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A Complete Guide to Service Charges in Dubai 2023-24

A Complete Guide to Service Charges in Dubai 2023

Planning to Purchase a Property in Dubai? Get Acquainted with City’s Service Charges and Understand Their Impact on Your Property Costs with Best Renovatos Comprehensive Guide.

  • What’re Service Charges in Dubai?
  • Dubai Service Charges Index
  • Service Charges Comparison

Dubai’s Service Charges: What Are They and Where Do They Apply?

In Dubai, service charges are regular payments made by homeowners to cover the maintenance and care of residential buildings or communities. These charges encompass various property management functions, including

  • Maintenance
  • Cleaning
  • Security personnel
  • Landscaping, and overall area/building upkeep.

 Factors That Affect the Cost-Of-Service Fees in Dubai

Service charges in Dubai are applicable to various property types, whether it’s a villa, apartment, retail space, or commercial property. They calculate these charges on a per-square-foot basis, which can vary from AED 3 to AED 30 or higher.

Analysis of Dubai’s Service Charges Index

The overall service charges for a property depend on several factors, including:

  • Community Location: The specific neighborhood where the property is situated.
  • Project Type: The particular building or sub-community within the neighborhood.
  • Property Usage: The intended purpose of the property, which can encompass retail, commercial, residential, offices, villas, serviced apartments, and more.

As an example, service charges in premium neighbourhoods tend to be greater compared to properties in more economical locations. For instance, when comparing Meydan villas for sale with JVC villas for sale, the former typically carries higher service charges.

Read: Stay Cool and Save Money: AC Repair and Maintenance Tips You Need to Know

Additional factors influencing service fees in Dubai encompass the property’s developer and its size. Based on these criteria, developers bill homeowners standard service fees for various property-related services, including DEWA connections and maintenance.

  • Services
  • Maintenance
  • Utilities
  • Management
  • Insurance
  • Master Community

Sinking Fund for Dubai Properties

In addition to these charges, developers also impose what is known as a Sinking Fund. The Sinking Fund for Dubai properties serves as a reserve fund earmarked for significant repairs or maintenance needs.

Furthermore, in addition to being responsible for this Sinking Fund, homeowners are accountable for covering expenses related to the repair, renovation, or replacement of various elements such as:”

  • Roof
  • External cladding
  • Fire alarms
  • Safety systems
  • Common area A/C systems
  • Windows Balconies
  • Parking facilities
  • Elevators And more.

Furthermore, in addition to that, other costs that contribute to the overall expenditure encompass utility charges for chiller-free and district cooling units.

Contrasting Service Charges Between Villas and Apartments in Dubai

Let’s examine specific instances of the Dubai Service Charges Index in some of the emirate’s well-known areas.


To gain insight into apartment service charges, let’s take Arena Apartments in Dubai Sports City as an example. Here’s a breakdown of the service charges associated with residing in this residential building.

Service ChargesRate (AED/Sq.Ft)
Utilities Services1.54
Management Services1.26
Master Community1.15
Reserved Fund0.96


Villa service charges in Dubai vary slightly from those of apartments. Here’s an example from Al Reem 1 in Arabian Ranches, a sought-after community for villa purchases.

Service ChargesRate (AED/Sq.Ft)
Utilities Services0.33
Master Community1.31
Reserved Fund0.15

Be aware that these service charges are current as of now and may be subject to revisions. We advise you to consult the Dubai Land Department’s official service charge index portal for the most up-to-date and detailed service charge information for any property category in Dubai.

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