Service Charges in Dubai: What They Cover and How to Check Them Before You Buy

A service charge is the yearly fee that owners in a Dubai building or community pay for the upkeep of shared areas and services. It is one of the biggest running costs of an apartment, and it can change your real return, so check it before you buy.

This guide explains what service charges normally cover, who sets them, what to ask for, and how to compare two buildings fairly.

What Service Charges Usually Cover

Cleaning, landscaping and maintenance of common areas.
Lifts, pumps, air-conditioning of shared spaces and other building systems.
Security, reception and access control.
Shared facilities such as pools and gyms.
Building insurance for the structure and common parts.
A reserve fund for major repairs and replacement.

Charges are normally shown as an amount per square foot of the unit each year, and they differ widely from one building to another. Do not use an average. Ask for the figure for the exact building and unit.

Who Sets and Oversees Them

Service charges are set through a budget prepared by the developer's management company or the owners' association, and the Real Estate Regulatory Agency (RERA), part of the Dubai Land Department (DLD), oversees the rules. Owners can ask to see the budget and the accounts. Ask the agent or the management company how the charge was set and when it was last reviewed.

How to Check a Building's Charges

Ask for the latest service charge statement for the unit, including any arrears.
Ask for the approved budget for the current year and the charge per square foot.
Ask about the reserve fund and whether any major works are planned.
Ask who manages the building and how quickly problems are fixed.
Check what is excluded. Some utilities, such as district cooling, can be billed separately.

Why Arrears Matter at Resale

When a unit is sold, the developer or management company normally needs to confirm that service charges are paid before a transfer can go ahead. If the seller has arrears, they have to be settled. As a buyer, ask for written confirmation that the account is clear.

Compare Buildings on Net Return

A cheaper flat with a high service charge may leave you with less income than a slightly dearer flat with a low one. Take the annual rent you expect, subtract the service charge and other running costs, and compare the net figure, not the headline rent.

Questions to Ask Before You Sign

What is the service charge per square foot this year and last year?
What does it include and exclude?
Are there any arrears or planned special levies?
How much is in the reserve fund?
Are there separate charges for cooling, parking or amenities?

Why Choose Banke Properties?

Banke Properties lists and advises on property across Dubai, Abu Dhabi, Ras Al Khaimah, Doha, London and Mumbai, so a decision can be compared with the alternatives in one conversation. Our team explains the paperwork, the costs and the timelines in plain language, and tells you when a deal is not worth doing.

Talk to Banke Properties

If you would like help with checking the running costs of a Dubai property, contact the Banke Properties team and tell us your budget, timeline and what you are trying to achieve.

Disclaimer: This article is general information, not legal, tax or financial advice. Charges and rules vary by building and change over time, and we have not quoted figures. Please confirm current details with the Dubai Land Department, the management company and a qualified professional before you commit money.

Have a property question?

Your Global Real Estate Partner