Property Service Charges in Dubai – Buyer’s Guide

What are Homeownership Service Charges?

In Dubai’s residential buildings or communities, homeownership service charges are annual fees paid by the property owner for the maintenance and upkeep of common areas. These charges typically cover different property services and management aspects such as amenities, maintenance, cleaning, security, landscaping, and general upkeep of the area or building.

Factors Determining Service Charge Costs

The cost of service charges varies depending on a number of factors, namely:

• Building or community location – The area that the property is located in
• Project type – The building or community in the area
• Property use – This includes residential, retail, commercial offices, serviced apartments, etc.

Main Categories of Service Charges

These main categories include:

• Services
• Maintenance
• Improvement
• Utility services
• Management services
• Insurance
• Unit A/C for apartments and master community for villas and townhouses

Common Amenities Covered Under Service Charges

The most common amenities included in service charges are:

• Concierge / reception
• Wi-Fi
• Shared gym
• Balcony
• Elevator
• Shared pool
• Parking
• Restaurant
• Shared spa
• Room service
• Green spaces
• Retail & entertainment

Maintenance and Improvement Charges

Maintenance charges cover housekeeping, repairs, and security of the property and common areas. Improvement charges include expenses for any construction work needed for repairs, reconstruction, renovation, and general upkeep of the property and common areas. This is a very useful service for out-of-country investors but also those homeowners who don’t want to manage the property rental operations themselves.

Master Community Fee

The master community fee covers the community’s infrastructure maintenance which includes roads, green spaces, underground services, storm drains, sewage lines, and pavements. Since 2019, homeowners have been responsible for invoicing and collecting the service charges which were previously the responsibility of property developers. The service charges are collected in Dubai Land Department (DLD)-approved banks, and a breakdown of the charges is shared with owners, allowing them to see how different fees impact maintenance and upkeep of buildings.

A Glance at Azizi Building Services Charges

To provide some perspective on the various costs associated with service charges, here’s an example of the charges for Azizi Daisy and Azizi Farishta buildings in Al Furjan neighborhood:

• Azizi Daisy: Total Annual Service Charge – 10.36 AED per square foot
• Azizi Farishta: Total Annual Service Charge – 10.22 AED per square foot

Breaking Down the Costs

In the case of Azizi Daisy and Azizi Farishta, the charges were divided as follows:

• Maintenance: 2.10 AED & 2.02 AED per sq.ft., respectively
• Improvement / hotel services: 2.92 AED & 2.80 AED per sq.ft., respectively
• Utilities Services: 0.55 AED & 0.52 AED per sq.ft., respectively
• Management Services: 2.70 AED & 2.72 AED per sq.ft., respectively
• Insurance: 1.10 AED & 1.12 AED per sq.ft., respectively
• Master Community General Fund Reserved Fund Total: 0.15 AED & 0.14 AED per sq.ft., respectively
• Unit A/C / additional: 0.52 AED & 0.50 AED per sq.ft., respectively

In Summary

Homeowners in Dubai must consider various service charges based on several factors, including location, property type, and usage. It is essential to understand the different categories of service charges and how they impact overall maintenance and upkeep costs as a property owner. By doing so, homeowners can make better-informed decisions about their investments and take advantage of the benefits provided by these fees.

FAQ: Property Service Charges in Dubai – Buyer’s Guide