Guide to Dubai Services Charges when buying apartments, Villas and more
When buying property in Dubai, it’s important to consider various expenses. These include the deposit, installment payments (if applicable), agency fees, and other related costs, which a trusted real estate agent can guide you through. One key expense to keep in mind is the service charge, commonly known as the Dubai service charge index, which covers the property’s maintenance and upkeep.
What is a service charge?
In simple terms, the service charge on a property is the annual cost of maintaining it. This fee covers general maintenance, cleaning, repairs, and in some cases, chiller fees. Additionally, property owners contribute to a ‘sinking fund,’ which helps stabilize service fees over time. The sinking fund is used for major repairs, such as weather-related damage or chiller maintenance, beyond routine upkeep.
Service charges are calculated per square foot. For villas, the charge is based on the plot area, except in Jumeirah Golf Estates, where it’s based on the built-up area. For apartments, charges vary by development, with some factoring in the balcony or terrace.
Below, we’ve listed the average annual service charges for Dubai’s most popular residential communities.