Dubai Service Charges Explained
What Dubai service charges are, how they are calculated per square foot, what they cover, and how they reduce net rental yield for investors.
Bellokey Editorial Team
Short answer: Service charges are annual fees owners pay for maintaining a building or community, usually billed per square foot of your unit. They cover common-area upkeep, security, cooling in some districts and shared facilities, and they reduce your net rental yield, so check them before you buy.
How are service charges calculated in Dubai?
Charges are typically set per square foot of the unit's area, based on the building's approved budget. Rates differ between buildings and communities, and are reviewed by the regulator for registered projects. Ask the seller for the latest service charge statement.
What do they cover?
- Cleaning, maintenance and repairs of common areas.
- Security and concierge.
- Pools, gyms and landscaping.
- Reserve fund for major works, and cooling charges in some districts.
Why service charges matter for investors
They are a fixed yearly cost that lowers net yield, especially on small or luxury units. Include them in your calculation: rental yield and ROI.
Other running costs
Utility connection and deposits, home insurance and maintenance. Estimate mortgage payments with the calculator.
Related: how to buy property in Dubai, Dubai market and prices, is it safe to invest, the Dubai mortgage calculator and our Dubai city guide. Figures change, so confirm current rules with official sources. This is general information, not financial or legal advice.
Frequently asked questions
What are property service charges in Dubai?
Annual fees owners pay for building or community maintenance, usually billed per square foot.
How is service charge calculated in Dubai?
Typically per square foot based on the building budget; ask for the latest statement.
What are typical maintenance fees?
They vary by building and community; check the actual rate for the property you are considering.
Do service charges affect rental yield?
Yes, they are a fixed cost that lowers net yield, especially for small or luxury units.
Are utility deposits included?
No. Utility connection and deposits are separate costs.
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