Dubai Service Charges Explained: What You Pay and Why

The short answer

Service charges in Dubai are the annual fees every owner in a jointly owned building or community pays for the upkeep of the shared parts: security, cleaning, lifts, pools, landscaping, common-area utilities, insurance and the management company's fee. Under Dubai Law No. 6 of 2019 on jointly owned property, the yearly budget must be approved by the Real Estate Regulatory Agency (RERA) before owners can be billed, and each owner's share is set by the area of their unit as a ratio of the whole development. Owners can look up the approved rate for any registered project in the Dubai Land Department's Service Charge Index, and pay through the DLD's Mollak system. Unpaid charges stay attached to the unit, which cannot be sold until they are cleared.

What service charges pay for

• Day-to-day running: security, cleaning, waste removal, landscaping, pest control and maintenance of lifts, pools, gyms and car parks.
• Common-area utilities: electricity, water and cooling for corridors, lobbies, gardens and shared facilities. Your own apartment's DEWA and cooling bills are separate.
• Insurance of the building structure and common parts.
• Management: the fee of the RERA-registered management company that runs the development and collects the charges.
• Reserve fund: the law allows a cash reserve for emergencies and for replacing equipment in the common parts. It must be kept in a separate account and, other than in critical emergencies, cannot be spent without RERA's approval.

How your share is calculated

Article 25 of Law No. 6 of 2019 divides the approved annual budget among owners by area: each owner pays in the ratio of their unit's area to the total area of the jointly owned property, using the area recorded in the Land Department's register. In practice the approved budget is published as a rate in dirhams per square foot per year, and your bill is that rate multiplied by your unit's registered area.

The figures above are an example, not a quote. Rates vary widely by community, building age, facilities and the level of service; press coverage of the DLD index puts most residential rates somewhere between about AED 3 and AED 30 or more per square foot. Always check the current approved rate for the specific project before you agree a price.

The developer pays the charges on units it has not yet sold, and on sold units where the sale contract says so. Parking spaces and storage units registered separately may carry their own charges.

Who sets and approves service charges

Service charges are not set freely by the developer or the management company. Under Article 27 of the law, the management entity cannot collect service charges without RERA's approval, and the budget must be checked by an audit firm recognised by RERA. Budgets are submitted and approved through Mollak, the DLD's online system for jointly owned property, which is also used to issue invoices to owners.

Money collected must be paid into a dedicated service-charge bank account within seven working days, and that account cannot be seized by the management company's own creditors. Once at least 10% of units are registered to owners, RERA can appoint an owners' committee of up to nine members, which meets every three months and works with the management company on the budget and the quality of services.

How to check the service charge for a property

1. Open the Service Charge Index on the Dubai Land Department website or in the Dubai REST app.
2. Choose the project, the type of use (for example residential) and the year.
3. Read the approved rate and the breakdown by budget heading. Owners looking up their own unit can search using title deed details.

Compare the index rate with what the seller or agent has quoted, and ask the seller for the latest statement showing that the unit has no outstanding balance.

Paying service charges

Invoices are issued through Mollak, and owners usually pay the management company quarterly, half-yearly or yearly, depending on the development. Payments go into the project's service-charge account, not to an individual. If you let the property, the charges remain the owner's legal responsibility: the law says the owner stays liable even if a lease makes the tenant responsible and the tenant does not pay. Most Dubai leases leave service charges with the landlord; our landlord's guide covers the costs of letting.

What happens if service charges are not paid

• An owner may not withhold service charges that RERA has approved, even when unhappy with the services.
• The management entity has a lien on the unit, and the unit cannot be sold until the charges are paid.
• After a written notice approved by RERA, the owner has 30 days to pay. After that, the claim can go to the execution judge at the Rental Dispute Settlement Centre.
• If it is still unpaid, the execution judge can order the unit sold at public auction to recover the charges, with the owner also bearing court costs and legal fees.
• The developer or management company may not block an owner's access to the unit or the common parts to force payment outside these procedures.

If you disagree with the charges or the quality of service, raise it with the management company and the owners' committee, then with RERA, while continuing to pay.

Service charges when you buy

• Ready property: the seller must clear all outstanding service charges before transfer; the law does not allow a unit to be sold while its charges are unpaid. See the full costs of buying in Dubai.
• Off-plan: charges start once the unit is handed over. Ask the developer for the projected budget and compare it with similar completed buildings. See how off-plan buying works.
• Investment yield: service charges come straight off rental income. A unit with a slightly lower price but a high rate per square foot can return less than a dearer unit in a better-run building.
• Buying from abroad: our guide for foreign buyers covers the transfer process step by step.

How LMG helps

LMG Properties is a Dubai-based real estate firm offering residential and investment property across Dubai, the UAE and selected international markets. Before you commit, the team sets out the full cost of owning a property, including its approved service charge, alongside the price and expected rent, so you can compare homes on what they really cost. See our Dubai and UAE property page and our services.

Questions

What are service charges in Dubai?

Service charges are annual fees paid by every owner in a jointly owned building or community for the upkeep of shared areas, such as security, cleaning, lifts, pools, landscaping, common-area utilities, insurance and the management company's fee. They are governed by Dubai Law No. 6 of 2019 and must be approved by RERA.

How are service charges calculated in Dubai?

The RERA-approved annual budget is divided among owners by area: each owner pays in the ratio of their unit's registered area to the total area of the development. In practice this is a rate per square foot per year, so a 1,200 sq ft unit at AED 15 per sq ft pays AED 18,000 a year.

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

Use the Service Charge Index on the Dubai Land Department website or the Dubai REST app. Choose the project, the type of use and the year to see the approved rate and its breakdown. Compare it with the figure the seller or agent has quoted.

Who pays service charges, the landlord or the tenant?

The owner. Under Law No. 6 of 2019 the owner remains liable for service charges even if a lease makes the tenant responsible and the tenant does not pay. Most Dubai leases leave service charges with the landlord.

What happens if I do not pay service charges in Dubai?

The management entity has a lien on the unit and it cannot be sold until the charges are paid. After a RERA-approved written notice, the owner has 30 days to pay; after that the claim can be enforced by the execution judge, who can order the unit sold at public auction.

Can the developer increase service charges whenever it wants?

No. The management entity may not collect service charges without RERA's approval, the budget must be checked by a RERA-recognised audit firm, and approved budgets are recorded on the DLD's Mollak system. Owners can raise concerns with the owners' committee and with RERA.

Do off-plan buyers pay service charges before handover?

Service charges normally start once the unit is handed over to the buyer. Until a unit is sold, the developer pays the charges on it, and the sale contract can also make the developer responsible for a period after sale.

Legal points summarised from Dubai Law No. 6 of 2019 concerning ownership of jointly owned real property (Articles 16, 22, 25, 27 to 30 and 32) and the Dubai Land Department's Service Charge Index service, checked on 2026-10-13. Rate ranges are indicative and the worked example is illustrative. This page is general information, not legal or financial advice.