When you buy a property in Dubai, there are several costs you need to be aware of. There is the purchase price, plus costs such as stamp duty and sales tax. You will also have to pay a monthly service charge on the property. This is a fixed amount charged per meter, calculated based on the area of your apartment or villa. Your real estate agent can help with this process.
What is a service charge?
Service fees are the costs incurred by the building owner for maintaining and managing the common areas. Maintenance involves general cleaning and maintaining the buildings, as well as repair work such as garbage disposal and plumbing. Management involves responsiveness, meeting regulatory obligations and overseeing the general management of the buildings. The ancillary charges included car parking charges, service charges, sinking fund contributions and special levy assessments, if applicable. The sinking fund is money that isn't needed for normal building maintenance but instead will be used for major expenses. These expenses are usually bigger ticket items, such as replacing roofs, fixing major leaks or other expensive repairs, but eventually the sinking fund will be used to replace things like water heaters, roofs and windows.
Service charges apply to each apartment owner. The service charge is calculated on a per square foot basis, with the amount varying between developments depending on factors such as which floor the apartment is located on, whether it has a terrace or balcony, etc.
Below is a summary detailing the average annual service charges in some of Dubai’s popular communities:
Al Barari:
All developments in Al Barari, including The Residences, The Reserve, Seventh Heaven and The Nest, will have minimum pricing of AED 7.86 per sq ft. and a maximum of AED 20.49 per sq ft.
Arabian Ranches:
There are minimal differences in service charges for Arabian Ranches 1 and 2 depending on which neighbourhood you live in. However, in Arabian Ranches 1, you can expect to pay around AED 0.89 per sq ft, whereas in Arabian Ranches 2, you can expect to pay around AED 2.44 per sq ft.
Damac Hills:
Depending on which project you choose in the Damac Hills community, service charges vary dramatically. An escalating sequence of charges, a few key projects are mentioned below.
- Golf Terrace - AED 16.6 per sq ft
- Loreto - AED 10.01 per sq ft
- Golf Vista - AED 14.47 per sq ft
- Golf Veduta - AED 13.25 per sq ft
DIFC
Service charges in DIFC average AED 19.15 per sq ft, with Skygardens being the least costly at AED 16.55 per sq ft and Ritz Carlton being the most expensive at AED 26.13 per sq ft.
District one:
The service price for District One villas and mansions is AED 15.03 per sq ft.
Downtown Dubai:
Downtown is noted for having the highest service charges because it is one of Dubai's most prestigious areas. The minimum fee is AED 11.01 per sq ft on average across the area, however this isn't a particularly useful metric because the actual charge can be more than three times that depending on which tower you're in.
Some of the most well-known projects in Downtown Dubai, as well as their associated fees, are listed below. The Burj Khalifa, unsurprisingly, stands at the top of the list.
- Burj Vista - AED 17.44 per sq ft
- The 118 - AED 37.59 per sq ft
- Vida Residences Downtown - AED 23.79 per sq ft
- The Address Fountain Views - AED 25.42 per sq ft
- The Address Downtown - AED 41.35 per sq ft
- The Address BLVD - AED 28.03 per sq ft
- Burj Khalifa - AED 67.88 per sq ft
Dubai Hills Estate
The minimum service charges for the properties at Dubai Hills Estate is AED 16.6 per sq ft, with some of the larger properties charging as much as AED 18.3 per sq ft.
Dubai Marina
The community minimum service charges is AED 3.11 per sq foot, with no significant differences. The following are some of the most important projects.
- Emirates Crown - AED 12.50 per sq ft
- No.9 - AED 13.29 per sq ft
- Sparkle Towers - AED 8.50 per sq ft
- Marina Gate - AED 13.47 per sq ft
- Elite Residence - AED 12.68 per sq ft
- Princess Tower - AED 12.80 per sq ft
- Le Reve - AED 18.66 per sq ft
- Cayan Tower - AED 10.70 per sq ft
- 23 Marina - AED 17.40 per sq ft
- Silverene Towers - AED 19.81 per sq ft
- Marina Promenade - AED 15.95 per sq ft
- Park Island - AED 13.86 per sq ft
Emirates Hills:
AED 1.70 per sq ft is the service price for Dubai's most upscale residential neighbourhood.
JBR
At Jumeirah Beach Residence, you can expect to pay AED 3.40 per sq ft, which is quite common across all of the building's apartment towers.
Jumeirah Golf Estates:
The service charge is AED 6.24 per sq ft on average throughout all JGE subcommunities, except Hillside, where it is AED 5.13 per sq ft. It's worth noting that service charges in Jumeirah Golf Estate only apply to the villa's built-up space, not the plot.
Jumeirah Islands
AED 14.66 per sq ft is the service charge in this lovely beachfront development.
Jumeirah Park:
You will pay AED 2.61 per sq ft on average in Jumeirah Park.
Jumeirah Village Circle:
In Jumeirah Village Circle, the minimum service charge is AED 0.86 per sq ft, with little difference amongst projects.
Mudon
Mudon, service charges here amount to AED 0.83 per sq ft.
Palm Jumeirah:
While the minimum service charge on the island is AED 0.08 per sq ft, the amount you pay varies greatly depending on the type of property. Below is a summary of costs for a villa and a few alternative apartment complexes.
Villas
Service charges for the villa on the Palm Jumeirah fronds are as follows:
- Signature Villas - AED 1.84 per sq ft
- Canal Cove Villas - AED 3 per sq ft
- Garden Homes - AED 6.95 per sq ft
Apartments
- Azure Residences - AED 6.80 per sq ft
- Shoreline Apartments - AED 11.5 to AED 12 per sq ft
- Golden Mile - AED 48.95 per sq ft
- Muraba - AED 17.5 per sq ft
- Tiara Residences - AED 18.32 per sq ft
- Serenia Residences - AED 19.39 per sq ft
- Five Palm Jumeirah - AED 16.80 per sq ft
- Oceana Residences - AED 21.49 per sq ft
Town Square:
The service charge for apartment developments in Town Square is AED 13.86 per sq ft, and AED 2.45 per sq ft for townhouses.
Victory Heights:
The community's average service price is AED 3.78 per sq ft in Victory Heights.