Service Charges

Service charges are annual fees paid by property owners to cover common area maintenance, building operations, amenities, and management in jointly owned developments.

Charge ComponentPercentage of Total
Hard FM (technical services)40% to 60%
Soft FM (cleaning, security)25% to 35%
Utilities (common areas)5% to 10%
Management fee8% to 12%
Reserve fund contribution10% to 15%
Insurance3% to 5%
Dubai Service Charge RangesAED per sq ft annually
Budget developmentsAED 12 to 18
Mid-range apartmentsAED 18 to 25
Premium apartmentsAED 25 to 35
Luxury developmentsAED 35 to 50+
Villas in compoundsAED 10 to 20
Payment scheduleQuarterly billing standard

Related Terms

Owners Association (OA)Common Area Maintenance (CAM)Operating ExpensesSinking FundHOAOperating ExpensesMaintenance FeesOwners Association (OA)

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