Service Charges for Properties in Dubai: An Overview

Service Charges for Properties in Dubai: An Overview

In Dubai, property owners are required to pay service charges to maintain and manage the common areas and facilities of their buildings or communities. These charges vary based on the type of property, its location, and the services provided. Here’s a breakdown of what service charges entail, how they’re calculated, and what they typically cover.

1. What Are Service Charges?

Service charges are fees paid by property owners to fund the maintenance, management, and upkeep of common areas within a building or community. These fees are generally collected by the Owners’ Association (OA) or the property management company in charge.

These charges apply to:

• Apartments

• Villas

• Townhouses

• Office spaces

• Mixed-use developments

2. What Do Service Charges Cover?

Service charges contribute to the maintenance and management of shared areas and facilities in the building or community. Common inclusions are:

• Regular cleaning and upkeep of communal areas like lobbies, corridors, and elevators

• Security services, including 24/7 personnel, CCTV surveillance, and access control systems

• Landscaping and maintenance of gardens, parks, and outdoor spaces

• Maintenance of shared amenities such as swimming pools, gyms, and recreational facilities

• Utilities for common areas, including lighting, water, and electricity

• Building maintenance, covering structural repairs and services like plumbing, electrical work, and painting

• Waste management services, including garbage collection and disposal

• Insurance for common areas in the building or community

3. How Are Service Charges Calculated?

Service charges are typically determined based on the size of the property (measured in square feet) and the range of services provided within the community or building. The Dubai Land Department (DLD), through the Real Estate Regulatory Agency (RERA), governs and ensures transparency in service charge calculations to maintain fairness.

Key factors influencing service charges include:

• The size of the property (per square foot)

• The number and quality of amenities available

• The property’s location, with high-demand areas typically having higher charges

RERA reviews and approves service charges annually, based on the budget submitted by the Owners’ Association.

4. Average Service Charges in Dubai

Service charges can differ significantly depending on the property type and location. Here’s a general guide to average service charges in Dubai:

• Apartments: AED 10 to AED 25 per square foot annually, depending on the area and amenities

  • Luxury apartments (e.g., in Downtown Dubai, Dubai Marina): AED 20 to AED 30 per square foot

  • Affordable apartments (e.g., in JVC, International City): AED 10 to AED 15 per square foot

• Villas: AED 2 to AED 5 per square foot annually, as villas have fewer shared facilities than apartments. For instance, a 3-bedroom villa in Arabian Ranches may incur service charges of AED 5,000 to AED 7,500 per year.

• Townhouses: AED 3 to AED 5 per square foot annually, based on community features and location

• Offices/Commercial Properties: AED 10 to AED 20 per square foot, depending on services and maintenance level

5. Examples of Service Charges in Popular Areas

Here are some examples of service charges in key Dubai communities:

• Downtown Dubai: AED 20 to AED 30 per square foot

• Dubai Marina: AED 15 to AED 25 per square foot

• Jumeirah Village Circle (JVC): AED 10 to AED 15 per square foot

• Palm Jumeirah: AED 15 to AED 25 per square foot

• Dubai Silicon Oasis: AED 9 to AED 14 per square foot

• International City: AED 5 to AED 10 per square foot

6. Payment of Service Charges

Service charges are typically paid annually or in two installments. Property owners who fail to make these payments may face penalties, and their access to shared amenities may be suspended. In cases of prolonged non-payment, legal action may be taken.

7. How to Check Service Charges

To verify service charges for any property in Dubai, you can use the RERA service charge index:

• Visit the Dubai Land Department (DLD) website or download the Dubai REST app

• Enter the property details, such as location and size, to estimate the approved service charge rates

8. Can Service Charges Increase?

Yes, service charges can increase if the cost of maintaining the property or community rises. Any increase in service charges must be justified and approved by RERA, with the Owners' Association submitting a budget that outlines the reasons for the increase.

9. How to Dispute Service Charges

If property owners feel the service charges are too high or unfairly increased, they can file a complaint with RERA. The agency will review the charges and the Owners' Association’s budget to ensure compliance with the law.

Conclusion: Budgeting for Service Charges in Dubai

When purchasing property in Dubai, it’s important to factor service charges into your budget as part of the ongoing ownership costs. These charges can vary widely depending on the property type, location, and amenities, so it’s essential to check the service charges before finalizing your purchase.

For more guidance on service charges and understanding the full cost of owning property in Dubai, get in touch with Elita Homes Real Estate Brokers LLC. We’re here to assist you in making informed decisions and ensuring your property investment is well-planned.