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The ultimate guide to service charges for prime areas in Dubai in 2023
Words by Aneesha Rai in The Guides · Aug 21st, 2019
If you're planning to buy property in Dubai, there are a series of costs that you need to take into account before taking the plunge. A good thumb rule would be to account for an approximate one time cost of 7% of the value of your property as a buffer to manage your costs (This would encompass mortgage fees, DLD registration fees, trustee fees, etc.). Besides your monthly mortgage payments (if any), you also need to take into consideration the service charges of the building which are paid on an annual basis. Here's a guide to service charges in some prominent areas & developments of Dubai to be able to better estimate your costs of purchasing a home in Dubai.
A service charge is the cost of maintaining your property. This charge will usually cover maintenance, cleaning, and repair work in communal areas of the property. It also may include chiller fees. The service provider for these is usually nominated by the owner's association of the development. Please note that in some cases, some apartment developments charge different rates for inclusive balconies/ terraces, which means you may be expected to pay a lower charge. In addition to this, it is important to keep in mind that the service charges for most villa communities are charged based on the plot area. Jumeirah Golf Estates is the exception in this case & charges based on the built up area.
Besides this, you will also contribute a nominal amount to a 'sinking fund'. This sinking fund is used to help maintain the yearly service charge fees and prevent any major ups and downs in service charge fees. The funds are usually utilised in major repairs, especially for those communities that have district cooling units and need chiller replacements. It will also be used in situations where elevators need to be repaired/replaced and maintenance of facade cladding.
Whether you decide to purchase an apartment or one of the lovely villas in Al Barari, expect to pay AED 7.86/sq ft this year for your property.
The Arabian Ranches 1 & Arabian Ranches 2 areas have a very reasonable AED 2.81 and AED 2.50 rate per square foot.
Downtown Dubai is one of the most expensive areas in terms of service charges. However, most Emaar developments have a free chiller option, which makes you not have to worry about paying separate chiller charges per month. Expect to pay more for hotel apartments. Here are some of the more prominent developments & their respective service charges:
1. Burj Khalifa - AED 72 per square foot
2. Burj Vista - AED 13.71 per square foot
3. The Address Downtown - AED 25.14 per square foot
4. The 118 - AED 27.99 per square foot
5. The Residences - AED 24.3 per square foot
Service charges in City Walk run up to AED 12.63 per square foot.
An apartment at D1 Tower could set you back at AED 16.52 per square foot, whereas Palazzo Versace has a much more reasonable service charge at AED 14.46 per square foot.
The service charges for apartments in Dubai Marina vary from building to building. Here are the most popular ones:
1. Cayan Tower - AED 21.43/sqft
2. Marina Gate - AED 21.45 /sqft
3. Emirates Crown - AED 17.02 /sqft
4. Emaar 6 - AED 14.69 /sqft
5. Le Reve - AED 18.25 /sqft
6. Marina Promenade - AED 23.29 /sqft
7. Marina Quays - AED 11.10 /sqft
8. Park Island - AED 10.47 /sqft
20. Trident Bayside - AED 17.11 /sqft
As DIFC operates in a different jurisdiction, there is no available information on service charges as of 2023.
Service charges in Emirates Hills set you back AED 1.70 /sqft.
Apartments in JBR ask for the following service charges:
1. Rimal - AED 15.73/sqft
2. Murjan - AED 14.89 /sqft
3. Sadaf - AED 19.53 /sqft
4. Shams - AED 15.02 /sqft
The service charges for Jumeirah Golf Estates vary with each development:
1. Flame Tree Ridge - AED 5.01 /sqft
2. Hillside - AED 3.33 /sqft
3. Lime Tree Valley - AED 5.01 /sqft
4. Olive Point - AED 6.65 /sqft
5. Orange Lake - AED 5.88 /sqft
6. Redwood Avenue - AED 6.63/sqft
7. Sanctuary Falls - AED 4.56/sqft
8. Sienna Lakes - AED 4.6/ sqft
9. Sienna Views - AED 4.21 /sqft
10. Whispering Pines - AED 5.94 /sqft
11. Wildflower - AED 4.11/sqft
It is the only villa community that charges service fees based on the built up area rather than the plot size. Additional charges also include AED 10,000 per annum for the house membership as well as an additional quarterly car park service charge.
One of the most covetable locations, Palm Jumeirah's Signature villas have some of the most reasonable prices per square foot in terms of service charges. Here is a selection of developments and their corresponding service fees:
1. W Residences - AED 38.19 /sqft
2. Oceana - AED 22.65 /sqft
3. FIVE Palm Jumeirah - AED 30.72 /sqft
4. Serenia The Palm- AED 26.73 /sqft
5. Muraba - AED 27.07/sqft
6. Tiara Residences - AED 19.32/sqft.
Here are some eminent developments in both The Meadows & The Lakes & their respective service fees:
1. Ghadeer - AED 4.14 /sqft
2. Hattan - AED 2.3/ sqft
3. Maeen - AED 4.14 /sqft
4. Zulal - AED 4.14 /sqft
5. The Meadows - AED 2.04/sqft
Editor's note: This guide has been updtated as of February 2023 and may be subject to changes. Please check the Dubai Land Department for any further updates on service charges.