A plain guide to Dubai service charges for off-plan buyers: who sets them, what they cover, the DLD Service Charge Index and whether you pay before handover.
When you buy an apartment in Dubai, the price is not the only cost. Every year you also pay service charges. These cover the shared parts of your building and community, such as lifts, lobbies, pools, gyms, security and cleaning.
For off-plan buyers, two questions come up again and again. How much will I pay? And do I pay anything before handover? This guide answers both. It also shows you how to look up the approved rate for any project on the Dubai Land Department Service Charge Index, so you never have to rely on a guess. Service charges sit on top of the wider costs of buying property in Dubai.
What are service charges in Dubai?
Service charges are the yearly fees an owner pays to run, clean, insure and maintain the common parts of a jointly owned property. Jointly owned means a building or community where many owners share the same lifts, corridors, car parks and amenities.
According to Dubai Law No. 6 of 2019 on jointly owned property, each owner pays a share of the annual service charges. That share is based on the area of your unit as recorded in the Real Property Register, set against the total area of the property. In simple terms, a bigger unit pays more.
Charges are usually quoted as a rate in AED per square foot per year. You multiply that rate by your unit size to get your yearly bill. Invoices are often split into quarterly payments [to confirm: billing cycle can vary by management company].
Who sets service charges in Dubai?
No single person picks the number. It works like this:
- The management company drafts a budget. The owners association, run by a management company licensed in Dubai, prepares a detailed annual budget for the building or community.
- Tenders and contracts are attached. According to Dubai Land Department, the application must include tenders from at least 3 suppliers for each service, copies of service and maintenance contracts, insurance and utility bills.
- An external audit is done. The budget must be checked by an auditor accredited by the Real Estate Regulatory Agency (RERA).
- RERA approves the rate. According to Dubai Law No. 6 of 2019, a management entity cannot charge owners any service amount without RERA approval first. RERA can approve a temporary budget while the full one is reviewed.
- The rate is published. Approved rates appear in the Mollak system and on the Service Charge Index.
Mollak is the system Dubai Land Department and RERA use to regulate jointly owned property and monitor service charge payments. Owners can also pay their charges through it.
What is the DLD Service Charge Index?
The Service Charge Index is a free Dubai Land Department service. According to Dubai Land Department, it lets anyone view the service fees approved by RERA for jointly owned properties. Results show straight away.
You can open it in three places:
- The Mollak system on the Dubai Land Department website
- The Dubai Land Department website
- The Dubai REST app
How to read the Service Charge Index, step by step
- Open the index on the website or in Dubai REST.
- Choose the project name from the list. Search by building or project, not by area.
- Choose the usage. Residential, retail, office and parking can have different rates in the same project.
- Choose the budget year. Rates are approved each year, so always pick the latest year.
- Read the rate. The result shows the approved charge per square foot, often broken down by service category [to confirm current on-screen labels].
- Work out your bill. Multiply the rate by your unit area from your SPA or title deed.
The index is set out by project, not by area. That matters, because two towers in the same district can have very different rates.
What are typical service charges per square foot in Dubai?
There is no single “typical” rate. According to Dubai Land Department, rates are approved project by project, by usage and by year. So you need the figure for the exact building you are buying in.
Here is how rates tend to behave:
| Type of property | How rates tend to behave | DLD rate (AED per sq ft per year) |
|---|---|---|
| Mid-market apartment tower, basic amenities | Usually at the lower end | [to confirm from Service Charge Index, latest budget year] |
| Tower with pool, gym and 24-hour concierge | Usually higher, as more services are paid for | [to confirm from Service Charge Index, latest budget year] |
| Luxury or branded residences | Often at the top end, due to hotel-style services | [to confirm from Service Charge Index, latest budget year] |
| Villas and townhouses in a community | Often lower per sq ft, with a master community fee on top | [to confirm from Service Charge Index, latest budget year] |
Rates are reviewed every year and can go up or down. Check the latest approved figure before you sign, and again before each budget year.
