Dubai Service Charge Index Explained: Mollak, REST, and
How the DLD Service Charge Index and RERA Mollak system work, step-by-step lookup via Dubai REST, the sqft formula, why SPA estimates lie
By Invest Gulf Editorial · Updated July 27, 2026 · 13 min read
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 to 25% of gross rental income on mid-market stock and 25 to 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.
Area-by-area charge ranges: Service Charges in Dubai by Area. Net yield methodology: Gross vs Net Yield Dubai.
What are Mollak, the Service Charge Index, and Dubai REST?
Mollak, the Service Charge Index, and Dubai REST typically show the same filed AED/sqft rate for a building in a given year, and Invest Gulf treats any mismatch as a stop for foreign buyers because mid-market charges of AED 12 to 22/sqft and waterfront bands of AED 28 to 50/sqft only become bankable when the three sources agree.
- Mollak: RERA OA filing and budget platform
- Service Charge Index: DLD database of filed AED/sqft rates
- Dubai REST: mobile lookup of the same filed figure
How are Dubai service charges set each year?
Annual service charges typically start with an OA management budget, owner vote at general assembly, then RERA filing on Mollak that publishes the AED/sqft Index rate, and Invest Gulf models 5 to 10% escalation for foreign buyers because buildings under 5 years old often rise as maintenance cycles begin.
| Cost category | Typical budget share |
|---|---|
| Building maintenance and repairs | 25 to 35% |
| Security (guards, CCTV, access control) | 15 to 20% |
| Cleaning and waste management | 10 to 15% |
| Building structure insurance | 5 to 10% |
| Lifts and MEP systems | 8 to 12% |
| Landscaping and common areas | 5 to 10% |
| District cooling (if building-managed) | 10 to 20% |
| Reserve fund (RERA-mandated 10%) | 10% |
| OA management fee | 5 to 10% |
- Management company prepares the budget
- Owners approve at general assembly
- Filing publishes the Index rate on Mollak
- Owners receive invoices: registered sqft × AED/sqft
Late payment can trigger an OA lien at DLD, blocking sale or mortgage.
How do you calculate annual service charges?
Annual service charge typically equals DLD registered sqft times the Mollak-filed AED/sqft rate, and Invest Gulf uses Unit Profile area not brochure sqft because foreign buyers who model 820 sqft marketing figures overstate cost by 5 to 15% versus a 750 sqft registered folio on the project.
| 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% |
| 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 | AED 145,000 |
| Service charge as % of gross rent | 22.3% |
| 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 |
Insider tip: Screenshot the Mollak-filed AED/sqft rate and the DLD Unit Profile area into the same note before you offer. Brokers who cannot produce both inside 48 hours leave your net yield model incomplete.
Dubai service charge math typically means registered area times Mollak rate, not brochure sqft times SPA estimate. A 780 sqft Business Bay unit at AED 21/sqft costs AED 16,380 per year, or about 17.2% of AED 95,000 gross rent; a 950 sqft Palm apartment at AED 34/sqft costs AED 32,300, or 22.3% of AED 145,000 rent. Invest Gulf underwriting for foreign buyers replaces launch quotes of AED 10 to 12/sqft with year-three Index bands of AED 16 to 22/sqft and adds 10 to 15% contingency on off-plan comps. Across a 10-year hold, a 70 sqft brochure-versus-registered gap at AED 20/sqft compounds past AED 14,000. Always verify cooling inclusion separately when Empower or Tabreed sits outside the OA budget.
How do you look up service charges step by step?
Service charge lookup typically uses Dubai REST for a quick filed AED/sqft rate, Mollak for budgets and reserve funds, and a RERA broker request as the mandatory minimum, and Invest Gulf pauses offers when foreign buyers cannot get Mollak verification within 48 hours on the project.
Method 1: Dubai REST (fast check)
- Open Dubai REST → Property Search
- Select the building
- Read the filed service charge rate for the current year (often AED 12 to 50/sqft by tier)
Method 2: Mollak portal (deepest data)
- Visit mollak.dubailand.gov.ae
- Search by building name or Mollak property group ID
- Open Service Charge Budget
- Review filed rate, history, reserve fund, special assessments
- Note OA management company contacts
Method 3: Broker request
- Mollak-verified AED/sqft for the building
- DLD Unit Profile registered area
- Cooling included vs separate (AED 2,000 to 9,000+/year if separate)
- Outstanding special assessments
If the broker cannot produce Mollak verification within 48 hours, treat annual cost as unknown and do not model net yield.
What service charge ranges apply by community tier?
