Money and paperwork · Service charges

Service charges in Dubai: what owners pay, who sets it, and how to check it

Every owner of a unit in a jointly owned property in Dubai, whether a flat, an office or a shop in a building or a villa in a community with shared parts, pays a service charge every year, whether the unit is lived in, let or empty. Here is what it pays for, who approves it, how your share is worked out, what buildings charge, what comes on top, and how to look up the approved figure for a building before you buy.

Oston Property Investment · Last reviewed 13 October 2026

We are a Dubai brokerage (RERA ORN 62268). We earn our commission when someone buys through us, and when a client takes a mortgage through a mortgage company we work with, that company pays us a small referral commission once the loan is issued. We manage no building and collect no service charges. Every rule on this page comes from Dubai’s law or the bodies that apply it: the Land Department, RERA and the Rental Disputes Centre. The cooling tariff is Empower’s own, and the VAT position is the UAE government’s. Figures for particular buildings and areas, and two practical steps, come from brokers, portals, a newspaper and a law firm, named with each; the list of sources gives every date. We read them all on 12 October 2026. This is general information, not legal or tax advice.

The short version

The owner pays, every year. Dubai’s law on jointly owned property makes each owner pay a share of the building’s yearly service charges, worked out on the unit’s area as recorded in the property register. A lease can pass them to the tenant, but if the tenant does not pay, the owner still owes them.
Nobody may charge an amount RERA has not approved. The management company draws up a budget, an auditor RERA recognises checks it, and RERA approves it, or a temporary budget meanwhile; only then may owners be invoiced, through the Land Department’s Mollak system.
You can look up the approved figure. The Land Department’s Service Charge Index shows the approved charges of jointly owned projects, by project, use and year, on its website or in the Dubai REST app; the Land Department lists the service as immediate and open to all.
It varies more by building than by area. Published figures run from under AED 3 per sq ft a year in some villa communities to almost AED 68 in Burj Khalifa. In the same district, one tower can cost four times another.
Some costs come on top. A master community’s charges may be a line inside the building’s figure or a separate invoice, and where a district-cooling company such as Empower cools the building, it bills the unit itself.
Off-plan, the figure is an estimate. A buyer of a residential unit on the preliminary register owes the charges from the project’s completion, even before ownership is transferred.
Unpaid charges stop a sale. The management company holds a lien on the unit, it cannot be sold until the charges are paid, and unpaid charges can end in a public auction ordered by the Rental Disputes Centre’s execution judge.

What the service charge is, and what it pays for

The law’s definition. Service charges are the yearly charges collected from owners “to cover the cost of management, operation, maintenance, and repair of Jointly Owned Real Property”. The law covers buildings and land divided into units or plots for individual ownership, so a villa community with shared parts is covered too, and units of every use: flats, villas, offices, shops.

What the money may be spent on. The law lists what it may pay for, among them: cleaning and security of the common parts, their operation, maintenance and repair, the building’s insurance, the auditor, RERA’s inspection fees, the management company’s fee as RERA sets it, and “a cash reserve to cover emergency expenses, or to replace equipment and devices in Common Parts”, kept in a separate account. The insurance premium is part of the service charge. The money sits in a separate bank account for the property, which the management company’s creditors cannot seize.

What a breakdown looks like. Bayut has published the breakdown of one building’s charge, RP Heights in Burj Khalifa District, in AED per sq ft a year; it does not say which year the figures are for:

RP Heights, Burj Khalifa District, apartments, AED per sq ft a year, as published by Bayut (updated 15 September 2026); Bayut names neither the source nor the budget year. ‘Income’ is a credit.
Line	AED per sq ft
Services	2.49
Maintenance	2.77
Improvement	0.40
Utilities services	7.32
Management services	0.72
Insurance	0.72
Master community	1.38
Income	−0.04
General Fund	15.76
Reserved Fund	0.52
Total	16.28

Here the master community’s charge is a line inside the building’s figure. So is a utilities line, the largest; Bayut does not say what it covers, and in a chiller-free building it can include cooling, so ask. The “Reserved Fund” line is the building’s cash reserve; the “General Fund” is the rest.

Who sets it, and who approves it

The management company runs the building and draws up the budget. In ordinary projects it is a specialised company RERA selects; in projects designated as major projects, the developer; in hotel projects, a hotel management company. Until a management company is appointed, the developer manages.

