What is the Dubai Service Charge Index?

The Dubai Service Charge Index is a DLD-maintained database of filed service charge rates for every registered strata-title building in Dubai. It is administered through the RERA Mollak platform and accessible via the Dubai REST app. The index records the AED-per-square-foot annual rate approved by each building's Owners Association and filed with RERA — the definitive figure for calculating your annual maintenance liability.

How do I find service charges for a specific Dubai building?

Three methods: (1) Search the building name on the RERA Mollak portal at mollak.dubailand.gov.ae; (2) Open the Dubai REST app, navigate to Property Search, and view the building's filed service charge rate; (3) Ask your broker to provide the Mollak-verified AED/sqft rate before you commit. Never rely on developer SPA estimates, marketing brochures, or listing site figures — these understate actual charges by 20–50% on new buildings.

How are Dubai service charges calculated?

Annual service charge = registered unit area (sqft) × filed AED/sqft rate. Example: a 750 sqft apartment in a building with a Mollak-filed rate of AED 18/sqft = AED 13,500 per year. District cooling may be billed separately through Empower, Tabreed, or DEWA — check whether your building includes chilled water in the service charge budget or charges it as a separate line item.

What is Mollak and how does it relate to service charges?

Mollak is RERA's online platform for Owners Association governance, service charge filing, and financial transparency. Every strata-title building in Dubai must register on Mollak, file annual service charge budgets, and maintain a reserve fund. Mollak is the regulatory source of truth for what owners actually pay — not what developers estimate at launch.

Can service charges increase after I buy?

Yes. Service charges are set annually by the Owners Association general assembly and filed with RERA through Mollak. Increases require OA approval and RERA filing. In practice, many Dubai buildings have seen 5–10% annual increases over the past five years due to utility inflation, aging infrastructure maintenance, and facilities upgrades. Model a 5–10% annual escalation in long-term yield projections.

Why do developer service charge estimates differ from actual charges?

Developers estimate service charges at launch before the building operates — before real maintenance costs, insurance premiums, security contracts, and reserve fund contributions are known. The gap is systematic: SPA estimates of AED 10–12/sqft often settle at AED 16–22/sqft by year three. For off-plan purchases, use Mollak data from comparable completed buildings in the same community as your baseline, then add 10–15% contingency.

Do service charges affect rental yield?

Service charges are the single largest owner cost after mortgage interest — typically consuming 15–25% of gross rental income on mid-market properties and 25–35% on premium waterfront stock. A unit showing 8% gross yield with AED 22/sqft charges on 800 sqft may deliver only 4.5% net yield. Always model net yield using Mollak-verified charges, not gross yield alone.

Who pays service charges — the landlord or tenant?

The property owner pays service charges in Dubai. Tenants pay their own DEWA electricity and water bills and may pay district cooling separately. Service charges are never legally passable to tenants. When calculating investment yield, service charges are always an owner cost deducted from gross rent.

Dubai Service Charge Index Explained: Mollak, REST, and

Every Dubai property agent can quote you a gross rental yield. Almost none of them open the DLD Service Charge Index on Mollak before doing so. Yet service charges are the largest predictable cost in your annual ownership budget — often consuming 15–25% of gross rental income on mid-market stock and 25–35% on premium waterfront towers.

The Service Charge Index exists precisely because this cost was opaque for years. RERA built Mollak to force every Owners Association to file audited budgets publicly. Dubai REST put those filings in your pocket. This guide explains how the system works, how to look up your building’s real rate, and how to model charges accurately before you sign a Sales and Purchase Agreement.

Quick answer: Service charge = registered sqft × Mollak-filed AED/sqft rate. Verify via Mollak portal or Dubai REST app — not SPA estimates. Mid-market buildings run AED 12–22/sqft; premium waterfront AED 28–50/sqft. Charges typically consume 15–25% of gross rent and are the owner’s legal obligation.

Area-by-area charge ranges: Service Charges in Dubai by Area. Net yield methodology: Gross vs Net Yield Dubai.

The three systems you need to understand

Dubai service charge transparency runs through three connected platforms. Confusing them costs investors money.

