Service charges in Dubai in 2026: how much an apartment owner pays
When buying an apartment in Dubai, besides the price and the DLD fee you have to take into account the annual service charge. It lowers the real rental yield more than many buyers expect, so it is worth knowing its level before making a decision.
What the service charge is
It is a mandatory owner’s fee for the upkeep of the building and common areas, arising from Dubai’s jointly owned property law (Law No. 6 of 2019). The amount is set by the company managing the building, and the budget is approved by the regulator RERA through the Mollak system. The fee is charged per square foot of area per year and divided among owners according to the size of their units.
How much it is in 2026
The ranges depend on the district, the age of the building and its standard. Below are indicative rates for apartments (AED per square foot per year).
| District | Average (AED/sq ft/year) | Range |
|---|---|---|
| Palm Jumeirah | 35 | 22–62.5 |
| Downtown Dubai | 28 | 18–44 |
| JBR | 24 | 18–48.5 |
| Dubai Marina | 22 | 14–35 |
| Business Bay | 18 | 12–52 |
| JLT | 14 | 11–18 |
| Jumeirah Village Circle | 12 | 9–16 |
| International City | 8 | 6.5–11 |
Example: an apartment of 1,000 square feet (about 93 m²) in Business Bay at a rate of AED 15 per foot comes to about AED 15,000 a year, or about AED 1,250 a month. The data comes from market summaries and may differ depending on the source, so always check the rate for the specific building.
What the fee covers
The fee covers the upkeep of common areas (reception, corridors, lifts, parking), security and cleaning, the pool and gym, gardens, building insurance, utilities for common areas and a reserve fund for major repairs. This fund usually makes up from a few to over ten percent of the budget. In large communities there is also a charge for the shared infrastructure of the whole complex.
Who pays
The fee is borne by the owner, not the tenant, even when the unit stands empty. Passing it on to the tenant is possible only if it is written into the tenancy agreement, and it usually concerns the parts related to using the amenities, not the reserve fund.
How it affects rental yield
It is usually the largest cost item on the owner’s side. According to indicative market estimates, the service charge is about 17–30% of annual rent, and the yield after deducting it is clearly lower than gross. For example, in Business Bay with a gross yield of about 7% the net yield after charges is about 5.3–5.8%, and in Downtown with about 6.1% gross it is about 4.4–4.9%. You will find more about the other costs on the page Costs and taxes in Dubai, and about the rules of renting in the article Short-term rental in Dubai.
What happens when you do not pay
Arrears result in late penalties, demands from the manager and restricted access to amenities. Unpaid charges also block the issue of the NOC certificate from the developer, and thus the sale and transfer of ownership at the DLD.
How to check the rate before buying
- check the building’s official rate in the RERA service charge index (the Mollak system, available through the DLD and the Dubai REST app), and do not rely on verbal assurances,
- compare the rates of several buildings in the same district, because the differences can be twofold,
- when buying off-plan, make sure whether the stated rate is approved or only an estimate: after handover it is sometimes changed (more in the article Off-plan in Dubai),
- calculate net yield: rent minus the service charge, management and possible vacancies.
Summary
Service charges are not a hidden cost, but they are easy to overlook in a calculation. Before buying, compare districts (an overview on the page Dubai districts) and choose a building where the rate is clearly approved. We will gladly help with the analysis, write to us. You will find full information about buying on the page Property in Dubai.
The information is general and indicative. Rates and regulations change, so verify them in official sources or with an adviser before buying.
Updated: 13 October 2026. Sources: Dubai Land Department.
