How Dubai villa owners can legally challenge service charge hikes
Living in a Dubai villa community comes with regular service charges for maintenance and facilities. However, many property owners face unexpected increases in these fees and wonder about their legal rights to contest such hikes.
What are service charges in Dubai properties?
Service charges are annual fees collected from property owners to cover costs associated with management, operation, maintenance, and repair of jointly owned real property. These charges typically fund:
- Common area maintenance
- Utility services
- Drainage systems
- Security services
- Other shared facilities
Can developers increase service charges after handover?
For properties falling under “major projects” in Dubai, management and maintenance responsibilities lie with the master developer as per Article 18(a)(1) of Law No. 6 of 2019 Concerning Ownership of Jointly Owned Real Properties.
The master developer may outsource maintenance work to a management company, but this must be done through a written agreement pre-approved by RERA (Real Estate Regulatory Authority).
Legal framework governing service charges
The legal foundation for service charges stems from Law No. 6 of 2019, which defines:
- Building Management Regulation: A document prepared according to Dubai Land Department (DLD) by-laws, registered in the Jointly Owned Real Property Register
- Owners Committee: A committee formed from property owners
- Management Company: An entity recognised by RERA specialising in managing common facilities
- Utility Services: Including water, gas, electricity, air conditioning, telecommunications, waste removal, and other services for common areas
How to challenge increased service charges
If you believe service charge increases are unreasonable, follow these steps:
- Initial discussion: First, speak directly with your developer or management company about the increase
- Check documentation: Review your purchase agreement and community rules regarding service charge calculations
- Seek mediation: If direct discussions fail to resolve the issue
- Approach the Rental Dispute Centre (RDC): As per Article 42 of the Dubai Jointly Owned Property law, the RDC can resolve disputes when parties cannot reach a mutual agreement
RERA’s role in service charge disputes
RERA holds significant authority in these matters. According to Article 38 of the Dubai Jointly Owned Property Law, RERA can replace a building’s management company if necessary.
Furthermore, while Article 25 mandates property owners to pay service charges, these must be fair and justified according to the regulations.
Practical steps for villa owners
When contesting service charge increases:
- Gather evidence of the charges before and after the increase
- Compare service charges with similar properties in your area
- Form or join an Owners Committee to present collective concerns
- Request detailed breakdowns of how service charges are allocated
- Document all communications with the developer/management company
Key takeaway
Dubai villa owners have legal pathways to challenge unreasonable service charge increases. While owners must pay legitimate service charges under law, they can contest unjustified hikes through discussion with developers and, if necessary, by approaching the Rental Dispute Centre for resolution.
This article provides general information only and should not be considered legal advice. For specific concerns, consult a qualified legal professional.
The information in this article is based on Law No. 6 of 2019 Concerning Ownership of Jointly Owned Real Properties in the Emirate of Dubai.
JobXDubai 
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