Short answer
- In Dubai, a management entity may not collect service charges without RERA's approval, and RERA approves a budget only after a recognized audit firm has (Law No. 6 of 2019, Article 27).
- The DLD says owners do not have to pay common service charges that RERA has not approved.
- Approved rates are public: the DLD's Service Charge Index shows them by project, use and year, in AED per square foot.
- Each owner's share follows unit area, and the developer pays for unsold units (Article 25(a)).
- Once charges are approved, an owner "may not refrain from paying" them, and unpaid charges create a lien that can end in a court-ordered auction.
A service charge higher than expected in Dubai is one of the most common shocks after handover. The brochure figure was an estimate; the bill you receive should match a budget RERA has approved, and you can check that yourself.
This guide covers why the numbers differ, how to verify the bill and what you can challenge, under Dubai's Jointly Owned Property law.
Some terms first. RERA (Real Estate Regulatory Agency) regulates the sector on behalf of the Dubai Land Department (DLD). Mollak is the DLD platform where building finances and service charges are recorded. The management entity (often called the management company) runs the building's common areas.
Service charge higher than expected in Dubai: why the bill changes
Service charges are set by an approved annual budget for the whole building, so they can differ from any figure quoted at sale. The marketing figure is not the legal basis for what you owe; the RERA-approved budget is.
- Sales figures are estimates made before the building runs; actual budgets follow real costs
- Budgets are approved year by year, so the rate can move each year
- Your share follows your unit's area, so larger units pay more
- Arrears or other items can sit on the same invoice as the annual charge
- An amount RERA has not approved should not be collected at all
…our service charges seem to increase almost every year.
Under Article 25(a) of Law No. 6 of 2019, each owner's share follows unit area, and the developer pays for units it has not sold.
What makes Dubai service charges too high, legally speaking?
Legally, a charge is out of line when RERA has not approved it, not simply when it feels high.
Budget prepared
The management entity prepares the building's annual budget.Audit firm approves
Under Article 27(b), RERA cannot approve the budget unless a RERA-recognized audit firm has approved it.RERA approves
Under Article 27(a), the management entity may not collect amounts "without first obtaining the relevant approval of RERA".Rate published
Approved rates appear in the Service Charge Index on the DLD website (Mollak) and in the Dubai REST app.Owners invoiced
Each owner pays a share based on unit area.
How do you check a service charge increase in Dubai?
Compare your invoice with the RERA-approved rate for your building and year in the Service Charge Index. The index gives approved fees in AED per square foot, searchable by project, use and year, with immediate results.
Verify your service charge bill
Example: a 1,000 sq ft apartment in a building with an approved rate of AED 15 per sq ft would expect an annual charge of AED 15,000. If the invoice shows AED 20,000 for the same year with no other items listed, that gap is the question to put in writing.
Our step-by-step guide to the RERA Service Charge Index shows the lookup screen by screen.
- Index launched
- 15 Oct 2014
- By RERA
- Source: DLD
- Unit of measure
- AED per sq ft
- Source: DLD
- Where to look
- DLD website, Dubai REST
- Mollak and the app
- Source: DLD
- Owners committee
- Up to 9 members
- Once 10% of units are registered
- Source: Law 6/2019, Art. 22
Unexpected service charges after handover: what can you challenge?
You can question whether a charge was approved, whether your area share is right and whether the developer is paying for unsold units. You generally cannot refuse a charge RERA has approved simply because it is higher than you were told.
| Situation | What the law says | Practical step |
|---|---|---|
| Charge not in the Service Charge Index | Not payable if RERA has not approved it (DLD FAQ) | Ask for the RERA approval reference in writing |
| Rate matches the index but is above the brochure | Approved charges must be paid (Art. 28) | Pay; raise concerns through the owners committee |
| Your area share looks wrong | Share follows unit area (Art. 25(a)) | Send your title deed area and ask for a recalculation |
| Unsold units seem excluded | Developer pays for unsold units (Art. 25(a)) | Ask how unsold units are billed |
Can the developer increase service charges a few years after the handover?
A committee gives owners a collective voice on the budget that a single owner lacks. Article 22 of Law No. 6 of 2019 has RERA appoint one, with up to nine members, as soon as owners hold registered title to at least 10% of the units.
What happens if you stop paying?
Refusing approved charges carries real consequences. Article 32 gives the management entity a lien on the unit, and the unit cannot be sold or transferred until charges are paid.
After a RERA-approved notice and 30 days, the execution judge can enforce the claim and may order a public auction of the unit.
What should you check before handover to avoid surprises?
The best time to look at service charges is before you accept the keys. If the building is already in the Service Charge Index, you can see recent approved rates.
Our handover checklist puts service charges next to snagging and title deed checks. If a disagreement with the developer escalates, the guide to off-plan disputes explains the routes. You can also check a project's registry facts before any meeting with the management company.
Buying from the UK, US, Canada or Australia?
- UK: service charge questions for British owners
- US: a service-charge playbook for US owners
- Canada: service charge checklist for Canadian owners
- Australia: pay-or-challenge decision tree for Australian owners
Why are Dubai service charges too high compared with the brochure?
Do I have to pay a service charge increase in Dubai?
Who pays service charges on unsold units in Dubai?
What happens if I don't pay my Dubai service charges?
Can owners influence service charges in Dubai?
Related guides
Sources
- Law No. 6 of 2019 Concerning Ownership of Jointly Owned Real Property in Dubai (Dubai Legislation Portal)
- Service Charge Index (Dubai Land Department)
- About Mollak (Dubai Land Department)
- Frequently asked questions (Dubai Land Department)
- Service charges: a tug of war between management companies and property owners (CMS, 2021)
This guide is general information, not legal advice. Laws and procedures change; check the official source before acting. Published 12 October 2026, last updated 12 October 2026.