Standard apartment
AED 10 - 16 / sqftBasic landscaping, lift maintenance, security. Minimal leisure facilities.
Examples: JVC, Dubailand, Town Square, Damac Hills 2
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Ownership cost
The recurring cost most buyers underestimate. What service charges cover, the AED/sqft bands by property tier, how the RERA Mollak system protects your money, and exactly how to fold the charge into your net rental yield.
Charged per square foot of the unit's area, billed annually (often payable quarterly). Bands are indicative — always verify against the building's current Mollak statement.
Basic landscaping, lift maintenance, security. Minimal leisure facilities.
Examples: JVC, Dubailand, Town Square, Damac Hills 2
Pool + gym + 24h security + covered parking. Moderate common-area footprint.
Examples: Business Bay, JLT, Dubai Sports City
Concierge, multiple pools, branded common areas, higher chiller load.
Examples: Downtown, Dubai Marina, City Walk
Hotel-grade services, valet, private beach access, premium FM contractor.
Examples: Palm Jumeirah, branded residences, DIFC towers
Master-community maintenance, security gates, shared parks. Lower per-sqft (large plots, fewer shared facilities).
Examples: Arabian Ranches, Emirates Hills, Damac Hills
The headline number breaks down into these components. The reserve fund is the one buyers most often overlook — and the one that protects you from sudden special levies.
| Component | Typical share | Note |
|---|---|---|
| General fund (maintenance + FM) | 40 - 55% | Day-to-day operation: cleaning, landscaping, lift servicing, common-area electricity, facility-management contractor fee. |
| Reserve fund (sinking fund) | 10 - 20% | Legally-required RERA fund for major future repairs (façade, chiller replacement, lift overhaul). Protects owners from sudden large levies. |
| Master-community charge | 10 - 25% | Paid to the master developer for community-wide infrastructure (roads, district cooling network, shared parks). Separate from the building OA. |
| Cooling / chiller (sometimes separate) | varies | District cooling (Empower / Tabreed) is often billed separately by consumption + a fixed capacity charge, NOT inside the service charge. Verify before budgeting. |
| Insurance + admin | 5 - 10% | Building insurance premium + OA administration + annual audit fee. |
Since 2019, Dubai service charges flow through Mollak — a regulated escrow + invoicing platform. Your money is ring-fenced, not handed straight to the developer.
Budget set by OA
The Owners Association (or the developer pre-handover) drafts the annual budget per the Joint Property Declaration formula.
RERA approval
Budget submitted to RERA for review. RERA caps unjustified increases and validates the per-sqft rate against the building's service tier.
Mollak invoicing
Approved charges are billed through Mollak — the DLD-mandated escrow + invoicing platform. Owners pay into a regulated trust account, not directly to the developer.
Ring-fenced spend
Funds can only be released to approved FM contractors against the budget. Reserve-fund money cannot be diverted to operations.
Annual audit
Independent audit of OA accounts, published to owners. Mollak makes the per-line spend transparent to every unit owner.
Gross yield is the headline; net yield is what you keep. A worked example for a premium-tier Marina apartment:
| Property | 1-bed, 750 sqft, Dubai Marina (premium tier) |
| Purchase price | AED 1,500,000 |
| Annual rent (gross) | AED 95,000 |
| Gross yield | 6.33% |
| Service charge @ AED 28/sqft | − AED 21,000 |
| Other costs (insurance, mgmt, vacancy) | − AED 9,500 |
| Net income | AED 64,500 |
| Net yield | 4.30% |
Run your own numbers with the yield calculator.
Always request the latest Mollak statement before offer. A high charge can erase 1.5-2 ppt of net yield.
District-cooling capacity charges can add AED 5,000-15,000/year on top of the service charge. Confirm whether it's in or out.
An OA with no sinking fund will hit owners with sudden special-levy bills for major repairs. Ask for the reserve-fund balance.
Compare against the per-sqft band for the building's tier. A charge 30%+ above peers signals OA mismanagement or an over-specced FM contract.