Understanding Service Charges in Off-Plan Properties

Service Charges

• How are the service charges calculated by the developers?

  Service charges are calculated based on the total area of the property, including shared spaces, and the annual maintenance budget set by the developer or community management. Charges cover services like cleaning, security, landscaping, and maintenance.

• What factors influence the amount of service charges for off-plan properties?

  Factors include:

  • Size of the unit (sq ft or sq m)
  • Type of property (apartment, villa, townhouse)
  • Facilities available (pool, gym, parks)
  • Location and quality of services

• Are service charges fixed or can they change over time?

  Service charges are subject to annual review and can increase based on inflation, additional services, or increased maintenance costs. Developers must provide transparency through annual budgets and statements.

• Who is responsible for setting and approving service charge budgets in off-plan developments?

  Typically, the developer or homeowners’ association prepares the budget, which is then approved by a management committee or residents to ensure fair and accurate service charge allocation.

• Where can buyers find official information about service charges for a specific off-plan project?

  Buyers can consult the Dubai Land Department’s Service Charges Calculator and the developer’s official documentation. For more info, visit the  Dubai Land Department website.