Dubai has no annual property tax — one of its most compelling advantages for international investors. However, owning property in Dubai does come with ongoing costs that every buyer should understand and budget for. The primary costs are service charges, DEWA (utilities), and property management fees if you rent the property out.
Service Charges — What They Are
Service charges (also called maintenance fees or OA fees) are annual fees paid by all property owners in a building or community to cover the cost of shared facilities and building management. They are mandatory — failure to pay can result in legal action and, in some cases, restriction of building access.
What Service Charges Cover
- Building lobby management, cleaning, and security
- Elevator maintenance and operation
- Swimming pool and gym maintenance
- Landscaping and common area upkeep
- Building insurance (structure and common areas)
- Pest control, waste management
- Building management company fees
- Reserve fund contributions (for major future maintenance)
Service Charge Rates by Building Type (2026)
Service charges in Dubai are measured in AED per square foot of the unit's registered area (per year). Rates vary significantly based on building tier, amenities, and location:
Basic / Mid-Tier Apartments (JVC, Discovery Gardens, International City)
Minimal amenities, basic building management. A 700 sqft studio here costs AED 3,500–7,000/year in service charges.
Mid-Range Buildings (Dubai Marina, JLT, Business Bay)
Pool, gym, concierge, basement parking. A 1,000 sqft 1BR in Dubai Marina: AED 10,000–18,000/year.
Premium Buildings (Downtown Dubai, DIFC, Dubai Hills)
Full lifestyle amenities, premium building management. A 1,500 sqft 2BR in Downtown: AED 27,000–37,500/year.
Ultra-Luxury (Palm Jumeirah, Bluewaters, Emaar Beachfront)
Private beach access, concierge, valet, multiple pools, spa. A 2,000 sqft villa/penthouse: AED 50,000–80,000/year.
RERA regulation: Service charge budgets must be approved by RERA annually. The Owners Association (OA) is required to publish audited accounts. RERA sets a maximum increase cap to prevent unreasonable rises. You can check any building's registered service charge rate on the RERA website.
DEWA — Electricity & Water
DEWA (Dubai Electricity and Water Authority) provides electricity and water to all Dubai properties. DEWA costs are paid by whoever occupies the property (owner or tenant) and are separate from service charges.
- Monthly DEWA for a 1BR apartment: AED 400–800 (depending on usage, cooling system, and season)
- Monthly DEWA for a 2–3BR apartment: AED 700–1,500
- Monthly DEWA for a villa: AED 1,500–4,000+
- District cooling (chilled water A/C): Some buildings use district cooling, which is billed separately (Emicool, Empower) and can be AED 500–2,000/month additional
Property Management Fees
If you rent out your Dubai property — especially as a non-resident investor — you will typically engage a property management company. Standard fees:
- Long-term rental management: 5–8% of annual rent + one-time letting fee (equivalent to 5% or one month's rent)
- Short-term / holiday rental management: 20–30% of gross rental income (includes listing, cleaning, guest management)
- Minimum management fees: Some managers charge a minimum of AED 3,000–5,000/year regardless of rental income
Annual Cost Summary — Indicative Examples
| Property Type | Service Charge | DEWA (if owner-occupied) | Insurance | Total (approx.) |
|---|---|---|---|---|
| Studio, 450 sqft, JVC | AED 3,600 | AED 4,800 | AED 800 | AED 9,200 |
| 1BR, 750 sqft, Dubai Marina | AED 9,000 | AED 7,200 | AED 1,200 | AED 17,400 |
| 2BR, 1,200 sqft, Downtown Dubai | AED 24,000 | AED 12,000 | AED 1,800 | AED 37,800 |
| 3BR Villa, 2,500 sqft, Dubai Hills | AED 30,000 | AED 24,000 | AED 3,000 | AED 57,000 |
| 4BR Penthouse, Palm Jumeirah | AED 90,000 | AED 36,000 | AED 6,000 | AED 132,000 |
Note: Figures are indicative for 2026. Actual costs vary by building, usage, and management arrangements. No property tax is included — Dubai has none.
The Reserve Fund
As part of the service charge, property owners contribute to a Reserve Fund (Major Maintenance Reserve). This fund covers large, infrequent costs such as elevator replacement, facade repairs, or major structural work. RERA requires Owners Associations to maintain an adequately funded reserve. Buildings with healthy reserves are better managed and experience fewer special levy surprises.
Frequently Asked Questions
Ongoing Cost Questions
What are service charges in Dubai property?
Service charges are annual fees paid by property owners to maintain shared building facilities — lobby, gym, pool, elevators, security, landscaping, and building management. In Dubai, they range from AED 5/sqft for basic buildings to AED 30+/sqft for ultra-luxury towers. They are regulated by RERA and managed by the Owners Association (OA).
Are there property taxes in Dubai?
No. Dubai has no annual property tax. There is no council tax, stamp duty (beyond the one-time 4% DLD fee at purchase), capital gains tax, or inheritance tax on property. This is one of the key advantages of Dubai property ownership compared to Europe, the US, or the UK.
How much are service charges in Dubai Marina or Downtown Dubai?
In Dubai Marina and Downtown Dubai, service charges typically range from AED 12–22/sqft annually. For a 1,000 sqft apartment, this equals AED 12,000–22,000 per year (approximately USD 3,300–6,000). Ultra-luxury buildings like those on Palm Jumeirah can reach AED 25–40/sqft.
Who pays service charges — the owner or the tenant?
Service charges are the legal responsibility of the property owner, not the tenant. However, many landlords factor service charges into the rent calculation. If you rent out your property, your property manager can advise on how service charges are typically treated in your building's rental market.
Can I check the service charge for a specific building in Dubai?
Yes. RERA publishes registered service charge rates for all buildings at dubailand.gov.ae. You can also request the Owners Association's most recent approved budget and audited accounts from the building management before purchasing.
