Service Charge (Maintenance Fee)

An annual fee charged per square foot by the building management for maintenance, common areas, and shared facilities.

What is Service Charge (Maintenance Fee)?

Service charges are annual fees paid by property owners to cover the maintenance and management of common areas, facilities, and building infrastructure. They are calculated per square foot of the property and cover items such as cleaning, security, elevator maintenance, pool/gym upkeep, landscaping, and building insurance. Service charges vary significantly depending on the community, building quality, and available facilities.

Service Charge (Maintenance Fee) in the UAE

In Dubai, RERA regulates service charges through the RERA Service Charge Index, which publishes benchmark rates for different communities. Owners can challenge unreasonable charges through RERA. Typical service charges range from AED 3/sq ft (basic buildings) to AED 30+/sq ft (luxury developments like Palm Jumeirah). These charges are an important ongoing cost that affects your total cost of ownership and should be factored into your mortgage affordability calculation.

Worked Example

1,200 sq ft apartment in Dubai Marina. Service charge: AED 18/sq ft/year. Annual cost: AED 21,600 (AED 1,800/month). This adds approximately AED 1,800/month to your housing costs, on top of your mortgage EMI. A similar apartment in JVC might be AED 10/sq ft = AED 12,000/year (AED 1,000/month).