RERA-regulated community fees — rates by area 2025
| Area | Property Type | Service Charge Rate | Notes |
|---|---|---|---|
| Palm Jumeirah | Luxury Island | AED 20–30/sqft | World-class facilities |
| Downtown Dubai | City Centre | AED 20–35/sqft | Highest in Dubai |
| Dubai Marina | Waterfront | AED 15–25/sqft | Marina maintenance |
| Business Bay | Business District | AED 15–22/sqft | Canal views premium |
| JVC | Affordable | AED 10–15/sqft | Lower facilities |
| Arabian Ranches | Villa Community | AED 3–8/sqft | Lower sqft for villas |
| Al Reem Island | AD Waterfront | AED 12–20/sqft | Similar to Dubai |
Service charges in Dubai are an annual owner-borne cost covering building maintenance, security, common area cleaning, facilities management (gyms, pools, landscaping), and HVAC maintenance in common areas. They are regulated by RERA through the MOLLAK system — a centralised platform that sets, collects, and audits service charges for all registered buildings. Charges are expressed in AED per square foot per year and vary significantly between communities. A 900 sqft 1BR apartment in Downtown Dubai at AED 25/sqft incurs AED 22,500/year in service charges alone — roughly 1.5–2% of the property value — which is a material deduction from gross rental yield. The same-sized unit in JVC at AED 12/sqft costs AED 10,800/year.
Villa communities typically charge per the plot or villa rather than per sqft of built area, making the absolute figures lower than apartments in absolute terms but the methodology different. Arabian Ranches charges AED 3–8/sqft on the community fee, which for a 3,000 sqft villa is AED 9,000–24,000/year — including landscaped streets, security, and community facilities. The key variable is the quality of facilities: luxury high-rises with concierge, multiple pools, gyms, business centres, and marina access (e.g., the Address hotels portfolio, Dubai Marina luxury towers) justify higher charges; basic low-rise apartment buildings in affordable communities should have charges in the AED 10–15/sqft range.
Investors must factor service charges into all net yield calculations. A JVC 1BR apartment generating AED 65,000/year gross rent at AED 12/sqft service charge on 750 sqft (AED 9,000) yields AED 56,000 net before management fees and maintenance. The same calculation for a Business Bay unit generating AED 85,000 at AED 18/sqft on 800 sqft (AED 14,400) yields AED 70,600 net — a wider absolute gap than the gross figures suggest. RERA requires buildings to publish their approved service charge budgets through MOLLAK, which landlords and tenants can access. Disputes about charges exceeding the approved budget can be raised through RERA's Dispute Resolution Centre.
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