Dubai Service Charges Explained: The Service Charge Index, Mollak and Owners Associations

The service charge index is the Dubai Land Department's free public lookup of RERA-approved service charges for each jointly owned building. Search by project, property use and year on the DLD website, Mollak or the Dubai REST app to see the approved rate in AED per square foot per year.

Service charges are the largest running cost of owning a Dubai apartment. They can make the difference between a good investment and a disappointing one, and before the index existed buyers had to rely on whatever figure the agent quoted. This guide explains what the charges cover, who sets them, how to look them up and how to fold them into your budget and yield.

What are service charges in Dubai?

Service charges are the annual fees that owners in a jointly owned property pay to run and maintain its common areas. That covers the lobby, lifts, pool, gym, security, cleaning, landscaping, building insurance, and a reserve fund for major repairs. The legal basis is Law No. 6 of 2019 on jointly owned real property in Dubai. Under it, each owner pays a share of the approved annual budget, calculated by the area of their unit against the total area of the building.

The DLD has confirmed that, under Article 16(b) of that law, the owner is responsible for service and usage charges, even if the property is let, unless the lease says otherwise. Tenants in Dubai normally don't pay service charges, which is one reason rents and yields differ between otherwise similar buildings.

What is Mollak?

Mollak (Arabic for 'owners') is the Dubai Land Department's online system for managing jointly owned properties. It connects owners, management companies, RERA, auditors and banks. Management companies submit annual budgets through it for RERA approval, issue service charge invoices to owners from it, and receive payments into designated accounts. Owners can see approved budgets and their own invoices, and the public service charge index draws on Mollak data.

What goes into a service charge budget?

The approved budget is built up line by line, and the size of each line explains most of the difference between buildings. Typical items include:

• Security and concierge. Guards, CCTV and front desk, often the largest single item in a tower.
• Cleaning and waste. Common areas, facade and window cleaning, and rubbish collection.
• Mechanical and electrical upkeep. Lifts, fire systems, pumps, generators and the building's own cooling equipment.
• Utilities for common areas. Lighting, water and cooling for lobbies, corridors, car parks and pools.
• Amenities. Pools, gyms, landscaping and, in serviced buildings, staff such as valets.
• Insurance, management and audit. Building insurance, the management company's fee and the annual audit.
• Reserve fund. Money set aside for major repairs and replacements, such as lifts, roofing and facades.

The reserve fund is worth a closer look. A building that under-funds it may look cheap today, but can face large repair bills later. Those are usually met by raising the charge. A healthy reserve is one sign of a well-run building. Older towers in particular reach the age when lifts, cooling plant and facades need replacing, so ask how the reserve compares with the works expected over the next five to ten years before you buy.

Who decides the service charge? Owners associations and RERA

Every jointly owned building has an owners association. It is made up of all the unit owners and represented by a committee or board elected from among them. A RERA-registered management company runs the building day to day. The Real Estate Regulatory Agency (RERA), the DLD's regulatory arm, approves the budget and supervises the process.

1. The management company prepares a budget listing each service and its cost, including the reserve fund.
2. It tenders the major contracts. DLD's approval service asks for at least three competing quotes per service provider.
3. It submits the budget through Mollak with the supporting documents.
4. RERA reviews and approves the budget, which sets the rate per square foot for each property use.
5. Owners receive invoices through Mollak, usually in quarterly or other instalments set by the building.
6. The approved rate appears in the service charge index, where anyone can look it up.

Budgets were traditionally approved one year at a time. In December 2025, the DLD introduced an option for management companies to seek approval for a three-year service charge budget through Mollak. The Palm Jumeirah master community was the first to be approved. Where a building adopts it, owners get more predictable charges over several years.

How to check a building's service charges, step by step

1. Open the Service Charge Index on dubailand.gov.ae, in the Mollak portal, or in the Dubai REST app.
2. Choose the project (building or community name, as registered with the DLD).
3. Select the property use. Residential apartment, villa, office or retail, because rates differ by use.
4. Select the year and view the approved rate in AED per square foot.
5. Multiply by the unit's area. Use the area on the title deed or Oqood certificate, not the brochure figure.
6. Compare it with the last two or three years to see the direction of travel, and ask the seller for their latest invoice.

How much are service charges in Dubai per sq ft?

Rates depend on the building's amenities, its age, whether it has a hotel-style service and how large a reserve fund it keeps. The ranges below are indicative market figures for September 2026. Always check the specific building in the index.

Villas look cheaper per square foot because owners maintain their own homes. The charge covers only shared community areas such as roads, parks and security. Master communities such as Dubai Hills Estate or Palm Jumeirah may also levy a separate master community fee on top of a building's own charge. The index shows both where they apply.

How service charges affect your rental yield

Gross yield is annual rent divided by price. Net yield subtracts running costs, and service charges are usually the biggest of them. Take a AED 1,500,000 apartment in Dubai Marina let at AED 110,000 a year. The gross yield is 7.3%. A 1,000 sq ft unit at AED 18 per sq ft pays AED 18,000 in service charges, bringing the yield to about 6.1% before maintenance, letting fees and empty months (indicative figures). Two similar flats can therefore produce quite different returns. Our investment guide compares areas on net, not just gross, yield.

What if you think the service charge is too high?

Start with the approved budget in Mollak and the owners association's minutes. Ask the management company for the breakdown and the tender results. Raise concerns through your owners association committee, which can challenge contracts and push for re-tendering. The DLD has said that RERA-approved invoices are the reference point in disputes over common charges. Such disputes were moved from the Dubai Courts to the Rental Disputes Center under the 2019 law. Our Rental Dispute Center guide explains how that body works.

Questions to ask before you buy

• What is the approved rate this year, and how has it changed over the last three years?
• Are the seller's service charges paid up to date? Ask for the latest Mollak invoice and receipt.
• Is a separate master community fee payable on top of the building charge?
• How is district cooling billed, and are there fixed capacity charges for the owner?
• How healthy is the reserve fund, and are any major works planned?
• Does the owners association have an active committee, and can you see recent meeting minutes?

For a brand-new building, there may not be an approved rate yet. The first budget is usually set around handover. Ask the developer for its projected rate, but treat that as an estimate until RERA approves a budget through Mollak.

Service charges vs other running costs

• Service charges. Paid to the building or community via Mollak, based on unit area. The owner pays.
• Master community fees. Paid for shared infrastructure in larger master-planned areas, where levied separately.
• District cooling (chiller). Many towers use a district cooling provider. Consumption is usually billed directly to the occupant, but capacity charges can sit with the owner depending on the building. Check before you buy.
• DEWA. Electricity and water, billed to the occupant.
• Maintenance inside your unit. Your own responsibility, not covered by service charges.

Check the index before you offer, not after. Compare buildings side by side in areas such as Business Bay, Downtown Dubai or JVC, then browse apartments for sale. For the one-off costs of buying, see our DLD fees guide.