What do service charges include?
According to Dubai Law No. 6 of 2019, money in the service charge account can only be used for set purposes. These include:
- Cleaning of common parts
- Security and safety services
- Running, maintaining, repairing and improving common parts and their fittings
- Insurance for the building
- Audit fees for the service charge accounts
- Management company fees, as set by RERA
- A reserve fund for emergencies and to replace equipment later
The law also requires the management entity to keep service charges in a separate bank account for each property, recognised by RERA.
What is usually not included
- Electricity and water inside your own unit
- Cooling or chiller fees billed per unit, where these apply [to confirm: depends on project]
- Repairs inside your unit
- Home contents insurance
- Usage charges for some facilities, which are approved separately [to confirm per project]
Do off-plan buyers pay service charges before handover?
Usually not while the building is under construction. Liability can start once the project is complete, even before you collect your keys.
Here is how it works in practice:
- During construction. There are no shared parts in use yet, so there is normally nothing to run. Your money goes on instalments into the project escrow account, not service charges.
- Developer’s share. According to Dubai Law No. 6 of 2019, the developer pays service charges for unsold units. It also pays for sold units where the sale contract or reservation agreement says it will cover them for the buyer.
- From completion. In 2025, Dubai’s Rental Disputes Centre set a legal principle on this point. A buyer whose name is on the preliminary register can be liable for service charges from the date the project is completed, or from the date they default on payments. This applies even if the title deed has not yet been issued.
- At handover. Many developers request an advance service charge payment in the completion notice, often covering a set period [to confirm: amount and period vary by SPA].
Delays on your side do not pause the bill. If you leave final payments open or postpone handover, service charges can still build up. Our off-plan handover checklist covers what to check on your completion notice.
What happens if you do not pay service charges?
According to Dubai Law No. 6 of 2019, owners cannot refuse to pay RERA-approved charges, and cannot give up their share of the common parts to avoid paying. The management entity also has a lien on the unit for unpaid charges. In practice, this means you cannot sell or transfer the unit until the arrears are cleared [to confirm: current enforcement steps].
Buyers of resale units should check the service charge status before transfer. Unpaid charges stay with the unit.
How service charges affect your returns
Service charges are a fixed yearly cost, whether the unit is rented or empty. If you are buying to rent, take them off your expected rent before you work out your net yield. A high-service tower can earn a higher rent, but the charges also take a bigger share of it.
For the full list of costs from booking to keys, see the true cost of buying off-plan in the guide linked above. If you are still at the start, our guide to Oqood in Dubai explains your first registration step.
How Sovereign helps
Sovereign Realty is a RERA-registered brokerage [to confirm wording]. Before you commit to a unit, we look up the approved rate on the Service Charge Index for that exact project, work out your yearly bill from your unit size, and check the service charge clause in your SPA. At completion, we go through the advance charges in your notice line by line.
If you are looking at a project now, speak to Sovereign and we will set out the service charges for your unit in writing.
FAQ
What are typical service charges per sq ft in Dubai?
There is no single figure. According to Dubai Land Department, rates are approved by RERA project by project, by usage and by year. Look up the exact project on the Service Charge Index and multiply the rate by your unit area.
Who sets service charges in Dubai?
The owners association’s management company drafts an annual budget with supplier tenders and an accredited audit. RERA must then approve it. Under Dubai Law No. 6 of 2019, owners cannot be charged without RERA approval.
Do off-plan buyers pay service charges before handover?
Not usually during construction. But a buyer on the preliminary register can be liable from the date the project is completed, or from a payment default, even before the title deed is issued. Check the service charge clause in your SPA.
Where can I check the approved service charge for a building?
On the Dubai Land Department Service Charge Index. It is free and available in the Mollak system, on the Dubai Land Department website and in the Dubai REST app. Pick the project, usage and budget year.
What do Dubai service charges cover?
Cleaning, security, maintenance and repair of common parts, building insurance, audit fees, management fees and a reserve fund. Utilities and repairs inside your own unit are not included.