JobXDubai

Dubai’s property owners are facing increased costs as service charges across the emirate are projected to rise by 5-10% this year, according to leading real estate experts. This increase follows a similar trend from 2024 and stems from several factors affecting property maintenance and operations.

Why Service Charges Are Increasing

Property management companies attribute the rise to several key factors:

• Higher operational expenses for common area maintenance
• Increased district cooling charges
• Rising utility costs from DEWA
• Inflation affecting material and labour costs
• Additional maintenance requirements for ageing buildings

“We’re projecting a five to ten per cent rise in service charges across Dubai in 2025, depending on the age and condition of each development,” explains Hadi Hamra, managing partner at Driven Properties.

Older properties face particularly significant increases as they require more frequent infrastructure upgrades and replacement of outdated equipment.

Highest and Lowest Service Charge Areas

According to data from Driven Properties, service charges vary considerably across Dubai’s communities:

Highest Service Charges:

• Bulgari Resorts and Residence (Jumeirah Bay Island): Dh53.7 per sq ft
• Dubai Marina
• Business Bay
• Downtown
• Bluewaters

Lowest Service Charges:

• Jumeirah Village Circle
• Marjan
• Jumeirah Lake Towers
• Dubai South

Impact on Landlords and Tenants

The rising service charges are creating ripple effects throughout Dubai’s property market.

Anmoll Shroff, founder and chairman of Elton Real Estate Development, notes that “property owners in Dubai often raise rents to offset higher service charges, but the ability to pass on these costs depends on market demand and the Real Estate Regulatory Authority‘s (RERA) rental index regulations.”

In competitive areas with high vacancy rates, landlords may absorb these increased costs to attract and retain tenants. However, in high-demand locations, property owners may have more flexibility to increase rents.

What Are Service Charges?

For new property investors or residents, service charges are recurring fees paid by homeowners for:

• Cleaning and maintenance of common areas
• Security services
• Landscaping
• Waste disposal
• Repairs and general upkeep
• Management and administration
• Utilities for common areas

These charges are essential for maintaining property values and living standards within communities.

How Service Charges Affect Buying Decisions

While service charges do factor into property buying decisions, experts suggest they’re rarely the determining factor.

Hamra observes that “location, potential return on investment, and a community’s overall lifestyle offerings tend to rank higher on most buyers’ checklists. Of course, steep or rapidly rising service fees can be a deterrent, but in most cases, they’re just one part of the overall equation.”

Looking Ahead

As Dubai’s property market continues to mature, owners and investors should anticipate ongoing adjustments to service charges, particularly as buildings age and require additional maintenance.

Staying informed about these trends can help property owners and investors make more accurate financial projections and better understand the total cost of ownership beyond the initial purchase price.

Additional Reading Material

• Dubai Property Prices Surge 20%: 2025 Real Estate Market Analysis & Forecast
• Dubai Property Guide: Expert Tips to Avoid Common Real Estate Mistakes 2025
• Dubai Property Market 2025: Villa Prices Set to Stabilise | Expert Analysis
• Dubai Property Prices Set to Surge: SZR and Al Jaddaf Go Freehold in 2025