Service Charges Explained in Dubai and Abu Dhabi

A service charge is what you pay, as an owner, towards the common parts of a building or community — the structure, shared plant, leisure facilities and management. In Dubai the official place to check the approved rate is the Dubai Land Department Service Charge Index, which is project-specific. In Abu Dhabi, service fees must be approved by the Department and collected by the licensed management company, which may not add unofficial extras.

This guide explains those official rules and how we check a building for clients of Your Key. Catalogue dirham-per-square-foot figures on project pages are not a substitute for the approved rate.

How do I check the official rate in Dubai?

Use the DLD Service Charge Index. The live form (as read on 16 Nov 2026) asks for the project, the usage (for example residential or office) and the budget year. You can also use a title-deed number and year. DLD’s own notes on that page say:

• For invoices issued after 2019, balcony area is calculated at 0.25% of the suite area, and earlier invoices do not include the balcony value.
• The service charge does not include arrears.

There is no official citywide rate. Two towers in the same community can differ. Always search the specific project and the correct budget year, including the year you are buying into, not only the year the building launched.

The same index is available through official DLD digital channels, including Dubai REST. If the index returns no data — common for a brand-new off-plan building — ask the developer for the latest budget submitted to or approved by RERA, and treat it as an estimate until the index lists the project.

RERA’s role in jointly owned property includes reviewing budgets and service-charge information, as described in DLD’s investor materials. Law No. 6 of 2019 is the current statute on jointly owned real property in Dubai. Owners pay service charges as members of the jointly owned property and generally need a no-objection confirmation that charges are up to date before a transfer.

How do service fees work in Abu Dhabi?

Under Law No. 3 of 2015, as amended:

• Service Fees are the fees approved by the Department to cover the costs of managing, operating and maintaining the common parts, collected from unit owners by the management company.
• The management company may not claim, impose or collect any other fees or amounts, of any type, from the owners.
• An owner may not relinquish a share in the common parts to avoid paying service fees.
• To recover overdue fees, the amount must be endorsed by an auditor certified by the Department, the owner must be notified in writing through the notary public and given 30 days to pay, and the Department may then, at the developer’s request, issue a document that has the force of an executive deed, and may record a non-disposal entry on the unit until the amount is paid.
• The management company has a pledge over the unit to collect service fees, without prejudice to a mortgagee’s rights.

Administrative Decision No. 25 of 2025, as published in the same official compilation, also distinguishes compound fees imposed by a developer for infrastructure, services or facilities from the building-level service fees. Ask, in writing, whether both apply to the unit you are buying.

Owners’ Committees, constituted under the same law, may review budgets, monitor the management company and escalate complaints to the Department if they are not addressed within 60 days. They do not themselves set the fee.

For ADGM buildings on Al Reem Island and Al Maryah Island, registration and building management sit in the ADGM framework. Confirm the approved budget through the building manager and AccessRP, rather than assuming a mainland DARI figure applies.

What do the figures on yourkey.ae project pages mean?

Many off-plan pages include a developer-stated service charge in the catalogue, for example AED 14 per sq ft on Radiant Terrace, Al Reem Island, AED 23–24 per sq ft on several Dubai Hills Estate apartment buildings, or a much higher stated figure on a branded Saadiyat residence. Those numbers, as at 16 Nov 2026, are catalogue estimates. They are useful as a first comparison and useless as a legal rate.

Before you sign:

1. Check the official Dubai index, or request the approved Abu Dhabi schedule.
2. Ask what is included — cooling, community fees, sinking fund, insurance — and what is billed separately.
3. For off-plan, ask how the first-year budget will be set and when it will be filed with the regulator.
4. Budget the charge into your net yield, using the method in Rental yields by area.

A high-quality building with extensive amenities will often cost more to run than a simple mid-rise. That is not automatically good or bad; it should appear in your cash-flow, not as a surprise after handover. See the handover and snagging checklist.

How do service charges affect the purchase itself?

Unpaid charges can delay or block a transfer. In Dubai, a developer or management NOC is typically required so that the seller’s service-charge account is seen to be clear. In Abu Dhabi, a non-disposal entry can be placed on the unit until arrears are paid. Build this into your completion timetable, and do not take a seller’s verbal assurance in place of a written clearance.

Service charges are also part of the true annual cost of holding the property, alongside any mortgage. They belong in the same worksheet as the government transfer fees in Total cost of buying in Dubai vs Abu Dhabi, even though they are not a one-off registration fee.

If you are comparing communities, use official or approved rates for the specific buildings, not a community rumour. Our notes on JVC, Dubai Islands, Al Reem Island and Saadiyat Island flag catalogue figures and send you back to this check.

Frequently asked questions

What is a service charge?

It is the amount an owner pays towards the management, operation, maintenance and repair of the common parts. In Dubai, look the approved rate up on the DLD Service Charge Index. In Abu Dhabi, the fee must be approved by the Department.

Is there a single official service-charge rate for Dubai?

No. The index is project-specific. There is no official citywide dirham-per-square-foot figure.

How are balconies treated on the Dubai index?

For invoices issued after 2019, balcony area is calculated at 0.25% of the suite area. The index also states that the service charge does not include arrears.

Who approves service fees in Abu Dhabi?

The Department approves them. The management company collects the approved fees and may not impose any other fees on owners.

What happens if I do not pay?

In Abu Dhabi, a formal recovery path can lead to an executive deed and a non-disposal entry on the unit. In Dubai, unpaid charges typically have to be cleared before a transfer. Confirm the process for your building.

Can I rely on the service charge printed on a sales brochure?

Not as the official rate. Use the Service Charge Index in Dubai, or the Department-approved schedule in Abu Dhabi. Off-plan estimates can change.

Official sources (as of 16 Nov 2026)

• DLD Service Charge Index — project search; post-2019 balcony rule; arrears excluded.
• Law No. 6 of 2019 — jointly owned property in Dubai.
• ADREC: Law No. 3 of 2015 as amended, and Administrative Decision No. 25 of 2025 — approval, collection, overdue procedure, compound fees.
• yourkey.ae off-plan catalogue — developer-stated figures only, as at 16 Nov 2026.

Last updated: 16 Nov 2026

Abdul Shakoor, Founder & CEO, Your Key — RERA certified (Dubai) and ADREC certified (Abu Dhabi)

For a building-level fee check before you buy, contact Your Key, call or message +971 54 451 7999, or email main@yourkey.ae. Offices in Abu Dhabi and Dubai (DIFC). See also off-plan projects and the mortgage calculator.