Insights · AXD Real Estate Dubai
Service Charge Dubai — Annual Property Management Costs
What are service charges for Dubai properties?
Service charges are the annual apportionment for common facilities, measured in AED per sq.ft of owned area and approved by RERA. They cover security, cleaning, cooling, elevators, pool, gym, insurance and reserve fund. Set by the Owners Association and published in RERA's Mollak portal.
Typical ranges 2026 (AED/sq.ft p.a.)
| Asset type | Example communities | AED/sq.ft |
|---|---|---|
| Mid-Market Apartment | JVC, Town Square, Dubai South | 12–18 |
| Premium Apartment | Downtown, Marina, Business Bay | 18–28 |
| Ultra-Luxury Apartment | Palm Jumeirah, Bluewaters, Emaar Beachfront | 25–45 |
| Villa Community | Dubai Hills, Arabian Ranches, Tilal Al Ghaf | 4–10 |
Source: RERA Service Charge Index (Mollak) 2025/2026. AXD own research and investor memo reconciliation.
What the apportionment contains
- Management Fee (OAM fee)
- Master Community Fee (share of masterplan infrastructure)
- Insurance (building and liability insurance)
- Utilities (cooling fixed share, common electricity)
- Cleaning & Security
- Reserve Fund (5–10 % for capex and major repairs)
Verification before purchase
- Request the current service charge assessment in the Mollak portal
- Review the OA budget of the last 3 years (development & volatility)
- Check cooling provider and contract structure (Empower, Tabreed, Emicool)
- Clarify open arrears against the previous owner (Mollak statement) before title transfer
For rented units, additionally check the Ejari tenancy registration with the DLD — service charge apportionment and tenancy are administratively linked.
Sources
- Dubai Law No. 27 of 2007 (Ownership of Jointly-Owned Properties)
- Dubai Law No. 6 of 2019 (Replacement JOP Law)
- RERA Service Charge Index — Mollak Portal
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