What Should I Know About Service Charges in Dubai Off-Plan Properties?

Service Charges & Ownership Costs

• Can I negotiate the service charges with the developer for my off-plan property?

  Service charges are regulated in Dubai and approved by RERA based on the building’s operational costs. While not commonly negotiable on an individual basis, some developers may offer temporary discounts or waive charges during promotions or handover periods.  

• Who sets the service charges for off-plan properties after completion?

  After handover, the Owners’ Association (OA) usually takes over from the developer and works with an RERA-approved management company. Service charges are calculated annually and submitted to RERA for approval before collection from owners.

• Are service charges different across Dubai communities for off-plan projects?

  Yes. Service charges vary significantly depending on location, developer, and amenities. For example:

  • Luxury developments in Downtown or Palm Jumeirah typically have higher fees.
  • Mid-market areas like JVC or Dubailand offer more affordable service charges.

• How can I estimate service charges before buying an off-plan property?

  Buyers can request a service charge estimate from the developer based on preliminary budgets. Additionally, platforms like Dubai REST App and DLD’s Service Charge Index provide insights into average community rates.

• Can service charges increase suddenly after handover of an off-plan unit?

  Service charges can increase if operational costs rise or more amenities are introduced. However, any change must be approved by RERA and communicated to the Owners’ Association before implementation. Transparency is enforced to protect investors.