System	Operator	What it does	When you use it
Service Charge Index	DLD / RERA	Published database of filed AED/sqft rates per building	Before purchase — verify actual charges
Mollak	RERA	OA governance, budget filing, reserve fund tracking, owner voting	Deep due diligence — full OA financials
Dubai REST	DLD	Mobile app — property search, escrow check, service charge lookup	Quick verification on-site or remotely

Service Charge Index is the output — the number you multiply by your unit area. Mollak is the engine — where Owners Associations file budgets and RERA approves rates. Dubai REST is the access layer — the consumer-facing app that surfaces Index data without navigating government portals.

All three should show the same AED/sqft figure for a given building in a given year. If they do not, escalate with your broker before proceeding.

How service charges are set: the annual cycle

Understanding the governance cycle explains why charges change and why developer estimates diverge from reality.

Step 1 — Budget preparation (OA management company)

The Owners Association management company (typically JLL, Asteco, Better Homes, or Farnek) prepares an annual budget covering:

Cost category	Typical budget share
Building maintenance and repairs	25–35%
Security (guards, CCTV, access control)	15–20%
Cleaning and waste management	10–15%
Building structure insurance	5–10%
Lifts and MEP systems	8–12%
Landscaping and common areas	5–10%
District cooling (if building-managed)	10–20%
Reserve fund (RERA-mandated 10%)	10%
OA management fee	5–10%

Step 2 — General assembly approval

Unit owners (or their proxies) vote on the proposed budget at the annual general assembly. Approved budgets set the total annual service charge pool for the building.

Step 3 — RERA filing via Mollak

The approved budget is filed on Mollak. RERA reviews the filing and publishes the resulting AED-per-square-foot rate on the Service Charge Index. This is the legally operative rate owners pay.

Step 4 — Owner invoicing

Owners receive quarterly or annual invoices based on: registered unit area (sqft) × filed AED/sqft rate. Late payment can result in OA placing a lien on the unit at DLD — affecting your ability to sell or mortgage.

Why this matters for buyers: the rate you see on Mollak today reflects last year’s OA budget approval. Next year’s rate may be higher — especially in buildings under 5 years old where maintenance cycles are just beginning.

The formula: calculating your annual liability

The calculation is simple. The inputs are where investors get caught.

Annual service charge = Registered unit area (sqft) × Mollak-filed AED/sqft rate

Worked example — Business Bay 1-bed

Input	Value
Purchase price	AED 1,300,000
Registered unit area (DLD Unit Profile)	780 sqft
Mollak-filed rate	AED 21/sqft
Annual service charge	AED 16,380
Gross annual rent (Ejari transacted)	AED 95,000
Service charge as % of gross rent	17.2%

Worked example — Palm Jumeirah apartment

Input	Value
Purchase price	AED 2,800,000
Registered unit area	950 sqft
Mollak-filed rate	AED 34/sqft
Annual service charge	AED 32,300
Gross annual rent (Ejari transacted)	AED 145,000
Service charge as % of gross rent	22.3%

The registered area trap

Marketing brochures often quote gross area including balcony, common wall thickness, or proportional share of lobby space. DLD registers net sellable area on the Unit Profile — which can be 5–15% smaller than the marketed figure.

Area type	Typical size (1-bed example)	Charge at AED 20/sqft
Marketing brochure area	820 sqft	AED 16,400
DLD registered area	750 sqft	AED 15,000
Difference	70 sqft (9.3%)	AED 1,400/year

Always use DLD Unit Profile area from Dubai REST — not the sales brochure. Over a 10-year hold, the brochure-vs-registered gap compounds to AED 14,000+ on a single unit.

How to look up service charges: step-by-step

Method 1 — Dubai REST app (fastest)

Download Dubai REST from App Store or Google Play
Open Property Search or Building Search
Enter the building name or DLD property ID
Navigate to Service Charge Information
Note the filed AED/sqft rate and the filing year
Cross-check the registered unit area on the Unit Profile tab

Full REST walkthrough: Dubai REST App Property Due Diligence.

