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Guide to Service Charges in Dubai

Understanding the essential maintenance and management fees for property ownership.

If you're planning to purchase property in Dubai, it's crucial to understand the additional costs involved, particularly service charges. These fees are essential for the maintenance and management of communal areas and can significantly impact the overall cost of property ownership.

What Are Service Charges?

Service charges are annual fees levied on owners to cover maintenance and repair. They are divided into:

  • General Fund: Routine expenses like security, cleaning, and landscaping.
  • Sinking Fund: Major repairs like elevator overhauls or façade restorations.

Additional charges may apply for district cooling or chiller usage depending on the property.

How are they Calculated?

Charges are calculated on a per-square-foot basis, influenced by:

  • Property Type: Apartments, villas, and retail units have different structures.
  • Location & Size: Premium areas and larger units incur higher rates.
  • Amenities: Access to superior services impacts the overall cost.

Average Rates Across Communities (2024)

Dubai Marina 4.02 - 44.86
Downtown Dubai 6.83 - 56.09
JVC 0.83 - 43.9
Business Bay 2.05 - 34.03
Palm Jumeirah 1.11 - 101.9
Emaar South 3.63 - 33.6

Rates are in AED per sq. ft. based on Property Monitor data.

The Mollak System

Introduced in 2019, Mollak is an electronic platform developed by RERA to enhance transparency. Key features include:

  • Direct Payments: Owners pay into RERA-approved escrow accounts, not to developers.
  • Audited Budgets: Budgets must be audited and RERA-approved before implementation.
  • Transparency: Owners receive detailed breakdowns of all utilized funds.

As of 2025, over 1,240 buildings process approximately AED 4 billion in service charges through Mollak.

Obligations and Consequences

Failure to pay approved service charges can lead to the inability to register Ejari, disruption of utilities, and legal action. It's imperative to settle charges within 30 days of receiving notice.

For detailed information on specific properties, Indus Real Estate specialists are here to guide you using the DLD's Service Charge Index.

RPN: 0045407754

Have questions about service charges?

Our consultants can provide up-to-date RERA index data for your specific property or community.

800-INDUS (46387)