Dubai property service charges, explained properly.
Service charges are mandatory, regulated, and — done right — genuinely transparent, thanks to RERA's Mollak platform. What catches buyers out isn't the system itself, it's the gap between what's disclosed at launch and what the building actually settles on once it's registered and operating.
This guide covers how charges are calculated and regulated, real per-square-foot ranges by area, and specifically what launch-stage estimates tend to leave out.
- AED 3–70+ per sqft/year — the full range across Dubai, median around AED 17
- Regulated under Law No. 6 of 2019, approved annually by RERA via Mollak
- Off-plan units often lack an approved Mollak budget — launch-stage figures are estimates
- Owners remain liable even if a tenant fails to pay, unless the lease says otherwise
- Non-payment can block resale or refinancing of the unit
How service charges are set and approved
Every freehold building sits under an Owners' Association (OA) registered with RERA. The OA proposes an annual budget; RERA reviews and approves it; Mollak publishes and enforces it.
Under Dubai Law No. 6 of 2019 (Jointly Owned Property Law), every owner in a jointly owned development is legally obligated to pay approved service charges — this isn't discretionary. Each year, the property manager or OA submits a proposed budget covering operations, management fees, and reserve fund contributions; this is audited before final RERA approval, then published through Mollak, which routes every dirham into a regulated escrow account. No manager can raise fees mid-year without DLD approval, and overcharging carries penalties up to licence revocation.
Typical rates by property type and area
| Property type / area | Typical AED/sqft/year |
|---|---|
| Villas and townhouses | AED 2–7 |
| Mid-market apartments (JVC, Dubai Sports City) | AED 11–16 |
| Standard apartments, Dubai-wide median | ~AED 17 |
| Higher-end apartments, general range | AED 12–30 |
| Branded waterfront (Palm Jumeirah, Downtown) | AED 25–35 |
| Ultra-premium towers (e.g. Burj Khalifa) | AED 60+ |
Where the money goes
Typically the largest single line item in a service charge budget.
Set aside for the building's long-term facade, lift, and major-systems overhaul cycle, typically on a roughly 10-year horizon.
Cleaning (15–20%), landscaping (5–10%), and management fees (5–10%) make up the remainder of a typical budget.
What off-plan estimates typically leave out
Off-plan units generally don't have an approved Mollak budget at the point of sale — the building hasn't registered its Owners' Association yet, since it doesn't exist as a functioning community. Any service charge figure quoted at launch is an estimate, not an approved rate, and typically defaults to the area median rather than a figure specific to that building's actual amenity package.
Two things worth asking about specifically before reserving: whether a separate master community charge applies on top of the building-level figure quoted, and whether any first-year rate mentioned is a genuine steady-state estimate or a promotional figure that resets once the OA registers post-handover.
- Is this figure an approved Mollak rate, or a pre-registration estimate?
- Is there a separate master community charge not included in this number?
- Is this a genuine steady-state rate, or a promotional first-year figure?
- What amenities does this building have that similar-rated buildings in the area don't?
Consequences of non-payment
Service charges are not optional, and liability rests with the owner regardless of whether the unit is rented out — under Article 16(b) of Law No. 6 of 2019, an owner isn't discharged from liability just because a tenant failed to pay, unless the lease agreement explicitly says otherwise. Unpaid charges escalate through late fees and legal notices, and can ultimately result in a registration block preventing the owner from selling or refinancing the unit until the balance is cleared.
Sizing service charges across real Dubai developments
Mid-market — DG1 Living
A waterfront community at this tier likely sits above pure mid-market rates given the amenity package — worth confirming the specific approved figure rather than assuming a generic mid-market range applies.
Branded ultra-prime — DO Hotels & Residences, Dubai Islands
Branded hospitality-linked developments typically run toward the top of the range given hotel-standard service levels — factor this into net yield calculations at this tier specifically, not just the headline rental figure.
Service charges are one line item in the wider ownership cost picture. See our Dubai investment guide et le Dubai ownership framework for the full cost picture beyond service charges alone.
A licensed international advisory built on formal professional standards
Tropical Riviera International Realty is a licensed international real estate advisory. Bhavesh Koonja, our principal broker, holds both the REALTOR® and Certified International Property Specialist (CIPS) designations through the National Association of REALTORS® — credentials that carry a formal code of ethics and fiduciary standard, not just a sales licence, and that apply to how we advise wherever we practice internationally.
We verify service charge figures against Mollak and the DLD Service Charge Index before presenting them to clients, rather than repeating launch-stage estimates as settled numbers. See our Immobilier international overview and Conseil immobilier international approach for how this fits our wider ten-market coverage.
Contactez-nous maintenant via WhatsApp (+230 5256 5725)- REALTOR® (AGENT IMMOBILIER) — National Association of REALTORS®
- Spécialiste certifié de la propriété internationale (CIPS) — NAR designation
- Bilingual — English and French advisory
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Dubai service charges FAQ
How much are service charges in Dubai?
They range from roughly AED 3 to over AED 70 per square foot per year, with a Dubai-wide median around AED 17. The exact figure depends heavily on building type, amenities, and location — always confirm the specific approved rate for a building via Mollak.
Who regulates Dubai service charges?
RERA (the Real Estate Regulatory Agency) approves annual budgets under Dubai Law No. 6 of 2019, and the Mollak platform publishes and enforces the approved rates, routing collected funds into a regulated escrow account.
Why don't off-plan units have a fixed service charge at launch?
Off-plan buildings typically don't have an approved Mollak budget yet, since the Owners' Association hasn't registered and the building isn't operating. Launch-stage figures are estimates, often defaulting to the area median rather than a building-specific approved rate.
Do I still owe service charges if my tenant doesn't pay rent?
Yes. Under Article 16(b) of Law No. 6 of 2019, the owner remains liable for service charges even if a tenant fails to pay, unless the lease agreement explicitly states otherwise.
What happens if I don't pay my Dubai service charges?
Non-payment escalates through late fees and legal notices, and can ultimately result in a registration block that prevents you from selling or refinancing the unit until the balance is settled.
Get the verified figure before you reserve
Tell us which development you're considering, and we'll confirm the actual approved or estimated service charge against Mollak before you commit.
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