RERA approves it, after an auditor. A management company “must not charge Owners, or collect from them, any amounts whatsoever” for the common parts without RERA’s approval, and RERA approves a budget only once an audit firm it recognises has approved it; it may approve a temporary budget meanwhile. The Land Department’s budget service asks for the audit, the evaluation of at least three tenders for each service provider, and the contracts.

Owners can see and question it, but not decide it. An owners committee of up to nine resident owners, appointed by RERA once 10% of the units are registered, reviews the budgets and takes complaints to RERA if the management company has not answered them within 14 days. Owners cannot replace the management company themselves; in projects whose manager RERA selected, the committee can ask RERA to. See owners committee.

Since December 2025, a budget can be fixed for three years. The Land Department approved its first three-year fixed service-fee budget, for the Palm Jumeirah master community, to “stabilise service fees”; RERA’s chief executive said all community management companies in Dubai can use it, and the one-year budget remains. A new approved budget can be lower as well as higher.

Your share is the approved rate per sq ft times your unit’s area as recorded in the Real Property Register, the Land Department’s register, not the area in an advert. If the area you are given is in square metres, multiply by 10.764 to get square feet. Take a one-bedroom flat of 750 sq ft in a building approved at AED 15 per sq ft, about Driven’s Business Bay average: it pays AED 11,250 a year. The invoices come through Mollak; the Land Department’s Mollak page speaks of quarterly invoices.

Paying from abroad. The invoices reach you through Mollak, so keep the contact details registered for the unit ones you read, and ask the management company how it can be paid online. Pay each invoice as it comes: arrears stop a sale, and an owner taken to the execution judge pays the court costs as well.

Is VAT added? The UAE government’s guide to VAT on property lists “Owners associations and other related services” among the services related to buildings that are subject to VAT. Look at your Mollak invoice to see how it is shown.

What buildings charge

We found no official figures by area; the Index gives each project’s approved figure. What one broker publishes, without saying which budget year its figures come from:

Driven Properties’ published figures for apartments and villa communities, AED per sq ft a year; the page is undated and names no approved budget year; read on 12 October 2026. Indicative only: look up the building in the Land Department’s Service Charge Index.
	AED per sq ft a year
Burj Khalifa	67.88
The Address Downtown	60.00
Dubai Marina, average	16.10
JBR	15.40
Business Bay, average	14.75
JLT	13.65
Jumeirah Golf Estates, villas	6.24
Dubai Hills Estate, villas	3.50
Arabian Ranches 1, villas	3.08
Arabian Ranches 2, villas	2.44

The building matters more than the area. In the same district, Bayut gives RP Heights at AED 16.28 and Driven gives Burj Khalifa at AED 67.88; neither names the budget year. Engel & Völkers lists a Palm Jumeirah building, Golden Mile 1, at AED 14.77 per sq ft, and a JVC building, Belgravia II, at AED 15.04. Driven notes that two towers on the same street can differ by AED 20 per sq ft, and names age, amenities and the cooling system as what moves the figure. So look up the building you are offered, not its area.

Villa communities pay less per sq ft. Driven’s figures for villa communities run from AED 2.44 to AED 6.24, and for Arabian Ranches, Dubai Hills Estate and The Villa from AED 2.44 to AED 3.50. In Bayut’s example from DAMAC Hills 2, the master community’s line is AED 2.15 of a total of AED 3.77.

Offices. We found no reliable published figures by area. Gulf News describes the Index’s choice of use as office, residential or retail: look up the tower you are offered. In an office let, whether the rent includes the service charge is a matter for the lease; more in our office guide.

What comes on top

The master community. A master developer may charge owners usage charges for the community’s shared facilities, and they too need RERA’s approval of an audited budget. In some buildings they are a line inside the building’s figure, as in Bayut’s examples; ask the seller or the management company whether a separate master-community invoice comes as well.

District cooling. Where a district-cooling company cools the building, it bills the unit separately. Empower, for example, charges a capacity charge of AED 750 per refrigeration ton a year, billed monthly in advance; its own example, a unit of 6 tons, pays AED 4,500 a year, before the charge for the cooling used, meter fees and 5% VAT. Some buildings are let or sold as “chiller-free”, with no cooling bill for the unit; ask whether the cooling is then inside the service charge, and check you are not paying for it twice.

