When buying an apartment in Dubai, it is easy to focus on the price, the view and the building’s facilities. But there is another cost to consider: service charges.
These are annual fees paid by property owners to maintain shared areas and facilities. They can cover security, cleaning, lifts, swimming pools, gyms, landscaping and general building maintenance
The amount varies from one building to another. So, how do you know if your service charges are reasonable?
Know what affects property service charges.
The size of your unit is one factor. In Dubai, service charges are generally calculated using the property’s area and an approved rate per square foot.
The building itself also matters. A development with several swimming pools, landscaped gardens, gyms and other shared facilities may cost more to maintain than a building with fewer amenities.
Age and maintenance needs can also affect costs. However, a higher fee does not always mean better service, just as a lower fee does not automatically mean better value.
How can you check what you pay?
If you own an apartment in Dubai, start by checking your annual service-charge statement. Make sure you understand the rate, the amount being charged and which services are included. You can also use the Dubai Land Department’s official website to check approved service-charge rates for applicable developments.
Compare your property’s rate with similar buildings, but remember that facilities and maintenance requirements can differ. If something does not look right, ask the building management for a breakdown. This can help you understand where the money is going.
Why buyers should check before purchasing
Service charges affect the cost of owning a property over time. Two apartments may have similar prices but very different annual service charge expenses.
For investors, these fees reduce the rental income left after costs. For homeowners, they form part of the yearly budget for living in the property.
Before buying an apartment in Dubai, ask about service charges alongside the purchase price, Expected rent and other ownership costs. A property with attractive facilities may still suit your needs, but you should know what it will cost to maintain.
The cost that goes beyond the purchase
Service charges are easy to overlook when comparing apartments. Yet they can make a noticeable difference to the cost of owning a property for several years.
Checking them early gives buyers a clearer picture of what they can afford. It also helps current owners understand whether their charges match the services and facilities they receive.
Source: National