Method 2 — Mollak portal (deepest data)

Visit mollak.dubailand.gov.ae
Search by building name or Mollak property group ID
Access the Service Charge Budget section
Review the current year’s filed rate and historical rates (if available)
Check reserve fund balance and any special assessment notices
Review OA management company name and contact

Mollak provides more financial depth than REST — including reserve fund status, historical charge trends, and pending capital works. Use Mollak for serious due diligence; use REST for quick verification.

Method 3 — Broker request (mandatory minimum)

Before making an offer, ask your registered RERA broker to provide:

Mollak-verified AED/sqft rate for the specific building
DLD Unit Profile showing registered area
Confirmation whether district cooling is included or separate
Any outstanding special assessments or capital levy notices

If the broker cannot provide Mollak verification within 48 hours, treat the building’s service charge cost as unknown — and unknown costs are not costs you can model.

Service Charge Index ranges by community tier

The Index publishes building-specific rates, but community-tier averages help you sanity-check whether a quoted figure is plausible.

Mid-market yield communities

Community	Index range AED/sqft/year	700 sqft annual cost
JVC	13–20	AED 9,100–14,000
Dubai Sports City	12–18	AED 8,400–12,600
Discovery Gardens	11–16	AED 7,700–11,200
International City	8–13	AED 5,600–9,100
Town Square	12–15	AED 8,400–10,500
IMPZ / Production City	14–18	AED 9,800–12,600

Core investor zones

Community	Index range AED/sqft/year	800 sqft annual cost
Business Bay	18–24	AED 14,400–19,200
JLT	14–22	AED 11,200–17,600
Dubai Marina	20–28	AED 16,000–22,400
Silicon Oasis	12–16	AED 9,600–12,800
Al Barsha / Tecom	13–18	AED 10,400–14,400

Premium and waterfront

Community	Index range AED/sqft/year	900 sqft annual cost
Downtown Dubai	22–32	AED 19,800–28,800
Downtown branded (Address, etc.)	30–45	AED 27,000–40,500
Palm Jumeirah apartments	28–40	AED 25,200–36,000
Palm Jumeirah villas	30–50	AED 27,000–45,000+
DIFC	25–38	AED 22,500–34,200
Dubai Hills villas	18–25	AED 16,200–22,500

Individual buildings within each community vary 30–40% from the community average based on age, management quality, and facilities level. The Index gives you the building-specific figure — community averages are for plausibility checks only.

Full area breakdown: Service Charges in Dubai by Area.

Developer estimates vs Index reality: the systematic gap

The most expensive mistake in Dubai property analysis is modelling yield on a developer’s SPA service charge estimate instead of Mollak Index data.

Why estimates fail:

Factor	Developer estimate assumption	Operational reality
Building age	New — minimal maintenance	Year 3–5: lifts, facade, waterproofing cycles begin
Insurance	Bulk estimate at launch	Actual premium based on claims history
Security	Basic provision	24/7 staffing costs escalate with labour inflation
Reserve fund	Minimum 10% compliance	Depleted funds trigger special assessments
District cooling	Often excluded or underestimated	Empower/Tabreed bills add AED 5,000–15,000/year
Management fee	Developer-appointed interim OA	Independent OA management costs more

Documented gap pattern across Dubai:

Stage	Developer SPA estimate	Index-filed actual
At launch (off-plan)	AED 10–12/sqft	Not yet filed
Year 1 post-handover	AED 10–12/sqft (still quoted)	AED 14–18/sqft
Year 3 stabilised	No longer quoted	AED 16–22/sqft
Year 5+ (aging building)	—	AED 18–28/sqft

Impact on a 1,000 sqft unit:

Basis	Annual charge	Net yield impact (on AED 90K rent, 7% gross)
Developer estimate (AED 11/sqft)	AED 11,000	5.8% net
Year 3 Index actual (AED 18/sqft)	AED 18,000	4.8% net
Conservative +20% (AED 22/sqft)	AED 22,000	4.1% net

The 1.7 percentage point gap between developer-estimate modelling and Index-reality modelling can flip a viable investment into a marginal one. This is why the Service Charge Index exists — and why you must use it.