Electricity and water go on the DEWA account of whoever holds it, the tenant if the unit is let. See Every year you own it.

If you let the property

Unless the lease says otherwise, the owner pays the service charges; and even where it says the tenant pays, the owner “may not be discharged” if the tenant does not. In our letting guide’s example, a 750 sq ft flat in Business Bay let for AED 100,000 a year, the service charge takes AED 11,250 of the rent. Empower’s capacity charge is a yearly charge per ton, billed monthly in advance, so agree who holds the cooling account while the unit is let, and count on paying it yourself while it is empty. More in letting from abroad.

How to look it up, and read the result

Open the Service Charge Index. On the Land Department’s website or in Dubai REST, choose the project, the use and the year; the result is immediate. Gulf News describes a search by title deed number as well, and a result that shows which company manages the property and the breakdown of the charge.
Choose the use you are buying. In a mixed building, homes, offices and shops can have different rates.
Take the latest year, and the one before. A steep rise shows costs catching up; ask why.
Read the lines. The total is what you pay per sq ft. A master-community line, if there is one, means that charge is already included; an “Income” line is a credit.
Look at the reserve. The law sets no size for it, and where it cannot cover an emergency expense, owners can be asked, with RERA’s approval, to pay it on top. A small reserve line in an older building is the warning sign.
Multiply by the unit’s registered area.

Off-plan: when you start paying

The developer pays the service charges on units it has not sold, and on sold units where it has promised to pay them for the buyer. For a buyer, the Rental Disputes Centre set a principle in October 2025: a buyer of a residential unit whose name is on the preliminary register owes service charges “from the date of project completion or from the moment of default on payment obligations”, even before ownership is transferred. So read the handover clause of your sale and purchase agreement, and do not put off taking a finished unit to save the charge: it will not.

Before you buy off-plan, ask for the developer’s estimate in writing, whether the developer pays the charges for any period after handover, whether the building will be on district cooling, and which master community it sits in. The estimate is not the budget RERA approves, and the first approved budget can differ.

If you do not pay

An owner “may not refrain from paying” approved charges. The management company holds a lien on the unit, and the unit “may not be disposed of” until they are paid. If they are still unpaid 30 days after a written notice approved by RERA, the claim can be enforced before the Rental Disputes Centre’s execution judge, who may order the unit sold at public auction. The Centre’s e-service for these claims asks for the enforcement writ “along with notification issued by Mollak System”. The law sets no late fee, but an owner who defaults pays the court fees and lawyers’ fees the execution judge sets. Outside these procedures, the law does not let the developer or the management company stop you taking possession of, or using, your unit to make you pay.

If you think it is wrong

Compare your invoice with the Index. An amount RERA has not approved may not be charged.
Write to the management company, saying exactly what you dispute, and ask for the breakdown; Chambers and Partners’ guide to service-charge disputes sets out these steps.
Complain to RERA, through Dubai REST, or through the owners committee if your building has one; the committee takes complaints to RERA after 14 days without an answer.
Keep paying the approved charge while you dispute it: refusing is not allowed, and arrears stop a sale.
Disputes under the law go to the Rental Disputes Centre, which has exclusive jurisdiction.

Older buildings

Dubai’s Law No. 3 of 2026 on building quality and safety requires buildings to obtain a quality and safety certificate 20 years after their completion certificate, and younger ones to be maintained periodically; in a jointly owned building, the management company carries out these duties, “without prejudice to the Owner’s liability for the payment of any fees, charges, and any other amounts”. The law on jointly owned property sets no size for the reserve, and where it falls short, owners can be asked, with RERA’s approval, to cover the expense. If you buy in an older tower, ask the management company what it expects to spend.

Claims you will meet, checked

“The developer sets the service charge.” Not on its own: RERA approves an audited budget first.
“Service charge increases are capped at 5% a year.” We found no such cap in the law or in the Land Department’s announcements. The control is the approved, audited budget, and since December 2025 an optional three-year fixed budget.
“The tenant pays the service charge.” Only if the lease says so, and the owner still owes it if the tenant does not pay.
“Service charges are governed by Law No. 27 of 2007.” That law was repealed: Law No. 6 of 2019 replaced it.
“Arabian Ranches costs AED 10 to 18 per sq ft.” Driven gives AED 3.08 for Arabian Ranches 1 and AED 2.44 for Arabian Ranches 2; its villa-community figures run from AED 2.44 to AED 6.24. A range like that fits a flat, not a villa.
“You can stop paying while you dispute it.” No: approved charges must be paid.

