§ Tool 06 · Cost of Hold
Service charges —
the silent drain.
Service charges are the annual cost of owning property in Dubai. Know exactly what you'll pay — from standard apartments to branded residences — and how they affect your net yield.
- 4–8 AED/sqft (villas)
- 12–25 AED/sqft (apts)
- 25–50+ AED/sqft (branded)
What is included
What does your SC cover?
Inclusions vary significantly by community tier. Here is what each tier delivers.
Service item Standard Premium Branded Villa
Security & CCTV ✓ ✓ ✓ ✓
Cleaning (common areas) ✓ ✓ ✓ ✓
Landscaping & pools ✓ ✓ ✓ ✓
Building insurance ✓ ✓ ✓ —
Reserve fund (RERA %) ✓ ✓ ✓ ✓
Gym & fitness facilities — ✓ ✓ —
Valet & concierge — — ✓ —
Hotel-grade housekeeping — — ✓ —
District cooling (chiller) — ~ ~ —
Retail / F&B access — — ✓ —
Typical rate (AED/sqft/yr) 12–18 18–25 25–50+ 4–8
✓ Typically included · ~ Sometimes / optional · — Usually not included
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Q&A
Frequently asked.
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01 Who sets Dubai service charge rates?
RERA (Real Estate Regulatory Agency) reviews and approves the annual service charge budget submitted by the Owners Association (OA) or management company. Rates are published per sqft of built-up area and vary by community. -
02 Can service charges increase every year?
Yes, but increases require RERA approval and must be based on actual budgeted costs. Historically, branded and premium towers see higher variability. You can find the approved rate on your RERA SC certificate or the DLD owner portal. -
03 Are service charges included in rent?
For landlords, service charges are typically a direct cost of ownership — not part of the rent. Smart investors deduct them when calculating net yield. Some furnished short-term rentals include SC in quoted weekly rates. -
04 What is a "chiller-free" building?
A chiller-free building includes district cooling (central air-conditioning via chilled water) in the service charge, so residents pay no separate DEWA cooling bill. Non-chiller-free buildings require separate district cooling payments, often AED 5,000–15,000/year for a typical apartment. -
05 What percentage of rent should service charges represent?
A healthy ratio is 8–15% of annual gross rental income. Above 20% signals a high-cost community that may compress net yield. Branded residences commonly run 25–40% of gross rent in SC alone — offset by premium rental rates.