Few letters worry a Dubai owner more than a notice saying service charges are going up. The increase may be needed to run lifts, cleaning, security, and pools properly, but do not accept any figure without understanding it. In Dubai, service charges in jointly owned property are regulated, budgets are reviewed, and owners have formal ways to ask questions. Knowing who sets the charge, what it pays for, and where to check the approved amount puts you in a much stronger position.
What Service Charges Actually Pay For
A service charge is your share of the shared costs of running and maintaining the common areas and services of your building or community. Depending on the development, that can include security and concierge staff, cleaning, landscaping, lift and fire system maintenance, common-area utilities and chilled water, pool and gym upkeep, waste services, insurance, management fees, and contributions to a reserve fund for major future repairs.
Your share is normally calculated by the size of your unit compared with the total area of the development, using the method in the governing documents. Similar apartments in different buildings can have quite different charges, because facilities, age, and contracts differ. Service charges are separate from your mortgage and your own utility bills.
Who Approves the Charge in Dubai
Under Dubai’s jointly owned property framework, service charge budgets are prepared by the management company and reviewed in line with requirements overseen by the Dubai Land Department and its regulatory arm, the Real Estate Regulatory Agency, often called RERA. Owners associations, made up of unit owners in a development, have a role in representing owners, reviewing budgets and performance, and taking part in general assembly decisions.
The Dubai Land Department’s Mollak system is the official platform used to register management companies, owners associations, budgets, and service charge information for jointly owned properties. If you want to verify what applies to your building, Mollak and the Dubai Land Department are the authoritative sources to start from, rather than a neighbour’s invoice or a social media post.
An increase can arise for legitimate reasons: utility or contractor costs rising, a contract retendered at a higher market rate, older equipment needing repair, insurance costs changing, or a reserve fund being built for work such as lift modernisation.
How to Check an Increase Properly
- Compare the new budget line by line with the previous year, not just the total per square foot.
- Check the approved charge for your development through Mollak or Dubai Land Department channels, and keep invoices and notices.
- Ask the management company and your owners association which costs rose most, what contracts were retendered, and what quotations were obtained.
- Look at whether a rise is a one-off project cost or a permanent increase in running costs, and whether a reserve fund contribution is included.
- Review audited accounts and general assembly papers when they are shared with owners.
Any figure for another building is only a rough comparison; there is no single Dubai rate, because facilities and contracts differ so much.
What Owners Can Do If They Are Unhappy
Start with a written query to the management company and the owners association. Ask for the approved budget, the explanation for each major increase, and the tender summary for large contracts. Put dates and amounts in writing and keep copies.
Take part in your owners association and general assembly. Attendance is often low, yet these meetings discuss budgets and raise service problems.
If you still believe a charge is not approved, is calculated incorrectly, or does not match the official record, you can raise the matter through the Dubai Land Department’s official complaint and enquiry channels and ask what evidence is needed. Keep paying amounts properly due while a query is resolved unless formally advised otherwise, because unpaid charges can lead to penalties or legal action, and arrears can complicate a sale.
Owners who rent out their unit should check their tenancy contract: in many cases the owner remains responsible unless it clearly states otherwise.
Planning Ahead as an Owner
Build service charges into your annual budget and keep a buffer for major works in older buildings. When buying, ask for recent invoices, the current approved rate, and any known major projects. An increase explained with an approved budget and audited accounts may be reasonable; one no one can explain is a reason to ask questions early, in writing, through your owners association and the Dubai Land Department.