In a jointly owned property, lifts, pool, security, cleaning and the facade all cost money to run. These are charged as a service charge per square foot per year across the owners. The manager does not set the amount alone: RERA reviews and approves the budgets through the Mollak system before they apply (source: Dubai Land Department).
The RERA Service Charge Index adds transparency by showing the approved rate for each development (source: Dubai Land Department). Before buying you can compare whether an address’s charges sit in the normal range. Depending on the fit-out, rates run from simple buildings to luxury towers with a markedly higher charge.
For a buyer’s yield calculation the service charge is the main ongoing cost besides management and any district cooling. It reduces the net rent and belongs in every calculation before purchase.
See how we keep charges and operation under control on our property management in Dubai page.