Off-plan workaround: find the nearest comparable completed building on Mollak (same community, similar age, spec, and facilities). Use that building’s Index rate as your base assumption. Add 10–15% contingency for the new building.

District cooling: the charge Index does not always show

Many Dubai buildings bill district cooling (chilled water for air conditioning) separately from the service charge budget. The Index rate may or may not include cooling — and the difference is material.

Cooling arrangement	Who bills	Typical annual cost (800 sqft)
Included in service charge	OA (via Mollak budget)	Already in AED/sqft rate
Separate — Empower/Tabreed	Cooling provider directly	AED 6,000–14,000/year
Individual AC units (rare)	Owner (DEWA electricity)	Variable — higher DEWA bills
Chiller-free building	Developer promotional term	Verify end date — often expires

Buildings commonly with separate cooling charges:

Most Downtown Dubai towers (Empower network)
Business Bay premium towers
DIFC and Gate Village
Parts of Dubai Marina and JBR
Palm Jumeirah (mixed — verify per building)

How to verify: ask the broker or OA management company directly: “Is district cooling included in the Mollak-filed service charge, or billed separately?” If separate, request the last 12 months of cooling invoices for a comparable unit in the same building.

At handover, cooling connection is part of the Dubai Property Handover Checklist — budget AED 2,000–5,000 for connection deposits.

How service charges flow through to net yield

Service charges sit at the centre of the net yield equation. Every other cost — management, vacancy, maintenance — scales with rent. Service charges scale with building infrastructure regardless of what rent you achieve.

Full net yield stack for a JVC studio at AED 550,000:

Cost item	Annual AED	% of gross rent
Gross rent	AED 52,000	100%
Service charges (AED 16/sqft × 450 sqft)	AED 7,200	13.8%
Property management (6%)	AED 3,120	6.0%
Vacancy allowance (7%)	AED 3,640	7.0%
Ejari + admin	AED 400	0.8%
Maintenance provision	AED 1,500	2.9%
Total owner costs	AED 15,860	30.5%
Net income	AED 36,140	—
Net yield	6.57%	—

Same stack for Downtown 1-bed at AED 2,500,000:

Cost item	Annual AED	% of gross rent
Gross rent	AED 140,000	100%
Service charges (AED 27/sqft × 1,000 sqft)	AED 27,000	19.3%
District cooling (separate)	AED 9,000	6.4%
Property management (6%)	AED 8,400	6.0%
Vacancy allowance (7%)	AED 9,800	7.0%
Ejari + admin	AED 400	0.3%
Maintenance provision	AED 2,500	1.8%
Total owner costs	AED 57,100	40.8%
Net income	AED 82,900	—
Net yield	3.32%	—

The Downtown unit earns more absolute dirhams but delivers roughly half the net yield percentage of the JVC studio. Service charges and cooling are the primary drivers — not purchase price alone.

Calculator tool: Net Yield Calculator UAE Property. Full methodology: How to Calculate Rental Yield Dubai.

Special assessments: the charge Index does not predict

The Service Charge Index shows the annual operating rate. It does not always surface special assessments — one-off levies for major capital works outside the annual budget.

Common triggers for special assessments:

Lift replacement (AED 200,000–500,000 per building — apportioned across units)
Facade recladding (especially buildings from 2005–2012 construction era)
Underground parking waterproofing failure
Fire safety system upgrades mandated by Civil Defence
Pool and gym refurbishment after 10–15 years of operation

How to check before buying:

On Mollak, review the building’s reserve fund balance — depleted funds signal future special assessments
Ask the OA management company about pending capital works
Check building age — towers built 2005–2012 in Marina, JLT, and Discovery Gardens have the highest special assessment frequency
Request the last two years of OA general assembly minutes (available via Mollak for registered owners; ask seller or broker)

A special assessment of AED 50,000 on a studio you bought for AED 550,000 is a 9% unplanned capital call. Factor reserve fund health into due diligence the same way you factor service charge rate.

Service charges at handover: what new owners pay

When you take possession of an off-plan unit, service charges begin immediately — even before you find a tenant.

