A detailed guide to service charges in Dubai
- What are Service Charges in Dubai
- Breakdown of Dubai Service Charges Index
- How to Use Service Charge Index Dubai 2024
- Dubai Properties Service Charges Payment
- Comparison of Service Charges
- FAQs
Are you looking to buy a home in Dubai? It’s important to familiarise yourself with service charges in the city to know the additional costs involved with buying a property. Here is MyBayut’s handy guide on service charges in Dubai and how they affect the overall cost of the property.
SERVICE CHARGES IN DUBAI – WHAT ARE THEY AND WHERE ARE THEY APPLIED
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.
Service charges in Dubai apply to all properties, whether villas, apartments, retail or commercial units. These fees are charged on a square-foot basis and can range from AED 3 to AED 30 or even more.
BREAKDOWN OF DUBAI SERVICE CHARGES INDEX
The total cost of service charges that are applied to a property varies depending on various factors such as:
- Community Location – The neighbourhood that the property is located in
- Project Type – The building/sub-community in the neighbourhood
- Property Usage – The purpose for which the property is purchased. This includes retail, commercial, residential, offices, villas, serviced apartments, etc.
For instance, the 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 account connections, maintenance, etc.
Here is the list of the most common 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.
HOW TO USE SERVICE CHARGE INDEX IN DUBAI 2024
To check service charges for your residential or commercial property, visit the Dubai Land Department’s official service charge index.
- Click on Access This Service to start the process.
- There are three different ways to search for the latest Dubai service charge for a particular property.
- Users can search using the Title Deed No. Inquiry about Service Fee Indicator and Select on Map.
- If you have information related to the Title Deed, then fill out the information provided to get updated Dubai property service charges.
- Use the Inquiry about Service Fees Indicator to get service charges for commercial or residential property. Select the building from the Projects dropdown menu.
- Add Usage (choose from Residential or retail or office) and Year to get the updated charges.
- The third method is to locate the property on the map to determine its service charges.
- You can also use the DubaiREST app to determine service charges for your building.
Dubai Properties Service Charges Payment
Pay for properties service charge index Dubai 2024 online through these apps and portals:
- DEWA Smart App
- DEWA Website
- Empay UAE Application
- EasyPay
COMPARISON OF VILLA AND APARTMENT SERVICE CHARGES IN DUBAI
Let’s look at some examples of the Dubai service charges index in the popular areas of the emirate.
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 this residential building.
Service Charges | Rate (AED/Sq.Ft) |
|---|---|
Service Charges Services | Rate (AED/Sq.Ft) 3.73 |
Service Charges Maintenance | Rate (AED/Sq.Ft) 2.42 |
Service Charges Utilities Services | Rate (AED/Sq.Ft) 2.08 |
Service Charges Management Services | Rate (AED/Sq.Ft) 1.20 |
Service Charges Insurance | Rate (AED/Sq.Ft) 0.18 |
Service Charges Master Community | Rate (AED/Sq.Ft) 0.34 |
Service Charges Reserved Fund | Rate (AED/Sq.Ft) 1.49 |
Service Charges General Fund Rate | Rate (AED/Sq.Ft) 9.94 |
Service Charges Total | Rate (AED/Sq.Ft) 11.43 |
Charges for apartments in an upscale area may vary. For instance, the charges for RP Heights at Burj Khalifa District are slightly higher than those for Amna Residency in International City.
Service Charges | Rate (AED/Sq.Ft) |
|---|---|
Service Charges Services | Rate (AED/Sq.Ft) 2.49 |
Service Charges Maintenance | Rate (AED/Sq.Ft) 2.77 |
Service Charges Improvement | Rate (AED/Sq.Ft) 0.40 |
Service Charges Utilities Services | Rate (AED/Sq.Ft) 7.32 |
Service Charges Management Services | Rate (AED/Sq.Ft) 0.72 |
Service Charges Insurance | Rate (AED/Sq.Ft) 0.72 |
Service Charges Master Community | Rate (AED/Sq.Ft) 1.38 |
Service Charges Income | Rate (AED/Sq.Ft) -0.04 |
Service Charges General Fund | Rate (AED/Sq.Ft) 15.76 |
Service Charges Reserved Fund | Rate (AED/Sq.Ft) 0.52 |
Service Charges Total | Rate (AED/Sq.Ft) 16.28 |
- 1 BED
- |
- 2 BATHS
- |
- 1001 SQFT
- STUDIO
- |
- 1 BATH
- |
- 413 SQFT
- 2 BEDS
- |
- 3 BATHS
- |
- 1348 SQFT
- 1 BED
- |
- 2 BATHS
- |
- 872 SQFT
- 2 BEDS
- |
- 3 BATHS
- |
- 1191 SQFT
- 1 BED
- |
- 1 BATH
- |
- 819 SQFT
- 1 BED
- |
- 2 BATHS
- |
- 860 SQFT
- STUDIO
- |
- 1 BATH
- |
- 412 SQFT
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 emirate, for buying villas.
Service Charges | Rate(AED/Sq.Ft) |
|---|---|
Service Charges Services | Rate(AED/Sq.Ft) 0.35 |
Service Charges Maintenance | Rate(AED/Sq.Ft) 0.19 |
Service Charges Improvement | Rate(AED/Sq.Ft) 0.01 |
Service Charges Utility Services | Rate(AED/Sq.Ft) 0.00 |
Service Charges Management Services | Rate(AED/Sq.Ft) 0.94 |
Service Charges Master Community | Rate(AED/Sq.Ft) 2.15 |
Service Charges Reserved Fund | Rate(AED/Sq.Ft) 0.13 |
Service Charges General Fund Rate | Rate(AED/Sq.Ft) 3.64 |
Service Charges Total Rate | Rate(AED/Sq.Ft) 3.77 |
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.
FAQs About 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. However, 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.
WHAT SHOULD BE MY MINIMUM SALARY TO BUY A PROPERTY IN DUBAI?
The minimum salary to buy a property in Dubai depends on the type of property you’re aiming for. For instance, if you wish to buy a 1-bedroom flat in Jumeirah Village Circle, your minimum salary should be AED 15k monthly. This way, you can pay easy monthly instalments of 3.5% (AED 2,004) for 25 years.
WHICH ARE THE TOP REAL ESTATE DEVELOPERS IN DUBAI?
Emaar, Nakheel, Dubai Properties, Meraas and Meydan are some of Dubai’s most notable real estate developers.
And with that, we conclude our guide to the service charges in Dubai. For a more detailed comparison, refer to the service charges comparison for flats and villas in Dubai.
You can also refer to Dubai real estate transactions exempt from VAT to help you understand the cost of buying property in the UAE.
