Are you looking to buy a home in Dubai? It’s important to familiarize yourself with property service charges in the city to know the additional costs involved with buying a property. Here is homefinder.global handy guide on property service charges in Dubai and how they affect the overall cost of the property. 

BREAKING DOWN PROPERTY SERVICE CHARGES IN DUBAI

PROPERTY SERVICE CHARGES IN DUBAI – WHAT ARE THEY AND WHERE ARE THEY APPLIED

Property Service charges in Dubai are recurring fees homeowners pay for the maintenance and upkeep of residential buildings or communities. They cover different property management aspects such as maintenance, cleaning, security staff, landscaping, and general upkeep of the area/building.

Whether it is a villa or apartment, retail or commercial property, service charges in Dubai apply to all properties. These fees are charged on a square-foot basis and can range from AED 3 to AED 30 or even more.

BREAKDOWN OF DUBAI PROPERTY SERVICE CHARGES INDEX

The total cost of property service charges that are applied to a property varies depending on various factors such as:

• Community Location – The neighborhood that the property is located in
• Project Type – The building/sub-community in the neighborhood
• Property Usage – The purpose for which the property is purchased. This includes retail, commercial, residential, offices, villas, serviced apartments, etc. 

For instance, the property service charges in coveted areas can be higher than those for a similar property in a more budget-friendly location. For example, luxury Meydan villas for sale have higher service charges than the JVC villas for sale.

Other factors that affect the cost-of-service fees in Dubai include the developer and property size. As per the above parameters, homeowners will be charged standard service fees for the property, such as setting up DEWA connections, maintenance, etc. To ease this process, DLD initiated the Mollak System; an online portal to monitor the property service charges of jointly-owned properties.

Here is the list of the most common property service charges an owner has to bear.

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

Apart from these, developers also charge something known as a Sinking Fund. The sinking fund for properties in Dubai acts as reserve funds for any major repairs or maintenance that may be required.

This sinking fund is also payable by the homeowner. It will cover repair, renovation or replacement of the roof, external cladding, fire alarms and safety systems, A/C systems in the common areas, windows, balconies, parking areas, elevators, etc. Other additional costs to the total outlay include utilities for chiller-free and district cooling units.

CALCULATE SERVICE CHARGES ON PROPERTY THROUGH DLD WEBSITE

Follow the steps detailed below to calculate the property service charges on a property through DLD Website. 

CALCULATE THE PROPERTY SERVICE CHARGES THROUGH ‘TITLE DEED NO.’ OPTION:

You can determine the service charge on property in Dubai via Title Deed no. on DLD website.

1. Open the website and select ‘Title Deed No.’ from the drop-down list. 
2. Enter certificate no., certificate year, property type and budget year.
3. Click on Calculate and the results for service charges will be displayed.

CALCULATE THE PROPERTY SERVICE CHARGES THROUGH THE ‘SERVICE CHARGE INDEX’ OPTION:

1. Open the website and select ‘Service Charge Index’ from the drop-down list. 
2. Enter the project name, the purpose of usage, and the year.
3. Click on Calculate and the results for service charges will be displayed.

CALCULATE THE PROPERTY SERVICE CHARGES THROUGH THE ‘SELECT ON MAP’ OPTION:

The service charge of a property is calculated by marking the location on the map on the DLD website.

1. Open the website and choose the ‘Select on Map’ option from the drop-down list.
2. Locate the area for which you wish to find the property service charges. After clicking on the desired area, the project name, its usage, and the year will be displayed. 
3. Click on Calculate and the results for property service charges will be displayed.

CALCULATE SERVICE CHARGES ON PROPERTY THROUGH DUBAI REST APP 

The Dubai REST App offers a feature to calculate the property service charge on a property in Dubai.

Follow the steps detailed below to find out the service charges on a property through Dubai REST App.

1. Open the Dubai REST App and choose the ‘Services’ option from the tab at the bottom.
2. From the Services window, select ‘Service Charge Index’.
3. Here you will be asked to either enter the details of the property manually or locate it on the map.
4. Once the details have been entered, hit ‘Search’.
5. The results of property service charges applicable on the said property will be displayed. 

WHAT HAPPENS IF THE SERVICE CHARGES ON THE PROPERTY ARE NOT PAID?

As per Article 32 of Dubai Law No. 6, if an owner fails to pay the share of service charges, the Management entity will request them, via a written notice approved by RERA, to pay the charges within 30 days. 

Failure to pay the due amount in the stated time will result in a financial claim made against the owner. Where necessary, the execution judge can order a public auction of the unit owned by the defaulting owner to recover the property service charges.

COMPARISON OF VILLA AND APARTMENT SERVICE CHARGES IN DUBAI

Let’s look at some examples of the Dubai property service charges index in the popular areas of the emirate.

All of the amounts mentioned below have been extracted for the comparison of service charges for apartments vs villas in Dubai are from the Dubai service charges index portal on the official website of the Dubai Land Department.

APARTMENT SERVICE CHARGES IN DUBAI

The apartment service charges in Dubai may vary depending on the area. We’ve selected Amna Residency in International City to explain apartment service charges. Here’s what you’ll have to pay as service charges whilst living in a residential building.

Service Charges	Rate (AED/Sq.Ft)
Services	3.55
Maintenance	2.51
Utilities Services	2.53
Management Services	1.20
Insurance	0.18
Master Community	0.34
Reserved Fund	1.10
General Fund Rate	10.31
Total	11.41

Charges for apartments in an upscale area may vary. For instance, the charges for Sunrise Bay at Emaar Beachfront are slightly higher than those for Amna Residency in International City.

Service Charges	Rate (AED/Sq.Ft)
Services	2.29
Maintenance	3.59
Utilities Services	4.81
Management Services	1.00
Insurance	0.32
Master Community	3.34
Reserved Fund	1.78
General Fund Rate	15.35
Total	17.13
Additional Charges (Unit A/C)	4.32

SERVICE CHARGES FOR VILLAS IN DUBAI

The charges for villas in Dubai differ slightly from flats. Here are the service charges for Albizia, DAMAC Hills 2, a popular community in the Emirates, for buying villas.

Service Charges	Rate(AED/Sq.Ft)
Services	0.35
Maintenance	0.23
Improvement	0.09
Utility Services	0.02
Management Services	0.94
Master Community	2.16
Reserved Fund	0.25
General Fund Rate	3.79
Total Rate	4.04

Please note that these are the latest service charges and are subject to change. We recommend you visit the Dubai Land Department’s official service charge index portal for the most recent breakdown of service charges for any property type in Dubai.

That is all about Service Charges on Property in Dubai and how to calculate the service charge on the property. If you are a property owner in Dubai, you must update yourself with all the additional costs of property purchasing. Whether you are selling, renting, or buying property in Dubai, you must familiarize yourself with the rules and regulations of the Dubai real estate market. 

FAQS ABOUT PROPERTY SERVICE CHARGES IN DUBAI

WHY ARE SERVICE CHARGES FOR APARTMENTS HIGHER THAN VILLAS?

The service charges for apartments are higher than villas because most flats come with additional amenities that require regular upkeep, such as elevators, pools, BBQ areas and kids’ play areas, to name a few. But as the charges are based on per square footage, massive villas may have higher service charges.

WHICH AREAS HAVE EXPENSIVE SERVICE CHARGES FOR APARTMENTS IN DUBAI?

Jumeirah Bay Island, Pearl Jumeirah, Bluewaters Island, City Walk and Al Barari are Dubai’s most expensive areas for apartment living. Apartments in these areas have higher charges than other areas, such as International City and DAMAC Hills 2.