Every apartment owner in Dubai pays a yearly service charge for the building's upkeep. It is set per square foot and approved by RERA, so the developer cannot charge what it likes.
It is also the cost buyers most often forget. On a typical 1 bedroom it takes 12% to 22% of the rent.
- per sq ft a year, Dubai median
- AED 15.52
- building budgets behind it
- 1,606
- a year for a typical 1 bed, by area
- AED 9,267 to 17,919
- of rent, highest share, International City
- 21.6%
Service charges: 2026 RERA-approved budgets in the DLD service charge index (Mollak). Sizes and rents: Dubai Land Department, August 2025 to July 2026.
What the service charge pays for
- Security, cleaning and building staff
- Lifts, pools, gyms and other shared areas
- Building insurance and common utilities
- A reserve fund for large repairs
The owner pays it, not the tenant. The owners' association sets a budget each year, RERA approves it, and it is billed through the Mollak system.
Service charges by area in 2026
| Area | Median per sq ft | Buildings | Typical 1 bed pays a year | Share of 1 bed rent |
|---|---|---|---|---|
| Dubai Creek Harbour | AED 20.67 | 20 | AED 14,758 | 14.1% |
| Business Bay | AED 19.97 | 84 | AED 16,176 | 17.0% |
| Downtown Dubai | AED 18.85 | 25 | AED 16,720 | 13.9% |
| Dubai Hills Estate | AED 18.53 | 26 | AED 12,211 | 12.9% |
| Sobha Hartland | AED 17.36 | 9 | AED 10,919 | 12.6% |
| JVC | AED 16.39 | 191 | AED 13,210 | 17.6% |
| Dubai Marina | AED 16.31 | 104 | AED 13,635 | 14.4% |
| Arjan | AED 15.67 | 38 | AED 12,035 | 16.7% |
| Palm Jumeirah | AED 15.65 | 17 | AED 17,919 | 11.9% |
| Dubai Silicon Oasis | AED 13.61 | 60 | AED 11,119 | 18.5% |
| International City | AED 12.66 | 44 | AED 9,267 | 21.6% |
| Area | Median per sq ft | Buildings |
|---|---|---|
| Dubai Sports City | AED 15.75 | 50 |
| Town Square | AED 15.42 | 8 |
| Al Furjan | AED 13.91 | 42 |
| Damac Hills | AED 3.13 | 48 |
Cheap areas have lower rates but pay a bigger share of the rent. In International City, more than a fifth of the rent goes on the service charge.
The building matters more than the area
AED 3.52 to 40.20
the range of service charges per sq ft inside Dubai Marina alone, across 104 buildings.
Towers with hotel-style services, large pools and concierge cost the most. Older towers with fewer facilities cost the least. In Dubai Marina, Elite Residence charges AED 14.41 and Cayan Tower AED 23.74. See more in our Dubai Marina buying guide.
Before you make an offer, look up the exact building in the DLD service charge index. It is free on the Dubai Land Department website and the Dubai REST app.
The full cost of owning an apartment in Dubai
Once, when you buy
| Cost | Amount |
|---|---|
| DLD transfer fee | 4% of the price |
| Agency commission | usually 2% + VAT |
| Trustee office, title deed and admin | about AED 4,800 |
| Mortgage registration and valuation | 0.25% of the loan + about AED 3,400 |
Every year
| Cost | Typical 1 bed in Dubai Marina |
|---|---|
| Service charge (836 sq ft × AED 16.31) | AED 13,635 |
| Cooling, if billed separately | depends on the building |
| Home contents and landlord insurance | a few hundred to a few thousand dirhams |
| Repairs inside the flat | varies with age and use |
Some buildings include cooling in the service charge. Others bill it separately through a district cooling company. Ask before you buy, because it can add thousands a year.
How service charges change your rental yield
| Area | Gross yield, 1 bed | After service charge |
|---|---|---|
| International City | 9.6% | 7.5% |
| Dubai Silicon Oasis | 8.6% | 7.0% |
| Arjan | 7.6% | 6.3% |
| JVC | 7.5% | 6.2% |
| Business Bay | 6.6% | 5.4% |
| Dubai Marina | 6.3% | 5.4% |
| Downtown Dubai | 5.9% | 5.0% |
| Palm Jumeirah | 5.0% | 4.4% |
Service charges take 0.6 to 2.1 points off the yield, and the most in the cheapest areas. Agency fees, empty months and repairs take a little more.
Questions buyers ask
How much are service charges in Dubai?
The median is AED 15.52 per sq ft a year across 1,606 RERA-approved building budgets in 2026. A typical 800 sq ft 1 bedroom pays about AED 12,400 a year at that rate.
Who pays service charges, the owner or the tenant?
The owner. Tenants pay rent and their own utilities, but the service charge stays with the owner.
Which Dubai areas have the highest service charges?
Of the areas we checked, Dubai Creek Harbour (AED 20.67), Business Bay (AED 19.97) and Downtown (AED 18.85) have the highest medians per sq ft.
How do I check the service charge for a building?
Search the building in the DLD service charge index on the Dubai Land Department website or the Dubai REST app. It shows the approved rate per sq ft.
Can service charges go up?
Yes, the budget is set each year. Any rise must be approved by RERA before owners are billed.
How we worked this out
- Service charge rates are the median of 2026 RERA-approved residential budgets in the DLD service charge index (Mollak), as published on 25 October 2026. Dubai-wide median: AED 15.52 across 1,606 budgets.
- Typical sizes, prices and rents are the middle values of ready 1 bedroom sales and new 1 bedroom leases registered with the Dubai Land Department, August 2025 to July 2026.
- City Walk and JLT are left out because too few budgets are published for them.
Sources
- DLD service charge index (Mollak), 2026 RERA-approved budgets
- Dubai Land Department open data: sales and rental contracts
Written by the team at Candle Real Estate, a licensed brokerage in Bay Gate Tower, Business Bay (licence 1265901). Published 30 October 2026. This is general information, not financial or legal advice. Check fees and visa rules with the Dubai Land Department or your bank before you commit.