Service charges: the biggest ongoing cost
Service charges in Dubai cover building maintenance, security, pools, gyms, common areas, landscaping, and building insurance. They are set by RERA (Real Estate Regulatory Authority) based on the building's actual costs and are payable annually or quarterly. Rates vary dramatically by area and building quality (per Q2 2026):
| Area | AED/sqft/year | 1,000 sqft apartment | EUR equivalent |
|---|---|---|---|
| JVC (Jumeirah Village Circle) | 8-14 | AED 8,000-14,000 | EUR 2,000-3,500 |
| Dubai Marina | 15-22 | AED 15,000-22,000 | EUR 3,750-5,500 |
| Downtown Dubai | 20-30 | AED 20,000-30,000 | EUR 5,000-7,500 |
| Business Bay | 14-20 | AED 14,000-20,000 | EUR 3,500-5,000 |
| Palm Jumeirah | 18-35 | AED 18,000-35,000 | EUR 4,500-8,750 |
| Dubai Hills Estate | 10-16 | AED 10,000-16,000 | EUR 2,500-4,000 |
Premium buildings (Emaar towers in Downtown, Nakheel on Palm) tend to have higher charges but better maintenance and facilities. Always check the RERA Service Charge Index before buying to understand historical trends for a specific building. Source: RERA.
DEWA (utilities)
DEWA (Dubai Electricity and Water Authority) charges monthly for electricity and water. For an unoccupied apartment, the minimum standing charges are approximately AED 200-400/month. When occupied, a typical 1-2 bedroom apartment uses AED 500-1,200/month. Air conditioning is the largest component, especially June-September. District cooling (in many Marina and Downtown buildings) is billed separately at AED 300-800/month.
Insurance
Building insurance is included in service charges (the developer/management company arranges it). Contents insurance is optional but recommended, costing AED 1,000-3,000/year depending on coverage and property value. If you have a mortgage, the bank requires life insurance (0.5-0.8% of the outstanding loan per year).
Property management (for non-resident owners)
If you rent out your property and live outside Dubai, a property management company handles tenant relations, maintenance, and rent collection. Standard fees: 5-8% of annual rental income. For a property generating AED 80,000/year rent, management costs AED 4,000-6,400/year. Additional fees may apply for tenant finding (typically one month's rent) and maintenance coordination.
Municipality fee (rental only)
If you rent out your property, tenants pay a 5% municipality housing fee on the annual rent, collected by DEWA with the utility bills. While this is technically a tenant cost, it affects the net rent you can charge. For short-term rentals (holiday lets), the fees are structured differently and include tourism taxes.
No property tax
Dubai does not charge annual property tax, wealth tax, or capital gains tax. This is a significant advantage over European markets. However, the combination of service charges, DEWA, and management fees means the total annual holding cost is not zero. For a typical 1-bed apartment in Dubai Marina:
| Cost item | Annual amount (AED) | EUR equivalent |
|---|---|---|
| Service charges | 18,000 | 4,500 |
| DEWA (occupied) | 8,000 | 2,000 |
| Insurance | 2,000 | 500 |
| Management (if renting) | 5,000 | 1,250 |
| Total | 33,000 | 8,250 |
See also: Service charges by area | Complete buying costs
Per Q2 2026. EUR at approximate rate AED 1 = EUR 0.25. Source: DLD | DEWA
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