Operating Expenses
Operating expenses are the ongoing costs required to maintain and manage property, excluding financing costs and capital improvements. They directly reduce NOI.
| Expense Category | Dubai Context |
| Service charges | AED 15 to 30 per sq ft annually |
| Property management | 5% to 8% of gross rent |
| Maintenance reserve | 1% to 2% of property value annually |
| Insurance | AED 500 to 2,000 annually |
| Utilities (if owner-paid) | Varies, DEWA minimums apply |
| Vacancy period costs | Budget for turnover expenses |
| Fixed vs Variable | Behavior |
| Fixed expenses | Service charges, insurance (occur regardless of occupancy) |
| Variable expenses | Management fees, utilities (linked to occupancy) |
| Semi-variable | Maintenance (baseline plus usage component) |
Related Terms
RERA licensed advisors
Free expert advice
Get property recommendations matched to your goals. No pressure. No commitment.