Service charges: the cost that changes your real return

When people compare two off-plan homes, they compare the price, the payment plan and the expected rent. There is a fourth number that quietly sits between the rent and your pocket: the service charge.

What it is

Once a building is complete, the owners share the cost of running it: cleaning, security, lifts, landscaping, common areas and repairs. Each owner pays a yearly service charge for their share. It is a normal part of owning an apartment or townhouse in a shared community, in Dubai and in most cities.

What Dubai gives you to check it

This is one of the things I like about the way Dubai handles property. The charge is not left to guesswork.

• The Dubai Land Department runs a Service Charge Index. It lets you look up the service fees approved by the Real Estate Regulatory Agency (RERA) for jointly owned properties, by project, by use and by year.
• It also runs Mollak, an electronic system, launched through RERA, that regulates jointly owned properties and their service charges. Its public pages list service charge budget approval, and the submission of financial records and audit reports for a community, among its services.
• You can open the index on the Dubai Land Department website or in the Dubai REST app.

For a brand-new project there may be no approved figure yet, because nothing is complete. In that case the developer gives an estimate. Treat an estimate as a starting point, and compare it with a finished building of a similar type nearby.

Why it matters to your return

Rent is not profit. If a home rents for a certain amount each year, the service charge comes out of that before you count anything else. Two homes with the same rent can leave you with different results because their charges differ. I write more about this in the article on gross and net yield.

What I would ask

• What is the expected yearly service charge for this unit, in writing?
• What does it cover, and what is billed separately?
• What do owners in a similar, completed building nearby pay today?
• Is there a reserve for repairs, and who manages it?

For family offices and larger investors

Across several units, or a whole floor, a small difference in service charge per square foot becomes a large yearly amount. I would ask for the building's budget and not only the headline rate, ask who reviews it, and compare the buildings on your shortlist side by side. Then put the figure into your net-yield model, so that you decide on the number you will actually earn.

My view

A fair service charge is not a reason to avoid a project. It pays for the things that keep a building pleasant and valuable. What matters is that you know the number before you commit, so that your plan is built on real figures. Ask early, and ask in writing.

If you would like to talk it through before you decide, you are welcome to contact me.

Sources: Dubai Land Department, Service Charge Index (dubailand.gov.ae); Mollak, Dubai Land Department (mollak.dubailand.gov.ae). Checked on 24 October 2026. Rules and fees change, so confirm for your own purchase.