A comprehensive guide to the annual cost of renting a house and apartment in Dubai

Key Factors in Determining Annual Service Charges for Apartments in Dubai

The cost of living in Dubai depends on the area you choose, as these costs in this city differ in luxury areas from ordinary areas.

In Dubai, the annual service charges for houses and apartments are calculated based on the cost per square foot, which typically ranges from 3 to 30 AED in different parts of the city. In some areas, these charges may even be higher. Several factors influence the annual service charges for apartments in Dubai, including:

• Water and electricity
• Home and contents insurance
• Property management
• Reserve fund
• Administrative costs
• Management of common areas
• Additional services (pest control, gardening, etc.)
• Maintenance (general cleaning, waste collection, elevator maintenance, and power and water systems management, etc.)

A Comprehensive Guide to Factors Influencing Apartment Service Charges in Dubai

After signing the contract and receiving the tenancy agreement, you are required to pay the full annual service charge for the apartment upfront to the property owner. If you wish to rent an apartment in the heart of Dubai, the cost will vary depending on the number of rooms and the size of the apartment.

In fact, there are various factors that affect the annual charge for houses and apartments in Dubai. These factors include geographical location, type of project, and the use of the property you are looking for; for example, people who choose areas like JVC to buy townhouses in Dubai will have to pay more for the annual charge.

A Brief Overview of Annual Service Charges for Houses and Apartments in Dubai

As previously mentioned, the annual service charges for houses in Dubai include costs related to services, maintenance, and the management of public areas and shared spaces within the building. These charges are typically covered by the property owner and are used to maintain and enhance the quality of life in the buildings. The table below provides a detailed overview of the annual service charges for apartments in one of Dubai's affordable areas:

Comparison of Annual Service Charges for Apartments in Dubai with Advanced Cities Worldwide

The most important and fundamental aspect of living in Dubai and other cities around the world is the cost of housing. This cost includes the purchase or rental of the property. The real estate market offers a wide range of options in terms of pricing, from simple and compact studios to luxurious villas.

The amount of annual service charges for an apartment also depends on your personal preferences and interests. In the table below, we will compare the annual service charges for houses in Dubai with those in other advanced cities worldwide, calculated per square foot:

Authorities Overseeing Annual House and Apartment Charges in Dubai

The Dubai Land and Estate Department (DLD), or more specifically, the Real Estate Regulatory Authority (RERA), oversees the annual house and apartment charge in Dubai. Thanks to the services provided by this department, the process of buying a property in the city has now become much easier. However, buyers and applicants should be fully aware of all the property service charges in Dubai, which are additional costs considered when buying a property.

The RERA complex was established in 2007 by the Ruler of Dubai (Sheikh Mohammed bin Rashid Al Maktoum), Vice President and Prime Minister of the UAE. The main responsibilities of this authority include:

• Regulating property advertising licenses;
• Regulating property advertisements in the media;
• Managing property developers’ joint accounts, safe accounts, and escrow accounts;
• Supervising owners’ associations that own various buildings across the emirate;
• Issuing licenses for real estate agencies, developers, brokers, and professionals in Dubai;
• Disseminating information and setting rules and regulations regarding the purchase or rental of real estate in the UAE;
• Monitoring and regulating rental contracts through the Ejari system and ensuring the legality and security of rental contracts;

How are the annual property charges calculated in the UAE?

You must pay 4% of the total cost of the property to the government as a tax when buying a property in Dubai. This fee is divided between the seller and the buyer, but in some cases, the buyer must pay the entire cost.

The payment period for these fees is 60 days; otherwise, the purchase process will be canceled. In addition to the department fees, buyers must also pay property registration and mortgage fees (for those who take out a bank loan). Some of the methods for calculating the annual property charges for houses and apartments in Dubai are:

• Estimating the service fee using the title deed number
• Calculating the service fee by selecting a property on the map
• Inquiring about the property service fee via the Dubai REST application

What are the consequences of not paying the property service fees?

The owner is responsible for paying the property service fees in Dubai. Given that these fees are considered mandatory, If the owner fails to pay the service charges, he may lose possession of his property.

According to Article 32 of Dubai Law No. 6, if the owner refuses to pay the service charges, the management body is obliged to ask him to settle the charges within 30 days, using a written notice approved by RERA; otherwise, serious consequences await him.