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A complete guide to service charges in Dubai

Do you want to buy a home in Dubai? It is essential to become familiar with all of the city’s service charges in order to understand the additional costs associated with purchasing a home. Here is a useful information from YP on service charges in Dubai and how they effect property prices.

Relevant:Β  Top Areas to Buy Property in Dubai

WHAT ARE SERVICE CHARGES IN DUBAI AND WHERE DO THEY APPLY?

In Dubai, service charges are recurrent payments that homeowners pay for the care and repair of residential buildings or communities. They address many elements of property management such as maintenance, cleaning, security personnel, landscaping, and general care of the area/building.

Service costs in Dubai apply to all sorts of properties, whether they are villas or apartments, retail or commercial. These prices are calculated per square foot and can range from AED 3 to AED 30 or more.

INDEX OF DUBAI SERVICE CHARGES BREAKDOWN

The overall cost of service charges charged to a property varies based on a number of criteria, including:

  • Community Location – The area in which the property is located.
  • The building/sub-community in the neighborhood is the project type.
  • Property Usage – The reason for buying the property. This comprises retail, commercial, and residential properties, as well as offices, villas, and serviced apartments.
Service charges are like property management fees in Dubai
In Dubai, service costs are similar to property management fees. They add up to your overall property cost.

For example, service costs in more upscale areas may be more than those in a more budget-friendly location for a comparable property. The service rates for Meydan villas for sale, for example, are more than those for JVC villas for sale.

The developer and the size of a homeowner’s property are two more elements that influence the cost of service fees in Dubai. According to the aforementioned specifications, homeowners will be paid a series of normal service costs for the property, such as DEWA connection setup, maintenance, and so on.

The following is a list of the most common service adjustments that are often invoiced to the owner.

  • Services
  • Maintenance
  • DEWA Utilities
  • Management
  • Insurance
  • Master Community
Aside with these fees, developers also impose a Sinking Fund. The sinking fund for Dubai homes serves as a reserve money for any substantial repairs or maintenance that may be necessary. The homeowner is also responsible for this sinking money. It will cover roof repair, refurbishment, or replacement, external cladding, fire alarms and safety systems, A/C systems in common spaces, windows, balconies, parking areas, elevators, and other similar items. Utility expenses for chiller-free and district cooling systems are also included in the overall cost.

VILLA AND APARTMENT SERVICE CHARGES IN DUBAI COMPARISON

Let’s have a look at some samples of Dubai service charges index in the emirate’s most popular regions.

DUBAI APARTMENT SERVICE FEES

We used Arena Apartments in Dubai Sports City as an example of apartment service costs. Here are the service costs you’ll have to pay if you live in this residential building.
Service ChargesRate (AED/Sq.Ft)
Services2.58
Maintenance2.00
Utilities Services1.54
Management Services1.26
Insurance0.25
Master Community1.15
Reserved Fund0.96
Total9.74

Service Charges FOR DUBAI VILLAS

The charges for villas in Dubai varies somewhat from those for flats. Here’s an example from Al Reem 1 in Arabian Ranches, a popular city community for purchasing villas.
Service ChargesRate (AED/Sq.Ft)
Services0.59
Maintenance0.42
Utilities Services0.33
Insurance0.01
Master Community1.31
Reserved Fund0.15
Total2.81

Please keep in mind that these are the most recent service prices and are subject to change. For the most up-to-date breakdown of service costs for every property type in Dubai, we recommend visiting the Dubai Land Department’s official service charge index webpage.

AR
AR

AR is a word at heart, despite being a minimalist at heart. He is always looking for new topics to write about.

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This Blog is provided solely for educational reasons, including broad information and a general comprehension of its content, including related laws and regulations, and is not intended to give particular legal advice. The Blog is not intended to replace competent advice from a registered expert.

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