |
| Which law applies? | Law No. 6 of 2019 on jointly owned property |
What service charges in Dubai pay for
Service charges cover the upkeep and running of the common areas: cleaning and maintenance, security, landscaping, waste collection, repairs, building management and the utilities for shared spaces. Pools, gyms, lifts, lobbies and corridors all sit in that budget.
They’re not the same as paying a property manager to look after your own flat. If you want that side of things, see our property management service.
How service charges are set and approved
The rules come from Law No. 6 of 2019 on jointly owned property, which replaced the old Law No. 27 of 2007. Under it, the building’s management company can’t simply decide a number and send invoices.
The process works like this. The management company prepares an annual budget. An audit firm recognised by RERA has to approve it. RERA then has to approve the charges before anything can be collected; the application goes through Mollak, the DLD system that tracks service charge budgets and payments. The money is paid into a dedicated service charge account at a RERA-recognised bank.
How a Dubai service charge is approved and billed
- The management company prepares the annual budget
- An audit firm recognised by RERA approves the budget
- RERA approves the charges through Mollak
- The approved rate shows on the DLD Service Charge Index
- Each owner is billed by the registered area of their unit
- Payments go into a dedicated service charge bank account
Under Law No. 6 of 2019.
Buildings also keep a cash reserve for emergency expenses, held in a separate account. Except in a critical emergency, money can’t be taken out of it without RERA’s approval. Once at least 10% of a building’s units are registered, RERA can appoint an owners committee of up to nine members, and that committee reviews the annual budget and makes recommendations, but it doesn’t approve it.
How your share is calculated
Your bill is your unit’s area as a share of the building’s total, using the area recorded in the Real Property Register. In practice, that’s why rates are quoted per square foot. Multiply the approved rate for your project and usage by your unit’s registered area and you have a solid estimate of your annual bill. In master communities, the master developer can also collect RERA-approved charges for shared community facilities, so check whether the figures you see cover both.
Balcony area counts too, but only a quarter of it. The chargeable area is the apartment’s inside area plus 25% of the balcony area, according to the Dubai Land Department. For example, a 900 sq ft apartment that includes a 100 sq ft balcony is charged on 825 sq ft: 800 sq ft of inside area plus 25 sq ft for the balcony. If the service charge is AED 16 per sq ft, you’d pay AED 13,200 a year (825 × 16), not AED 14,400. Terraces can be counted differently, so check the chargeable area on the service charge invoice, not the size in the advert.
While units in a building are still unsold, the developer pays their share.
Example: the annual bill on a 1,000 sq ft apartment
These are illustrative figures, not any building’s approved rate. Use the index for the real number.
| Example | Figure |
|---|---|
| Chargeable area | 1,000 sq ft |
| Approved rate (assumed) | AED 16 per sq ft a year |
| Annual service charge | AED 16,000 |
| Monthly equivalent, for budgeting | AED 1,333 |
The monthly figure is only for budgeting: the management company sets how often you’re invoiced. Before you rely on a number, confirm the chargeable area and every approved charge for that unit.
What it means for your rental return
Say that apartment rents for AED 100,000 a year. After AED 16,000 of service charges you’re left with AED 84,000, before any property management fee, repairs inside the flat or months without a tenant. That’s the difference between gross yield (the annual rent divided by the price) and net yield (the rent left after running costs, divided by the price), and it’s why two flats with the same rent can earn very different returns.
Service charges don’t cover your own unit’s utilities, repairs and maintenance inside the apartment, or a property manager to look after it, so budget for those separately.
Why are service charges higher in some Dubai buildings?
The rate reflects what each building costs to run, so it can differ even between towers on the same street. The main reasons are:
- Facilities. Pools, gyms, spas, play areas and landscaped podiums all need staff, energy and upkeep.
- Building age. Older buildings tend to need more repairs and replacements, such as lifts and façade work.
- Shared space. Large lobbies, gardens and car parks spread across fewer units cost more per square foot.
- Service levels. Concierge, security and cleaning standards vary from building to building.
