Dubai property owners pay an annual service charge set by the Dubai Land Department’s (DLD) service charge index, typically ranging from around AED 12 to AED 30 per square foot depending on the community, and rising to AED 60 or more in premium towers such as the Burj Khalifa. On a 1,000 sq ft apartment that is roughly AED 12,000 to AED 30,000 a year, billed separately from your mortgage or rent.
What is a Dubai service charge?
A service charge is the recurring fee every freehold owner pays to run and maintain the shared parts of a building or community in Dubai, UAE. It covers cleaning, security, lift maintenance, common-area electricity, pools, gyms, landscaping and the building’s management. Owners pay it whether the unit is occupied, rented or empty, which makes it the single most overlooked cost of owning Dubai property.
How much are service charges per sq ft in 2026?
Charges are quoted in dirhams per square foot of your unit’s area, then multiplied by your size. The DLD publishes an approved rate for each master community and tower. The table below shows typical 2026 ranges by area, based on the DLD service charge index.
| Community | Typical service charge (AED / sq ft) |
|---|---|
| Dubai Marina | 14 – 28 |
| Downtown Dubai | 17 – 40+ |
| Burj Khalifa (premium) | ~68 |
| Jumeirah Village Circle (JVC) | 10 – 15 |
| Business Bay | 15 – 25 |
Several mid-market communities saw service charges fall 10 to 15 per cent for 2026 as facilities-management costs were re-tendered, so always check the current approved rate rather than an older invoice.
What is the sinking fund and why does it matter?
Part of your service charge is not spent this year at all. Under RERA rules, roughly 15 per cent of the total service charge budget must be set aside in a sinking fund (also called a reserve fund). This money pays for major future capital works such as lift replacement, facade repairs, fire systems and chiller-plant overhauls. A healthy sinking fund protects owners from sudden large special assessments later, so a slightly higher charge with a well-funded reserve can be better value than a cheap building with none.
Chiller and district cooling fees
Air conditioning is often billed on top of the service charge. In communities served by district cooling providers such as Empower or Emicool, common in Downtown Dubai and Dubai Marina, cooling can add roughly AED 2,000 to AED 6,000 a year, split between a fixed capacity charge and your metered consumption. Always ask whether a unit is “chiller free” (cooling included in the rent or charge) before you buy or rent.
How are Dubai service charges set and regulated?
Every owners’ association or management company in Dubai must submit its proposed annual budget to RERA, the regulatory arm of the DLD, for review and approval through the Mollak system before any charge is levied. Mollak is the mandatory portal that processes all residential and commercial service charges, holds the funds in escrow-style accounts and enforces transparency, so owners can see exactly what they are paying for.
How do I dispute a service charge?
If you believe a charge is wrong or unapproved, first request the itemised Mollak budget from your management company. If unresolved, owners can escalate to RERA, which has the authority to review budgets, order corrections and mediate disputes between owners and management companies. Charges not approved in Mollak are not legally enforceable.
Frequently asked questions
Do tenants pay service charges in Dubai?
No. The service charge is the legal responsibility of the property owner in Dubai, not the tenant. Landlords sometimes price it into the rent, but the DLD holds the owner liable.
Are service charges paid monthly or yearly?
They are set as an annual figure but most management companies allow quarterly instalments through Mollak. Unpaid charges can block the sale or transfer of a unit at the DLD.
Can service charges increase every year?
Yes, if RERA approves the new budget, but any rise must be justified and approved through Mollak. Owners can question increases that are not supported by the budget.
Are service charges the same as DLD transfer fees?
No. The 4 per cent DLD transfer fee is a one-off cost paid when you buy. Service charges are a separate, recurring annual cost of ownership.
Bottom line: In Dubai, budget AED 12 to AED 30 per sq ft a year for service charges, plus cooling on top, and treat the sinking fund and Mollak approval as signs of a well-run building. If you are still weighing ownership, our guide on buy vs rent in Dubai 2026 factors these charges in, while our Ejari and RERA tenancy guide covers the rental side and our Dubai real estate prices 2026 outlook shows where values are heading.
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Primary sources: the Dubai Land Department, the Department of Municipalities and Transport, Abu Dhabi and the UAE Government portal.
