The main annual cost is the service charge, and it is highly building-specific: roughly AED 3–30 per square foot for most stock, rising to around AED 68/sqft in prestige towers like Burj Khalifa. Do not use a generic estimate — check the official RERA/DLD Service Charge Index for the exact building, which publishes the approved rate. On top, budget the 5% housing fee (levied on annual rental value via DEWA) and building/contents insurance. For a 2-bedroom apartment of about 1,500 sqft in Dubai Marina, service charges alone typically run in the region of AED 22,500–30,000 a year. Confirm the current indexed rate for your specific building before you buy.
Service charges: use the official index, not a guess
The dominant ongoing cost of owning a Dubai apartment is the annual service charge, paid to the owners' association for maintenance of common areas, security, cleaning, chilled water, gym and pool upkeep and the sinking fund. The range is wide because it tracks the building's standard: roughly AED 3–30 per square foot covers most of the market, but ultra-prestige towers command far more — around AED 68 per square foot has been recorded in landmark buildings such as Burj Khalifa. That spread means two apartments of identical size can carry very different annual bills depending purely on the building.
The essential discipline is to stop estimating and start checking. The RERA/DLD Service Charge Index publishes the approved service charge rate for each registered building in Dubai, so before you buy you can look up the exact indexed figure for that specific tower rather than relying on an agent's round number or a generic per-square-foot assumption. A building with a low headline price but a high indexed service charge can be a worse net proposition than a slightly dearer building with efficient charges — the index is how you see that before committing.
The full annual picture — worked example
Service charges are the biggest line, but not the only one. Add the housing fee — 5% of the property's annual rental value, collected in instalments through the DEWA bill — and building and contents insurance, which is modest but real. Utilities (DEWA, cooling, internet) are the occupier's running costs on top. For an investor, factor in property-management fees if you let the unit, plus periodic maintenance and any vacancy between tenants.
A concrete example makes it tangible. Take a 2-bedroom apartment of about 1,500 sqft in Dubai Marina. At an indexed service charge of, say, AED 15–20 per square foot, the annual service charge alone is roughly AED 22,500–30,000. Layer on the 5% housing fee on the annual rental value and insurance, and the true annual cost of ownership is meaningfully above the service charge line by itself. These are directional figures; the exact number turns on the specific building's indexed rate and the property's rental value, so confirm both with the RERA index and the owners' association before you rely on them.
Sources
Primary and expert sources behind this answer:
- RERA (Real Estate Regulatory Agency, part of DLD) — Trustee offices, escrow audit and Service Charge Index ↗
- Dubai Municipality — Housing fee (5% of annual rental value, billed via DEWA) ↗
This page is general information, not legal or tax advice. Dubai property fees, escrow, mortgage and freehold rules — and the tax of your own country of residence — are technical and change frequently. Every figure and rule here must be confirmed with the Dubai Land Department, a UAE bank and a tax adviser or notary in your country of residence for your specific situation before you act.
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