Owning a Dubai property isn't just the mortgage. Every year you also pay service charges — the cost of running the building and its amenities. They're easy to overlook and can be a meaningful sum, so factor them in before you buy.
What service charges cover
Service charges fund the upkeep of everything you share with other owners:
- Security, concierge and cleaning of common areas
- Lifts, lighting and building systems
- Amenities — pools, gyms, landscaping, play areas
- A reserve fund for major future repairs
- Management and insurance of the common property
How they're charged — and regulated
You pay per square foot of your unit, set by the owners' association / developer and approved by RERA (the Real Estate Regulatory Agency, part of the Dubai Land Department). Payments run through the official Mollak system, which holds the funds in escrow and releases them to approved management companies — so there's transparency on what you're charged and where it goes.
What to budget
Rates vary a lot by community — roughly AED 3 to AED 30+ per square foot per year:
- Simpler communities: ~AED 3–10/sq ft
- Mid-range towers: ~AED 10–18/sq ft
- Premium, amenity-rich buildings: ~AED 18–30+/sq ft
So a 1,000 sq ft apartment at AED 15/sq ft costs AED 15,000 a year — about AED 1,250 a month, on top of your mortgage. Always ask for the exact current rate for the specific building before you commit.
Watch out for cooling
In many buildings, district cooling (chiller) is billed separately based on usage — sometimes with a fixed capacity charge too. It can add a few hundred dirhams a month, so confirm whether cooling is inside or outside the service charge.
Factor it into rent vs buy
Service charges are a real cost of owning that renters don't pay — which is exactly why our rent vs buy calculator includes annual ownership costs. Set the right service-charge figure there to get a fair comparison, and check what you can borrow with the eligibility calculator.