What's in this guide
Everyone asks about the price. Most people ask about the rent. Very few ask what the building charges them every year to own it.
That number — the service charge — is the single biggest variable between gross and net yield in Dubai. And unlike most things in property, you can look it up officially, for free, before you commit.
1. What service charges actually are
Every freehold building in Dubai sits under an Owners' Association registered with RERA. It proposes an annual operating budget covering:
- Security, cleaning and general maintenance
- Lift servicing and common-area chiller plant
- Pool, gym and landscaping upkeep
- Building insurance and management fees
- A reserve (sinking) fund for major long-cycle works — facade, lifts, plant replacement
RERA reviews that budget, audits the previous year's actual spend, and approves a rate expressed as AED per square foot of unit area per year.
The formula is simply: unit area (sq ft) × approved rate = your annual bill.
This is regulated under Law No. 6 of 2019 on Jointly Owned Real Property, and administered through Mollak — the RERA platform that routes collected funds into regulated accounts and tracks budgeted against actual spend.
2. What the numbers actually look like
Rates vary enormously — which is precisely why the community average is useless to you.
| Building type | Typical range (AED per sq ft per year) |
|---|---|
| Mid-market towers in suburban communities | roughly 11 – 17 |
| Standard apartment buildings, Dubai-wide | roughly 15 – 20 |
| Central and high-amenity towers | roughly 20 – 35 |
| Prime waterfront and branded residences | can exceed 60 |
| Villa and townhouse communities | generally lower — fewer shared facilities |
Indicative ranges from published DLD data as at August 2026. The approved rate is set per building and revised annually — verify the specific building, not the range.
3. What this does to your yield
Take a real comparison. Two 1,200 sq ft apartments, both bought at AED 1.5 million, both renting at AED 110,000 a year. Gross yield on each: 7.3%.
| Building A (AED 15/sq ft) | Building B (AED 32/sq ft) | |
|---|---|---|
| Annual rent | AED 110,000 | AED 110,000 |
| Service charge | AED 18,000 | AED 38,400 |
| Net rent (before other costs) | AED 92,000 | AED 71,600 |
| Effective net yield | ~6.1% | ~4.8% |
Same price. Same rent. Same headline yield. A gap of more than a full percentage point in what actually reaches you — compounding every year you hold it.
This is why a broker quoting gross yield without naming the building's service charge is not giving you information. They are giving you half a number.
4. How to check any building before you buy
You do not need permission or an agent for this. DLD publishes the Service Charge Index on its website and in the Dubai REST app.
- Open the DLD Service Charge Index (website or Dubai REST app)
- Search by project name, area, or title deed number
- Read the RERA-approved rate per square foot for the current budget year
- Multiply by the unit's area — that is your real annual cost
Two extra checks worth making:
- Is the building registered on Mollak? If not, that is a genuine red flag, and owners can complain to RERA about it.
- How does it compare to similar buildings? The index is a benchmarking tool. A rate far above comparable developments needs justification, and you are entitled to ask for it.
5. The off-plan trap
Here is where buyers get caught, and it is worth stating bluntly.
An off-plan building has no approved Mollak budget yet. It cannot — the building does not exist, there is no audited spend to review.
So the figure quoted at launch is an estimate produced by the developer. It is not RERA-approved and it is not binding. Once the building completes, registers, and RERA reviews the first real budget, the actual rate can land meaningfully higher.
The defensive move: ask the developer for the approved rates on their comparable completed buildings. That is real data on how their estimates have historically compared to reality. A developer whose past projects settled close to their launch estimates is telling you something. So is one who deflects the question.
6. What happens if you do not pay
Service charges are not optional and not negotiable at the individual level.
- The owner is liable, not the tenant — unless a lease specifically shifts it, which is unusual for the main charge.
- Non-payment escalates: late fees, formal notices, and restriction on DLD transactions for that unit.
- You cannot sell or refinance with outstanding charges. This catches people at exit, at the worst possible moment.
If you believe a charge is unjustified, the route is through the Owners' Association and RERA — comparing the approved rate against the index and querying the budget line by line. Simply not paying is not a strategy; it blocks your own exit.
7. Frequently asked questions
How much are service charges in Dubai?
They vary by building, from roughly AED 3 to over AED 70 per square foot per year, with a Dubai-wide median around AED 17. Mid-market suburban towers typically sit at 11–17, central high-amenity towers at 20–35, and prime branded residences considerably higher.
How do I check the service charge for a specific building?
Use the DLD Service Charge Index on the Dubai Land Department website or the Dubai REST app. Search by project name, area or title deed number to see the RERA-approved rate per square foot for the current year.
What is Mollak?
Mollak is the RERA platform governing service charge accounts across Dubai. Owners’ Associations submit budgets through it, RERA approves them, and collected funds are routed into regulated accounts with budgeted versus actual spend tracked.
Who pays service charges, the owner or the tenant?
The owner. Unless a lease specifically provides otherwise, liability sits with the unit owner even when the property is tenanted.
Are off-plan service charge estimates reliable?
Not necessarily. An off-plan building has no RERA-approved Mollak budget yet, so launch figures are developer estimates. The actual approved rate after completion can be higher. Ask for approved rates on the developer’s comparable completed buildings.
What is a sinking fund?
A reserve fund within the service charge, set aside for major long-cycle works such as facade repair and lift replacement. A building with a healthy reserve fund is less likely to hit owners with a sudden special levy.
What happens if I do not pay service charges?
Late fees and formal notices, followed by restriction on DLD transactions for the unit. In practice this means you cannot sell or refinance until the arrears are cleared.
Want the real net yield on a unit?
Send Ali the building and unit size. He will pull the RERA-approved service charge, the achieved rents from DLD data, and show you what actually lands in your account — not the gross figure on the brochure.
Sources & verification. Regulatory framework per Law No. 6 of 2019 on Jointly Owned Real Property, administered by RERA through the Mollak platform; rates published via the Dubai Land Department Service Charge Index. Indicative ranges only — confirm the approved rate for any specific building before committing. Figures reflect the position as at 5 August 2026 and can change — always confirm current rules with the relevant authority before you commit.