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Service charge higher than expected in Dubai: a decision guide for Australia investors

Service charge higher than expected in Dubai? Australia investors can test RERA approval, the index rate and the owners committee route before paying.

By HomeProof Research TeamUpdated 6 min readDubai law · every fact with a source

Short answer

  • For Australia investors with a service charge higher than expected in Dubai, the first test is Article 27(a) of Law No. 6 of 2019: a management entity may not collect service charges without RERA approval.
  • The Dubai Land Department (DLD) says owners do not have to pay common service charges that RERA has not approved.
  • RERA's Service Charge Index lists approved rates in AED per square foot by project, use and year, on the DLD website (Mollak) and in the Dubai REST app.
  • Once RERA approves a charge, Article 28 says an owner "may not refrain from paying" it, and Article 32 gives the management entity a lien over the unit.

Before writing an angry email from Australia, sort the bill into one of four situations, and look up the project record so you start from facts. Each situation has a different fix.

Start

Bill higher than expected

Decision

RERA-approved budget?

  • No or unclear

    Outcome

    Ask for the approval in writing

  • Yes

    Decision

    Rate matches the index?

    • No

      Outcome

      Query the arithmetic

    • Yes

      Decision

      What is the gap against?

      • Last year's rate

        Outcome

        Owners committee and RERA

      • A brochure estimate

        Outcome

        Rebuild your own numbers

Service charge higher than expected in Dubai: which branch are Australia investors on?

Your branch depends on two facts you can check yourself: whether RERA approved the budget behind the bill, and whether the invoice rate matches the published index.

Service charges are the yearly fees owners pay for the shared parts of a jointly owned building, governed in Dubai by Law No. 6 of 2019. Mollak is the DLD system, run through RERA, that monitors service-charge payments.

Collection without RERA approval
Not allowed
Art. 27(a), Law No. 6 of 2019
Budget sign-off
Audit firm first
A RERA-recognised auditor approves before RERA can (Art. 27(b))
Your share
By unit area
Developer pays for unsold units (Art. 25(a))
Notice before enforcement
30 days
After a RERA-approved notice (Art. 32)

Branch 1: no RERA approval is visible

If nothing on the invoice points to an approved budget, ask for that approval in writing before paying. Article 27(a) and the DLD FAQ together mean an unapproved common charge is not one you are obliged to settle.

Branch 2: the rate does not match the index

Find your building in the Service Charge Index, note the approved AED-per-square-foot rate for the correct year and use, then multiply it by your unit's area. Article 25(a) bases each owner's share on area, so the sum should reconcile.

Example: a hypothetical 1,000 sq ft apartment at an approved AED 15 per sq ft owes AED 15,000 for the year. An invoice for AED 18,000 leaves an AED 3,000 gap to raise with the management company. Our walkthrough of the RERA Service Charge Index shows the lookup screen by screen.

Branch 3: a service charge increase in Dubai that RERA approved

An approved increase is collectable. Article 28 bars owners from withholding approved charges, and Article 32 lets the management entity enforce through the execution judge after a RERA-approved notice and 30 days, which can end in a public auction of the unit.

…our service charges seem to increase almost every year.
a Dubai apartment owner (Emma L) writing to The National · The National, Sept 2026

The forum for questioning a rising budget is the owners committee. Under Article 22, RERA appoints up to nine members once at least 10% of units are registered to owners. Ask whether your building has one.

Branch 4: the gap is against a brochure estimate

Collection is tied to the RERA-approved budget, not to marketing figures. If the gap is between a pre-purchase estimate and an approved rate, there is usually no invoice error, so rerun your rental numbers with the approved rate. The handover checklist for Australian buyers covers checking the index before you take the keys.

Dubai service charges too high? What buyers in Australia can do from home

The Australian side of a service-charge problem is about timing, records and tax. No Australian body rules on a Dubai building budget; the decisions sit with RERA and the management entity.

If you are suddenly asked to pay into a "new" account, confirm it through a contact you already hold and report suspected scams to Scamwatch. For disputes that go further, see where a Dubai off-plan dispute goes from Australia, the global service charge guide and the Australia hub for Dubai off-plan problems.

FAQ

Can Australian buyers challenge a service charge increase in Dubai?

A service charge increase in Dubai can be questioned if RERA has not approved it, or if the invoice does not match the approved rate multiplied by your unit's area. Australian buyers raise these points in writing with the management company and, for budget concerns, through the owners committee that RERA appoints under Article 22 of Law No. 6 of 2019. An approved increase itself remains payable.

Do I have to pay a Dubai service charge that RERA has not approved?

A Dubai service charge needs RERA approval before it can be collected, under Article 27(a) of Law No. 6 of 2019. The Dubai Land Department's FAQ states that owners are not obliged to pay common service charges RERA has not approved. Ask the management company in writing for the approval before paying, and keep that correspondence with your records.

Where can I see the approved service charge for my Dubai building?

The approved service charge for a Dubai building appears in RERA's Service Charge Index. The index is offered on the DLD website through Mollak and in the Dubai REST app, and it lets anyone search by project, use and year. Rates are shown in AED per square foot, so multiply by your unit's area to compare with the invoice.

What happens if an owner in Australia stops paying approved Dubai service charges?

An owner in Australia who stops paying approved Dubai service charges faces the same rules as a local owner. Article 32 of Law No. 6 of 2019 gives the management entity a lien, blocks any sale until charges are paid and, after a RERA-approved notice and 30 days, allows enforcement by the execution judge, including a possible public auction.

Sources

  1. Law No. 6 of 2019 Concerning Ownership of Jointly Owned Real Property in Dubai (Dubai Legislation Portal)
  2. Dubai Land Department: frequently asked questions
  3. Dubai Land Department: Service Charge Index overview
  4. Mollak: about the system (Dubai Land Department)
  5. Australian Consulate-General Dubai: List of Legal Practitioners in Dubai & the Northern Emirates (July 2026)
  6. ATO: foreign and worldwide income for Australian residents
HomeProof Research TeamFacts from Dubai law and official registries. HomeProof sells no property and takes no commission. About HomeProof

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.

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