Your Dubai service charges doubled: why it happens, how to check the RERA-approved budget and how to dispute it

As of October 2026, a Dubai service charge can rise sharply, including by 100% or more, if the new annual budget is approved by RERA; no maximum percentage increase has been identified in the law. That does not mean any emailed figure is automatically payable: the charge must be allocated by the unit area recorded in the register and approved through the RERA budget process. Check the approved rate in the Service Charge Index, separate it from district cooling, and challenge an unsupported invoice in writing before withholding payment.

Can a service charge really double?

Yes, it is possible in principle. We found no numerical cap in Law No. 6 of 2019 or on the DLD pages, such as 10%, 20% or 50% per year. The legal control is different: under Article 27(a), the management entity may not collect service charges from owners without RERA’s prior approval.

A large increase is therefore not automatically unlawful, but neither is an email from a management company enough evidence on its own. The first question is whether the figure appears in the RERA-approved budget for the relevant project, use type and year.

Under Article 25(a) of Law No. 6 of 2019, each owner pays a share of the annual charge in proportion to the area of their unit. Article 25(b) says that the applicable area is the area recorded in the real estate register. This matters where an owner has calculated the bill using internal living space while the registered unit area is different.

If you own a studio, apartment, townhouse or villa, do not assume that a terrace, balcony, storage area or parking space is excluded merely because you do not treat it as living space. The rules point to the registered area, not to an owner’s informal measurement. The treatment of a particular terrace or balcony should be checked against the registered unit data and the approved charge record for that property.

As an illustration only (not an actual rate), for an annual rate of AED 12 per sq ft and a registered area of 800 sq ft, the basic calculation is AED 9,600 per year:

AED 12 × 800 sq ft = AED 9,600.

If the invoice instead uses AED 24 per sq ft, the same unit produces AED 19,200. The arithmetic is simple; the issue is whether AED 24 is the approved rate, whether it is being applied to the correct area, and whether the invoice includes charges that belong elsewhere.

Before judging an investment by headline rent, include annual ownership costs. Our guide to service charges and their effect on property returns explains why a lower purchase price does not necessarily mean lower annual holding costs.

What the approved budget is supposed to control

Law No. 6 of 2019 puts approval of the annual budget ahead of collection. Article 27(a) bars collection without prior RERA approval. Under Article 27(b), RERA does not approve a budget until it has been approved by an audit firm certified and recognised by RERA. RERA may approve a temporary budget where needed before an audited budget is approved under Article 27(c).

The budget is not meant to be a private estimate set by one party. The audit process is intended to review the proposed annual spending and its controls. That does not mean every owner will agree with every line item, but it does create a regulatory checkpoint before collection.

Article 25 also addresses unsold units. The developer remains responsible for service charges relating to units that have not been sold. A buyer should therefore not assume that charges for unsold neighbouring units can simply be redistributed without checking the approved budget and project records.

Mollak is the DLD/RERA electronic system used for the regulation of jointly owned property, including service-charge accounts, budget approval, invoicing and payment channels. DLD introduced an escrow structure for jointly owned property service-charge funds through Mollak in 2019. The circulars relating to registration in Mollak and opening service-charge bank accounts were published in September 2019. No single mandatory start date for every property category has been identified; check it for the specific project.

A reserve can be part of the budget. Article 30 permits a separate reserve for emergency expenses, and, where the reserve is insufficient, DLD may require owners to cover emergency spending with RERA approval. The law does not state that a reserve must equal a fixed percentage of the annual budget. Be cautious with claims that every building must keep a particular 10% or 15% reserve.

How to check a RERA-approved service charge

The DLD Service Charge Index is the starting point. It displays RERA-approved charges by project, property use and year. You can access it through the DLD service, Mollak or the Dubai REST application.

There are three practical search routes:

• Search using the title deed number, the title deed issue year, property type and the year you want to review.
• Use the project-based charge indicator and select the relevant property use and year.
• Use the location map to identify the project and then review the applicable record.

Save the result for both the current year and the previous year. A comparison is more useful than a single number because it shows whether the rate changed, whether the unit category changed, or whether the invoice is applying a different year.

If the online calculator does not return a result, do not replace it with a broker estimate or a figure from a building chat. Record the failed search, ask the management entity for the approved budget reference and invoice breakdown, and use the written-complaint route below if the response is missing or inadequate.

The Index is also more reliable than comparing a building with a nearby building. Market summaries publish broad annual ranges, often from AED 3 to AED 30 or more per sq ft, but these are not approved rates for a particular unit. Broker summaries for 2026 differ even within the same areas: for example, they place apartment ranges in some established waterfront and central districts far above ranges quoted for some suburban communities. These are only rough market orientations. The exact project figure must be checked in the Service Charge Index.

When choosing an area, compare recorded transactions, property type and project-level charges rather than relying on a district average. The Dubai area pages with DLD prices and transaction data can help you place the service-charge figure beside the local purchase evidence.

What may be included — and what should be kept separate

An approved budget may contain several cost categories. The labels vary by project, and individual lines shown in public examples do not always add up neatly to the displayed total. Ask for the breakdown rather than trying to infer it from one headline rate.

District cooling is a separate issue. A cooling provider’s capacity charge, consumption bill, registration fee or deposit is not the same thing as a service charge collected for jointly owned property. If your quarterly total has doubled, split the documents into two piles before disputing anything: the RERA-approved service charge invoice and the cooling invoice. Treating cooling as a management-company service charge can lead to the wrong complaint and the wrong calculation.

