TL;DR
Service charges
in Dubai 2026 range from 10 AED/sqft in older Dubailand communities to 40+ AED/sqft in branded-residence luxury towers. The biggest cost drivers are amenity load (pool count, gym sqft, valet), [district cooling](/learn/glossary/district-cooling) chiller charges, and the building's age (older buildings carry larger sinking-fund top-ups).
All service charges must be filed annually with Mollak, the Dubai Real Estate Regulatory Agency (RERA) service-charge platform. This piece gives the 2026 per-sqft ranges by area and the four steps to dispute an unjustified increase.
How Mollak filings work
Mollak is the RERA-mandated service-charge management platform launched in 2019. Every Dubai jointly-owned property (apartment buildings, villa communities with shared amenities) must file its annual service-charge budget with Mollak, with the budget reviewed by an independent auditor and approved by the Owners' Association (OA).
Three things every owner should pull from Mollak before buying:
- The current-year approved service charge per sqft
- The trailing 3-year history (look for sudden spikes)
- The sinking-fund reserve balance (low reserves predict near-term special assessments)
The Mollak file also discloses the OA management entity and the breakdown by line item: chiller, security, cleaning, master-community fee, sinking fund.
Service charge ranges by area, 2026
| Area | Apartments AED/sqft | Villas/townhouses AED/sqft |
| ------ | ------ | ------ |
|---|
| Downtown Dubai | 22-38 | n/a |
| Dubai Marina | 18-32 | n/a |
| Palm Jumeirah | 28-45 | 14-22 |
| Business Bay | 16-26 | n/a |
| Jumeirah Village Circle | 12-18 | 9-13 |
| Dubai Hills Estate | 14-22 | 8-14 |
| Discovery Gardens | 11-14 | n/a |
| Arabian Ranches | n/a | 6-12 |
| Dubai Sports City | 12-16 | 9-13 |
| Town Square | 13-17 | 7-11 |
| MBR City District One | 16-24 | 10-16 |
| Dubai Creek Harbour | 18-26 | n/a |
Branded-residence units (St. Regis Marina, Address Downtown, Bvlgari) typically sit at the top of the area band, sometimes pushing 40-50 AED/sqft due to concierge and brand-licence costs.
What drives the spread within an area
Three drivers explain most of the within-area variance:
- District cooling: buildings on Empower or Tabreed chilled-water systems carry a fixed monthly chiller bill of AED 50-180/month per ton of cooling, in addition to the per-sqft service charge. A 1,000 sqft 1-bed typically consumes 1.5-2.5 tons.
- Amenity load: pools, gyms, kids' clubs, valet parking, and 24/7 concierge each add 1-4 AED/sqft. Branded-residence amenities (Michelin-star restaurant, residents' beach club) can push the spread to 8-12 AED/sqft.
- Building age: buildings 10+ years old face larger sinking-fund top-ups for capex (lift replacement, facade refurbishment) - often 3-6 AED/sqft above newer comparables.
For a complete service-charge breakdown by area see our average service charge per sqft in Dubai piece.
How to dispute an unjustified increase
RERA rules require an annual OA general meeting to approve the budget. If you believe an increase is unjustified, the dispute process:
- Request the audited budget detail from the OA manager (must be provided within 14 days under RERA rules)
- Raise the dispute at the AGM with written documentation
- If unresolved, file with RERA's Service Charge Department - they can suspend collection pending review
- Final escalation: Dubai Court Property Disputes Section
See our challenging service charges legal process explainer for the full procedural walk-through.
How to underwrite service charge into yield
A practical underwriting rule: annual service charge in AED divided by purchase price in AED gives you the service-charge drag percentage. On a 1.2m AED apartment with 22 AED/sqft service charge on 750 sqft, the drag is 16,500/1,200,000 = 1.38% of property value, or roughly 18% of a 7.5% gross yield.
Always pull the unit-specific Mollak filing before underwriting. Within a single tower, service charges can vary by 3-7 AED/sqft across sub-categories (corner units with larger balcony allocation; podium units with restaurant-induced higher maintenance).
Use our ROI calculator to flow service charges through to net yield.
Bottom line
Service charge is the single most-overlooked cost line in Dubai yield underwriting. The 2026 ranges span 11 AED/sqft (Discovery Gardens) to 45+ AED/sqft (Palm Jumeirah branded residences), with district cooling and amenity load explaining most of the variance.
Pull the Mollak filing, model service charge as a deduction from gross rent, and use the ROI calculator to test your net yield. For a deeper area-by-area service-charge analysis see our Dubai service charges by area and developer 2026 piece.
Frequently Asked Questions
What is the average service charge per sqft in Dubai in 2026?
The citywide median for apartments is 16-18 AED/sqft. The range spans 10-45+ AED/sqft, with mid-segment areas like JVC and Discovery Gardens at the low end and luxury branded residences at the high end.
Are Dubai service charges regulated?
Yes - under the RERA Mollak platform launched in 2019. Every jointly-owned property must file its annual service-charge budget with Mollak, audited and approved at the Owners' Association annual general meeting.
Can a service charge increase mid-year?
Only after the OA budget is approved at the AGM and the new amount is filed with RERA. Mid-year increases without that filing are not enforceable.
How do I dispute a service charge I think is unjustified?
Step 1: request the audited detail from the OA manager (14-day legal window). Step 2: raise it at the AGM. Step 3: file with RERA's Service Charge Department. Step 4 (final): Dubai Court Property Disputes Section.
Does the service charge include district cooling?
Usually not. Chilled-water systems from Empower or Tabreed are billed separately at AED 50-180/month per ton of cooling, in addition to the per-sqft service charge.
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