What are service charges, and what will you pay?
The yearly bill for running your building or community. It can make or break your return, so here's how it works.
Service charges pay for running your building or community, and you pay them every year you own the home. In Abu Dhabi they must be approved by the regulator, ADREC, and paid monthly or quarterly. [1] On Al Reem, for example, they usually run Dh25 to Dh45 per sq ft a year. [2]
What do service charges pay for?
The shared parts of your building or community that every owner benefits from.
Upkeep
Cleaning, landscaping, lifts, pools, gyms and repairs to shared areas.
Running costs
Security, building management, and electricity and water for common areas.
Insurance
Cover for the building's structure and shared parts.
How much will you pay?
Charges are set per square foot, so a bigger home pays more. On Al Reem Island, owners usually pay Dh25 to Dh45 per sq ft a year, with older towers at the lower end and newer or branded buildings at the higher end. [2] Using that range as an example:
| Home size | At Dh25 per sq ft | At Dh45 per sq ft |
|---|---|---|
| 750 sq ft (1-bed) | Dh18,750 a year | Dh33,750 a year |
| 1,200 sq ft (2-bed) | Dh30,000 a year | Dh54,000 a year |
| 2,500 sq ft (villa) | Dh62,500 a year | Dh112,500 a year |
What rules protect you?
Abu Dhabi tightened the rules in 2025. [1]
Regulator approval
ADREC must approve service charges. Any charge it hasn't approved is unlawful and can't be enforced. [1]
No lump sums
Annual charges must be payable monthly or quarterly. [1]
Estimates before you sign
On new projects, developers must tell you the expected charges for the first two years before you sign the contract. [1]
An owners' committee
Once enough units have different owners, residents elect a committee to review budgets and keep an eye on the management company. [1]
What happens if charges go unpaid?
What's the catch?
Read these before you sign anything.
They can wipe out your yield.
On a rental, service charges come straight off your income. Our renting out guide shows the difference they make.
New buildings have no track record.
First-year estimates can rise once the building is running. Ask what similar buildings by the same developer actually charge.
Villas aren't exempt.
Gated communities charge for roads, security and shared facilities too.
Check before you buy.
Ask for the last two years' service charge statements and the approved budget for the building.
What should you read next?
Three guides that follow on from this one.
See all guides
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