What You Need to Know About Service Charges for Off-Plan Properties in Dubai

When buying an off-plan property in Dubai, many buyers assume that costs only begin when they receive the keys. However, the Dubai Rental Disputes Centre has recently confirmed that this is not the case. Service charges actually start to accrue from the moment you make your final payment, not from the actual handover date.

Paying for a Property You Cannot Yet Use

Many international buyers are unaware of this: once you have paid the full amount, you are officially the owner. This also means you are responsible for the service charges, even if the keys have not yet been handed over.

For example, if you buy a 93 m2 (approximately 1,000 square feet) apartment and the average service charge is AED 15 per m2 per year, that amounts to AED 15,000 (approximately €3,750 / £3,200) per year. If the handover is delayed by two years, you would pay AED 30,000 (approximately €7,500 / £6,400) in service charges for facilities you do not yet have access to. No swimming pool, no gym, no parking garage. Yet the bill continues to accrue.

Understand the Legal Framework to Avoid Surprises

This rule comes as a surprise to many investors, especially those unfamiliar with Dubai’s legal system. It further highlights the importance of being advised by someone with a thorough understanding of the local legislation. Service charges are often not included in your initial budget but can add up significantly when construction is delayed.

Without proper guidance, these hidden costs can have a serious impact on your return on investment. It is crucial, especially for larger projects with longer construction periods, to know exactly when costs begin and what your rights are.