Dubai property service charges to rise by up to 10 per cent in 2025
A cost to consider when buying or renting…
Dubai property service charges are on the rise again, with an expected increase of up to 10 per cent in 2025. Industry experts cite rising operational costs – such as maintenance, district cooling, and utility expenses—as the key drivers behind the hike. While Dubai property service charges are just one factor in property decisions, they can impact both owners and tenants, sometimes leading to rent increases. Here's everything you need to know to navigate Dubai property service charges in 2025. Why are Dubai property service charges increasing?
Industry experts highlight several reasons behind the anticipated hike: Maintenance and upgrades: Older buildings often require more frequent upkeep, such as infrastructure enhancements and replacing outdated equipment.
Utility expenses: Rising costs for electricity, water, and district cooling significantly impact operational budgets.
Regulatory compliance: Adhering to updated government safety and sustainability standards adds to the financial load.
Hadi Hamra, managing partner at Driven Properties, notes, 'We're projecting a 5 to 10 per cent rise in service charges across Dubai in 2025, depending on the age and condition of each development.'
'Higher Dewa (Dubai Electricity and Water Authority) bills, along with increased district cooling charges, have significantly impacted operational expenses. As buildings age, maintenance costs escalate, requiring more frequent repairs and upgrades,' said Anmoll Shroff, founder and chairman of Elton Real Estate Development. Where are the highest and lowest service charges?
Not all communities are affected equally. Driven Properties reports that the highest service charges in Dubai are at Bulgari Resorts and Residence in Jumeirah Bay Island, reaching Dh53.7 per square foot. Other areas with high fees include Dubai Marina, Business Bay, Downtown, and Bluewaters.
On the lower end, service charges are more affordable in Jumeirah Village Circle, Marjan, Jumeirah Lake Towers, and Dubai South. How does this affect property buyers and tenants?
Service charges are a factor in property decisions, but not always a deal-breaker. Hamra notes that while high fees can be a deterrent, buyers tend to prioritise location, return on investment, and lifestyle amenities.
For tenants, rising service charges can sometimes lead to rent increases as landlords attempt to recover costs. However, the ability to raise rents depends on market demand and RERA's rental index regulations. 'In competitive areas, landlords may absorb costs to retain tenants, while high-demand locations may allow for rent increases,' Shroff explained. Navigating the changes
To manage the impending rise in service charges: Stay informed: Regularly check for updates from property management and the Dubai Land Department.
Budget accordingly: Anticipate these increases in your financial planning for the coming year.
Engage in community discussions: Collaborate with fellow residents and homeowners' associations to explore cost-saving measures.
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