Community Index ranges typically run AED 12 to 16 in value zones and AED 28 to 50 on premium waterfront, and Invest Gulf still demands building-specific Mollak figures because foreign buyers who underwrite community averages miss 30 to 40% tower-to-tower variance in this market.
| Community | Index range AED/sqft/year | 800 sqft annual cost |
|---|---|---|
| Business Bay | 18 to 24 | AED 14,400 to 19,200 |
| JLT | 14 to 22 | AED 11,200 to 17,600 |
| Dubai Marina | 20 to 28 | AED 16,000 to 22,400 |
| Silicon Oasis | 12 to 16 | AED 9,600 to 12,800 |
| Al Barsha / Tecom | 13 to 18 | AED 10,400 to 14,400 |
| Community | Index range AED/sqft/year | 900 sqft annual cost |
|---|---|---|
| Downtown Dubai | 22 to 32 | AED 19,800 to 28,800 |
| Downtown branded (Address, etc.) | 30 to 45 | AED 27,000 to 40,500 |
| Palm Jumeirah apartments | 28 to 40 | AED 25,200 to 36,000 |
| Palm Jumeirah villas | 30 to 50 | AED 27,000 to 45,000+ |
| DIFC | 25 to 38 | AED 22,500 to 34,200 |
| Dubai Hills villas | 18 to 25 | AED 16,200 to 22,500 |
Full area breakdown: Service Charges in Dubai by Area.
Why do developer estimates differ from Index filings?
Developer SPA estimates typically understate stabilised Index rates by quoting AED 10 to 12/sqft at launch while year-three filings land near AED 16 to 22/sqft, and Invest Gulf adds 10 to 15% contingency on comparable Mollak buildings because foreign buyers who model brochure figures inflate net yield by 1 to 2 percentage points.
| Stage | Developer SPA estimate | Index-filed actual |
|---|---|---|
| At launch (off-plan) | AED 10 to 12/sqft | Not yet filed |
| Year 1 post-handover | AED 10 to 12/sqft (still quoted) | AED 14 to 18/sqft |
| Year 3 stabilised | No longer quoted | AED 16 to 22/sqft |
| Year 5+ (aging building) | n/a | AED 18 to 28/sqft |
| 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 |
Is district cooling included in service charges?
District cooling typically sits outside Mollak service charges on many Downtown, Business Bay, DIFC, Marina, and Palm towers, and Invest Gulf requests 12 months of comparable cooling invoices because foreign buyers who assume inclusion understate annual cost by AED 2,000 to 9,000+ on the project.
Buildings commonly with separate cooling:
- Most Downtown Dubai towers (Empower)
- Business Bay premium towers
- DIFC and Gate Village
- Parts of Dubai Marina and JBR
- Palm Jumeirah (verify per building)
At handover, budget AED 2,000 to 5,000 for cooling connection deposits per the Dubai Property Handover Checklist.
How do service charges flow through to net yield?
Net yield typically subtracts service charges, cooling, management, vacancy, and maintenance from gross rent before dividing by price, and Invest Gulf shows Downtown stacks near 40% owner costs because foreign buyers who quote 7% gross often clear closer to 3.3% net after AED 27/sqft charges on the project.
| Cost item | Annual AED | % of gross rent |
|---|---|---|
| Gross rent | AED 140,000 | 100% |
| Service charges (AED 27 per sqft on 1000 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 | n/a |
| Net yield | 3.32% | n/a |
Calculator: Net Yield Calculator UAE Property.
What are special assessments and reserve funds?
Special assessments typically appear when reserve funds cannot cover capital works, and Invest Gulf checks Mollak reserve balances because a AED 50,000 call on a AED 550,000 studio is a 9% unplanned capital hit for foreign buyers in 2005 to 2012 Marina and JLT stock in this market.
- Review reserve fund balance on Mollak
- Ask OA about pending capital works
- Read last two years of general assembly minutes
- Factor building age into due diligence
What service charge costs appear at handover?
Handover service charge costs typically include 3 to 12 months deposit (AED 3,000 to 25,000), DEWA AED 2,000, cooling AED 1,000 to 3,000, first-quarter invoices, and OA fees of AED 500 to 1,000, and Invest Gulf budgets Mollak comparable rates not promotional handover quotes for foreign buyers.
| Item | Typical amount | When due |
|---|---|---|
| Service charge deposit (3 to 12 months) | AED 3,000 to 25,000 | At handover |
| DEWA connection deposit | AED 2,000 | At handover |
| District cooling connection deposit | AED 1,000 to 3,000 | At handover |
| First quarter service charge invoice | Per Mollak rate × area | Within 30 days |
| OA registration fee | AED 500 to 1,000 | At handover |
How do service charges affect Golden Visa cost of ownership?