That’s why the approved rate for the exact project matters more than an area average.
How to check the Dubai Service Charge Index
The official Service Charge Index gives you the result immediately. You can use the Dubai Land Department website or the Dubai REST app.
- Open the Service Charge Index service on the DLD website or in Dubai REST.
- Select the project name from the list.
- Choose the usage (residential, for most buyers).
- Choose the year.
- Read the approved rates that come up for that project.
Our tip: look at the last two or three years, not just this one. A rate that jumps sharply is worth a question to the management company before you commit. A steady rate in an older building can be a good sign, but ask what maintenance is planned: a rate that never moves can also mean work is being put off.
Who pays: landlord or tenant?
The owner pays, unless the lease says otherwise. Even if a lease puts it on the tenant, the owner stays liable to the building if the tenant doesn’t pay.
What happens if service charges aren’t paid
This is the part every buyer should understand. Unpaid service charges become a charge on the unit itself, and the unit can’t be sold or otherwise disposed of until they’re paid. Owners also aren’t allowed to withhold payment because they’re unhappy with the building.
If an owner still doesn’t pay, the management company can serve a RERA-approved notice, which gives the owner 30 days to pay. If it’s still unpaid after that, the claim can go to the execution judge at the Rental Disputes Centre, which can order the unit sold at public auction. Disputes about service charges, including challenges to increases, also go to the Rental Disputes Centre, usually after raising it with the management company first.
Your checklist before you buy
- Look up the index for the exact project, usage and year, and work out the annual cost from the unit’s registered area.
- Ask the seller for the latest service charge statement and make sure there are no arrears on the unit.
- Plan for the NOC. DLD’s sale registration for freehold property needs a no-objection certificate from the developer, issued as an e-NOC through Dubai REST, and the service charges have to be cleared first. The seller applies for it, and for some buildings the owners’ association management company also has to confirm the account is clear, so build time for it into your schedule. Our conveyancing team can help with this as part of the transfer.
- Ask about the reserve fund and upcoming works. Big jobs like lift replacements are easier to live with when the reserve is healthy.
- Run the numbers. For an investor, service charges come straight off your rental income, so include them in your yield. If you’re financing, add them to your monthly budget alongside the mortgage; our mortgage pre-approval guide covers the rest.
The full buying process, from offer to title deed, is in our guide on how to buy property in Dubai. You can also browse properties for sale.
Buying in Dubai? Know the real cost before you commit.
From annual service charges to typical rental returns, we can help you compare the running costs of the properties on your shortlist.
Compare property costs with usFrequently asked questions
Use the Service Charge Index on the Dubai Land Department website or the Dubai REST app. Select the project, the usage and the year to see the RERA-approved rates.
The owner, unless the lease says otherwise. The owner remains liable to the building if a tenant who agreed to pay doesn’t.
No. Unpaid service charges are a charge on the unit, and it can’t be sold until they’re paid.
By your unit’s registered area as a share of the building’s total area, which is why approved rates are quoted per square foot.
Yes. The budget is usually approved every year (a few communities now have a fixed three-year budget), so the rate can rise or fall. Owners can’t refuse to pay a charge approved by RERA, but a dispute can go to the Rental Disputes Centre.
Usually, yes. Villas in master communities normally pay a community service charge for shared roads, landscaping, security and facilities. Check the index for the community before you buy.
Before handover there’s usually only the developer’s estimate. The RERA-approved rate comes once the building has an approved budget, so treat early figures as estimates.
Sources
- Dubai Legislation Portal: Law No. 6 of 2019 on jointly owned real property (approval, reserve fund, owners committee, unpaid charges, disputes)
- Dubai Land Department: Service Charge Index (how to look up approved rates)
- Dubai Land Department: request for approval of service charges (audit and RERA approval)
- Mollak (Dubai Land Department): about the system (budgets and payments)
- Dubai Land Department: Service Charge Index calculation (balcony area counted at 25%)
Information checked on 6 November 2026.
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