When buying property in Dubai, most people focus on the purchase price, payment plans, and location. But there’s another cost that can quietly shape your returns — service charges. At Tanami Properties, we believe that knowing how these fees work is just as important as choosing the right neighborhood. Understanding what they are, how they’re calculated, and why they matter can make the difference between a smart investment and an unexpected expense.

What Are Service Charges?

Service charges are fees paid by property owners to cover the maintenance and upkeep of the building or community. Think of them as a shared contribution to keep the lights on, the pool sparkling, and the landscaping flawless.

They usually cover:

• Cleaning and maintenance of common areas
• Security services
• Utilities for communal facilities
• Landscaping and gardening
• Amenities like gyms, pools, and play areas
• Repairs and preventative maintenance

How Are They Calculated in Dubai?

In Dubai, service charges are calculated per square foot of the property and approved annually by the Real Estate Regulatory Agency (RERA).

For example:

If your apartment is 1,000 sq. ft. and the approved service charge rate is AED 15 per sq. ft., your annual service charge will be AED 15,000.

RERA ensures transparency by reviewing budgets and preventing overcharging. You can even check the approved service charge rates for your property on the Dubai Land Department’s Oqood or Dubai REST app.

Why They Matter to Buyers and Investors

Service charges have a direct impact on both your annual rental income and the overall profitability of your investment. High fees can eat into your profit, while poorly managed buildings can lower your property’s value.

For example:

• If you buy a high-end apartment with luxury amenities, expect higher service charges.
• If you’re investing for rental income, understanding these fees upfront ensures your returns aren’t eroded.

Freehold vs. Leasehold Considerations

Service charges apply to both freehold and leasehold properties, but freehold owners generally have more control through the Owners Association to oversee how funds are spent.

How Tanami Properties Helps You Navigate Service Charges

At Tanami Properties, we don’t just help you find the perfect home or investment — we make sure you understand the real cost of ownership.

Our consultants:

• Review service charge history before you buy
• Compare rates across communities
• Assess whether the fees align with market standards and amenities offered
• Guide you toward developments with a strong track record of facility management

Final Thoughts

Service charges aren’t just another bill — they’re the heartbeat of your community. They keep your building in top shape, your facilities running smoothly, and your property value protected.

Before signing on the dotted line, make sure you know exactly what you’re paying for — and that it’s worth it.

With Tanami Properties, you’re never left guessing. We give you the full picture, so your investment is as solid as the foundations it’s built on.