Handover service charge costs:

Item	Typical amount	When due
Service charge deposit (3–12 months)	AED 3,000–25,000	At handover
DEWA connection deposit	AED 2,000	At handover
District cooling connection deposit	AED 1,000–3,000	At handover
First quarter service charge invoice	Per Mollak rate × area	Within 30 days of handover
OA registration fee	AED 500–1,000	At handover

The developer may quote a promotional service charge rate at handover that differs from the stabilised Index rate filed 12 months later. Budget for the Mollak comparable rate, not the handover promotional figure.

Handover sequence: Dubai Property Handover Checklist.

Service charges and the Golden Visa calculation

Buyers purchasing for Golden Visa qualification (AED 2 million threshold) often focus on purchase price and ignore the cumulative service charge liability over a 10-year hold.

Scenario	Property	Annual service charge	10-year cumulative
A	Downtown 1-bed, AED 2.0M, 950 sqft, AED 28/sqft	AED 26,600	AED 266,000
B	Business Bay 1-bed, AED 2.0M, 1,050 sqft, AED 20/sqft	AED 21,000	AED 210,000
C	JVC 2-bed, AED 2.0M, 1,200 sqft, AED 15/sqft	AED 18,000	AED 180,000

Scenario C saves AED 86,000 over 10 years versus Scenario A — while likely delivering higher net yield. The Golden Visa threshold is met by all three; the ownership cost is not equal.

Golden Visa guide: UAE Golden Visa Property 2026.

Red flags when reviewing Index data

Broker quotes SPA estimate, not Mollak rate: insist on Index verification or walk away
Building not yet on Mollak: no filed rate means no data — use comparable building rate plus 15% contingency
Rate filed more than 18 months ago: request confirmation the rate has not changed at next OA cycle
Marketing area used in calculation: always use DLD registered area from Unit Profile
Cooling listed as “included” without written confirmation: get OA management company confirmation in writing
Reserve fund balance at zero on Mollak: special assessment risk is elevated
Service charge decreasing year-on-year: unusual — verify whether facilities are being cut or accounting adjusted
Gross yield quoted without charge deduction: the agent is showing marketing yield, not investor yield

Pre-purchase checklist: Service Charge Index due diligence

Who needs the Index most

Yield-first investors — service charges are the difference between a 6% net yield and a 4% net yield on the same gross rent. Index verification is non-negotiable.

Off-plan buyers — no Index data exists for unbuilt buildings. Comparable building lookup is your only reliable method.

Remote buyers purchasing via POA — you cannot physically inspect the building. Mollak and REST are your eyes.

Golden Visa buyers — cumulative service charges over a 10-year hold period materially affect total cost of ownership.

Portfolio investors scaling across multiple buildings — charge variance between buildings in the same community can exceed 40%. Building-specific Index lookup prevents portfolio-level yield miscalculation.

Service Charge Index vs other UAE markets

The Mollak/Index system is Dubai-specific. Other UAE emirates handle service charges differently:

Emirate	System	Transparency
Dubai	Mollak + Service Charge Index + REST	High — public filings
Abu Dhabi	Strata law (2019) + DMT oversight	Moderate — less centralised portal
Ras Al Khaimah	Developer/OA managed	Lower — verify per building via RAK Municipality
Sharjah	Developer-managed	Lower — limited public data

Cross-market investors cannot assume Dubai Index data applies to Abu Dhabi or RAK holdings. Each emirate requires separate charge verification.

RAK context: Ras Al Khaimah Property Investment Guide.

The bottom line for investors

The DLD Service Charge Index is not bureaucratic paperwork. It is the difference between knowing your actual return and discovering it after purchase. Three rules:

Never model yield on developer estimates — use Mollak Index data or comparable building rates
Always use DLD registered area — not marketing brochure sqft
Always model net yield — service charges, cooling, management, vacancy, and maintenance

Gross yield is what agents sell. Net yield is what investors earn. The Service Charge Index is how you get from one to the other.

Index data reflects RERA Mollak filings through Q1 2026. Individual building rates change annually following Owners Association budget approval. Always verify current rates via Mollak or Dubai REST before purchase. This guide is for information purposes only and does not constitute financial or investment advice.