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Service charges in Dubai

What owners pay each year for their building or community, who approves the amount, how to look it up before you buy, and what happens if it goes unpaid.

What service charges are

Dubai Law No. 6 of 2019 defines service charges as the annual charges collected from owners to cover the cost of managing, operating, maintaining and repairing jointly owned property: the building or community and its shared areas and facilities.

Who sets and approves them

Each jointly owned building or community is run by a management entity. Under Article 27 of Law No. 6 of 2019, it may not charge owners service charges without approval from the Real Estate Regulatory Agency (RERA), and RERA will not approve a budget unless a certified audit firm has approved it first.

RERA oversees budgets, owners' invoices and management companies through its Mollak system. Owners are represented by an owners committee formed under the same law.

How to check before you buy

  1. Look up the approved charges.DLD's Service Charge Index shows the service charges RERA has approved for jointly owned properties. It is on the DLD website, through Mollak, and in the Dubai REST app.
  2. Confirm nothing is owed.A home cannot be disposed of while its service charges are unpaid, and in practice the developer's NOC for a resale confirms dues are clear.
  3. Budget for them every year.Add the annual service charge to your running costs, and take it off the rent before you judge a home's return.

If service charges go unpaid

  • The management entity has a lien on the unit, and the unit may not be sold until the charges are paid
  • After a written notice approved by RERA, the owner has 30 days to pay before the claim can be enforced through the execution judge at the Rental Dispute Settlement Centre
  • The judge may order the unit sold at public auction, and the owner bears the court and legal fees

Questions buyers ask

Who approves service charges in Dubai?

RERA, the Real Estate Regulatory Agency. Under Dubai Law No. 6 of 2019 a management entity may not charge owners without RERA's approval, and RERA requires a budget approved by a certified audit firm.

How can I check the service charges on a building in Dubai?

Use the Dubai Land Department's Service Charge Index, on the DLD website through Mollak or in the Dubai REST app.

Can I sell a property with unpaid service charges?

No. Unpaid service charges are a lien on the unit, and under Law No. 6 of 2019 it may not be disposed of until they are paid.

Who pays service charges, the owner or the tenant?

Law No. 6 of 2019 defines service charges as charges collected from owners.

Sources

Renting out your Dubai property

Registering a tenancy, how far rent can rise, the notice each side must give, holiday home permits and tax, from the laws that apply.

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How to buy a home in Dubai, step by step

From setting your budget to collecting the title deed: every stage of buying a ready home, what you sign and what you pay.

Read the guide