Before you buy: eight checks

The building’s approved rate in the Service Charge Index, for the latest years.
The unit’s registered area; ask for the title deed.
The master community: inside the building’s figure, or a separate invoice?
Cooling: district cooling, with its capacity charge, or chiller-free, and then where the cooling is paid?
The seller’s statement of account in Mollak: nothing owed.
The reserve fund line, and the building’s age.
If you will let it: the service charge in your net rent, since the owner pays it.
Off-plan: the developer’s estimate in writing, the handover clause, and whether the developer pays the charges for any period.

Questions and answers

Who pays service charges in Dubai, the owner or the tenant?

The owner. Dubai’s law on jointly owned property lets a lease make the tenant pay, but if the tenant does not, the owner still owes the charges.

How are service charges calculated in Dubai?

The approved rate per sq ft, times the unit’s area as recorded in the Real Property Register. The management company draws up the budget, an auditor RERA recognises checks it, and RERA approves it before owners are invoiced through Mollak.

How do I check the service charge of a building in Dubai?

In the Land Department’s Service Charge Index, on its website or in the Dubai REST app: choose the project, the use and the year. Multiply the rate by the unit’s registered area, and ask the seller for the latest Mollak statement of account.

What is a normal service charge per sq ft in Dubai?

It depends on the building more than the area. Driven Properties’ published figures, which name no budget year, run from AED 2.44 per sq ft a year in Arabian Ranches 2 to AED 67.88 in Burj Khalifa, with Dubai Marina at AED 16.10 and Business Bay at AED 14.75 on average. Look up the building you are offered.

Can service charges go up every year?

Only by a new budget that an auditor has checked and RERA has approved, and a new budget can also be lower. We found no fixed cap on increases. Since December 2025, a management company can have a three-year fixed budget approved through Mollak instead of a yearly one.

Are master community fees and district cooling included?

Not always. A master community’s charge is sometimes a line inside the building’s figure and sometimes a separate invoice. Where a district-cooling company cools the building, it bills separately: Empower charges AED 750 per refrigeration ton a year for capacity, plus what you use, a meter fee and VAT.

When do I start paying service charges on an off-plan property?

The developer pays on units it has not sold, and on sold units where the sale contract says it will. In October 2025 the Rental Disputes Centre set the principle that a buyer of a residential unit on the preliminary register owes them from the project’s completion, or from a default on payments, even before ownership is transferred. Read the handover clause of your sale and purchase agreement.

What happens if I do not pay service charges in Dubai?

The unit cannot be sold until they are paid. If they are still unpaid 30 days after a written notice approved by RERA, the claim can be enforced before the Rental Disputes Centre’s execution judge, who may order the unit sold at public auction. The law sets no late fee, but the defaulting owner pays the court and lawyers’ fees the judge sets.

Can I dispute a service charge?

Yes: compare the invoice with the Index, write to the management company, then complain to RERA, directly or through the owners committee. Disputes under the law go to the Rental Disputes Centre. Keep paying the approved charge meanwhile.

Is there VAT on service charges in Dubai?

The UAE government’s VAT guide on property lists owners associations’ services among the building services subject to VAT. Your Mollak invoice shows whether and how it is charged.

Related guides

Sources · 15

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Service charges in Dubai: what owners pay, who sets it, and how to check it

The short version

What the service charge is, and what it pays for

Who sets it, and who approves it

How your share is worked out

What buildings charge

What comes on top

If you let the property

How to look it up, and read the result

Off-plan: when you start paying

If you do not pay

If you think it is wrong

Older buildings

Claims you will meet, checked

Before you buy: eight checks

Questions and answers

Who pays service charges in Dubai, the owner or the tenant?

How are service charges calculated in Dubai?

How do I check the service charge of a building in Dubai?

What is a normal service charge per sq ft in Dubai?

Can service charges go up every year?

Are master community fees and district cooling included?

When do I start paying service charges on an off-plan property?

What happens if I do not pay service charges in Dubai?

Can I dispute a service charge?

Is there VAT on service charges in Dubai?

Related guides

Sources · 15

Send us the building