Golden Visa cost of ownership typically diverges by AED 180,000 to 266,000 over 10 years across AED 2.0M qualifying units when service charges run AED 15 to 28/sqft, and Invest Gulf ranks foreign buyers on cumulative Index cost not purchase price alone in this market.
| 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 often delivering higher net yield. Guide: UAE Golden Visa Property 2026.
What service charge red flags should pause a purchase?
Service charge red flags typically include SPA estimates 20 to 50% below Mollak comps, depleted reserve funds, unpaid OA liens, and cooling ambiguity, and Invest Gulf stops foreign buyers when a broker cannot produce a filed AED/sqft rate inside 48 hours on the project.
- SPA quotes of AED 10 to 12/sqft with no completed comparable above AED 16/sqft
- Reserve fund near zero on a 10+ year tower
- Special assessment notices already circulating
- Broker refusal to open Mollak or REST
- Unknown cooling inclusion on waterfront stock
What checklist should you run before signing?
A pre-sign service charge checklist typically confirms Mollak rate, DLD registered area, cooling status, reserve health, and a 5 to 10% escalation model, and Invest Gulf requires all five before foreign buyers lock an SPA on yield-sensitive stock in this market.
- Mollak-filed AED/sqft screenshot dated this week
- DLD Unit Profile registered sqft
- Written answer: cooling included or separate
- Reserve fund / special assessment note
- Net yield model using Index reality, not SPA estimate
Who needs the Service Charge Index most?
The Index typically matters most for off-plan buyers without filings yet, remote POA purchasers, Golden Visa holders modelling 10-year cost, and portfolio investors facing 40%+ building variance, and Invest Gulf forces Mollak comps in each of those files for foreign buyers in this market.
- Off-plan: use completed comparable + 10 to 15% contingency
- Remote POA: Mollak and REST are your inspection
- Golden Visa: cumulative charges reshape total ownership cost
- Portfolios: building-specific lookup prevents yield miscalculation
How does Dubai compare to other UAE emirates on charges?
Dubai Mollak Index transparency typically exceeds other emirates where OA filings are harder to verify publicly, and Invest Gulf still underwrites RAK and Abu Dhabi with local management quotes because foreign buyers who copy Dubai AED/sqft bands misprice thinner disclosure markets in the area.
| Emirate | Public Index depth | Planning note for foreign buyers |
|---|---|---|
| Dubai | Mollak + REST filed AED/sqft | Use building-specific rates (AED 12 to 50/sqft bands) |
| Abu Dhabi | OA / management quotes | Request 12 months invoices; less Index-style lookup |
| Ras Al Khaimah | Developer / OA disclosure | Do not copy Dubai Marina AED 20 to 28/sqft into RAK models |
RAK context: Ras Al Khaimah Property Investment Guide. Add 5 to 10% escalation wherever filings are thin.
What is the bottom line for investors?
Investor bottom line typically means never modelling yield on developer estimates, always using DLD registered area, and always computing net yield after service charges and cooling, and Invest Gulf treats Mollak Index lookup as mandatory because foreign buyers who stop at gross yield misprice 15 to 35% of rent as invisible owner cost.
- Never model yield on developer estimates
- Always use DLD registered area
- Always model net yield with Index-backed charges
Index data reflects RERA Mollak filings through Q1 2026. Individual building rates change annually. 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.
Service charge Index due diligence typically ends with three artefacts in one folder: Mollak AED/sqft, DLD registered area, and a cooling inclusion answer. Mid-market bands of AED 12 to 22/sqft and premium waterfront bands of AED 28 to 50/sqft only become useful when multiplied by the correct folio size. Invest Gulf case models for foreign buyers show developer launch quotes of AED 10 to 12/sqft drifting to AED 16 to 22/sqft by year three, a gap that can cut about 1.7 net yield points on an AED 90,000 rent case. Golden Visa picks at AED 2.0M can still diverge by AED 86,000 over 10 years between AED 15/sqft JVC and AED 28/sqft Downtown. Screenshot filings before you negotiate.
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Frequently Asked Questions
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.
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 to 50% on new buildings.
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.
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.
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 to 10% annual increases over the past five years due to utility inflation, aging infrastructure maintenance, and facilities upgrades. Model a 5 to 10% annual escalation in long-term yield projections.
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 to 12/sqft often settle at AED 16 to 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 to 15% contingency.
Service charges are the single largest owner cost after mortgage interest, typically consuming 15 to 25% of gross rental income on mid-market properties and 25 to 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.
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.
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