Service Charge

Service charges are the annual fees that owners of units in jointly owned properties — apartment towers, gated communities, mixed-use developments — pay for the operation and maintenance of common areas: cleaning, security, landscaping, lifts, pools, gyms, insurance and a sinking fund for major repairs. They are charged per square foot and vary widely between buildings. In Dubai, service charges are regulated: budgets must be approved through RERA and invoiced through the Mollak system, which is designed to stop arbitrary or inflated charges. Service charges matter in practice because unpaid charges follow the unit — sellers must clear arrears before the Dubai Land Department will transfer title, and owners' associations can pursue defaulting owners. Buyers should always check the current service charge rate and any arrears before committing, since a high or rising charge materially changes the real cost of ownership and the unit's rental yield.