Dubai Service Charges: How to Check a Building’s Running Costs

Two apartments with similar asking prices can have very different running costs. Before comparing them, give the building’s service charges their own line in your budget. A figure copied from a listing is a starting point for questions, not a substitute for the property’s documents.

What are service charges?

Dubai Land Department describes service charges as annual, RERA-approved charges collected from owners to fund the management, operation, maintenance and repair of jointly owned property. They therefore concern more than the condition of an individual apartment. DLD frequently asked questions

For a buyer, the practical question is both “What will I pay?” and “What does that payment cover?” A lower charge alone does not establish that a building offers better value.

Start with the official index

The public Mollak Service Charge Index allows a search by project, usage and year. Record the selected year alongside any result you save. DLD/Mollak Service Charge Index

Use the exact project identity from the property documents. If the building name in the listing differs, ask the agent or management company to resolve that before comparing figures. If the relevant result is unavailable, request supporting documentation rather than substituting a neighbouring tower’s rate.

Reconcile the result with the unit’s paperwork

Request the latest invoice and an up-to-date statement of account for the specific apartment. Ask management to explain the billing period, chargeable area, calculation and any adjustments. A quoted rate and an annual total are different things; check that the same basis is being used throughout.

Useful questions include:

• Is the amount an approved charge or an estimate?
• Which period does the invoice cover?
• Are there outstanding balances, credits or adjustments?
• Which utilities or cooling costs are billed separately?
• Are any additional works or contributions anticipated, and what documentation supports them?

These are due-diligence questions, not a claim that every building has the same billing arrangements. Obtain written answers for the property being considered.

Keep the rest of the budget visible

Create separate budget lines for service charges, repairs inside the apartment, insurance, management where applicable, and financing. For a rental property, also allow for periods without rental income. Do not call the amount left after deducting service charges alone “net profit”: other costs still need to be considered.

Compare the same time period for each shortlisted apartment. Where a cost remains unknown, label it as unconfirmed instead of entering zero. This makes uncertainty visible before it becomes a purchasing decision.

Look at the building as well as the bill

During a viewing, look at lifts, shared corridors, access arrangements and the upkeep of communal facilities. Ask how maintenance requests are handled and whether planned work could affect residents. These observations help frame questions; they do not replace a technical inspection.

A useful comparison combines documented costs with the building’s condition and your intended use. Bring those details to your property discussion with Connexyt Real Estate.

Sources checked on 12 October 2026.