VAT treatment is not addressed here because published interpretations of VAT on residential service charges differ. Check the wording and tax treatment shown on the actual invoice with a qualified tax adviser or the relevant authority; a broker does not provide tax conclusions.

Why a bill may jump sharply

A sudden increase is often frightening because the buyer expected a stable annual number at the time of purchase. There is no official rule that the first quoted charge will remain unchanged for later years.

Market commentary commonly points to several possible explanations: an initially low estimate during the early years of a project; a revised budget after audit; a newly funded reserve; higher insurance or staffing costs; and unpaid amounts affecting the project’s cash position. These are typical market explanations, not legal proof for a particular invoice. The approved budget and its breakdown remain the documents to test.

Some projects may also have a fixed multi-year fee arrangement. DLD announced the first approved fixed three-year service fees for one master community in December 2025 and stated that the mechanism was available through Mollak to management companies. This does not mean all Dubai projects have fixed charges or that a charge must fall after a fixed period.

Do not assume that service charges will be reduced next year. A reduction, freeze or further rise depends on the approved budget for that project. No reliable answer can be drawn from a general district average or from the experience of a friend in another building.

For a complete ownership-cost review, including reserve exposure and recurring expenses beyond the purchase price, see how much it costs to maintain a Dubai property in 2026.

How to dispute an unsupported or unclear service-charge demand

Do not begin by ignoring the invoice. Article 28 requires an owner to pay service and usage charges approved by RERA. The better approach is to create a written record while you verify whether the charge has actually been approved and calculated correctly.

Step 1: send a written complaint to the management entity

Ask for the project name, unit number, billed area, rate per sq ft, invoice period, RERA approval reference, approved budget breakdown, payment history and a clear separation between service charges and any district-cooling amount. Attach the invoice and the Service Charge Index result or screenshot if it differs.

The DLD complaint mechanism states that the management entity should respond within a maximum of two working days. Keep the original email, delivery confirmation and reply. A phone call may resolve a simple error, but it does not replace a written record.

Step 2: submit the complaint through Dubai REST

If there is no reply or the reply does not address the documents, submit the complaint through Dubai REST and attach your written complaint and the response, if any. The DLD complaint route does not decide private contractual disputes between a customer and a company, so the scope of the complaint must be clear: an unapproved charge, an incorrect rate, an incorrect unit area, lack of breakdown, or a service-charge administration issue.

Step 3: use the owners’ committee where one exists

Articles 22 and 23 provide for an owners’ committee of up to nine members appointed by RERA. It may be established where ownership has been registered for at least 10% of the units. The committee meets every three months, and each member has one vote.

Under the published interpretation of Article 24, the committee reviews budgets and may refer a complaint to RERA if the management entity has not responded within 14 days. The two-working-day complaint response and the 14-day committee route are different procedural references; retain proof of the initial written complaint for both.

Step 4: take a qualifying dispute to RDC

Article 42 gives the Rental Dispute Settlement Centre exclusive jurisdiction over disputes arising under Law No. 6 of 2019. DLD has stated that common-property disputes, including disputes over charge amounts and services, fall within RDC rather than the ordinary Dubai courts.

Article 46 also permits a written grievance to the Director General within 30 days; the decision on that grievance is final, without removing the right to proceed to RDC. Filing fees and the case timetable depend on the claim; check them with RDC. If you are considering court action, seek advice from a UAE-qualified lawyer. A broker can explain the transaction documents but does not provide legal opinions or represent a party in litigation.

Non-payment, tenants and a previous owner’s debt

Withholding the disputed portion may feel logical, but Article 28 creates a payment obligation for RERA-approved charges. Article 32 gives the management entity a lien over the unit and prevents disposal of the unit until the debt is paid. After written notice and 30 days without payment, enforcement may proceed through the execution judge at RDC; the law also provides for enforcement costs and lawyers’ fees to be borne by the debtor.

Article 29 says that an owner cannot be prevented from using the unit as a method of forcing payment. This does not cancel the debt, remove the lien or prevent formal enforcement.

If the property is rented, Article 16(b) keeps the owner responsible where the tenant does not pay. A lease may allocate reimbursement between landlord and tenant, but it does not remove the owner’s statutory exposure to the management entity. Owners living abroad should keep service-charge notices separate from rental administration and maintain a document trail; practical guidance is available in receiving rental income from Dubai property while abroad.

If an unpaid balance appears after you buy from a previous owner, do not assume that a portal entry alone establishes who must bear the cost between buyer and seller. Article 32 concerns a lien over the unit, while the allocation between parties can depend on the sale documents and the transaction record. Before a resale purchase, request a current statement of service-charge status and resale practice commonly requires outstanding amounts to be cleared for the NOC. An NOC in the UAE is the document commonly required in the transfer process; review its conditions before committing to a completion date.

For an off-plan property before handover, interpretations of when charges begin differ. The answer can depend on completion, possession, handover notice and whether the buyer delayed acceptance. Ask for the contractual provision and project-specific position in writing, and obtain legal advice if money is already being demanded.

Buyer checklist before signing or selling

• Check the current and previous approved rates in the Service Charge Index for the exact project and use type.
• Calculate the annual cost using the registered unit area, not an advertising area.
• Ask the seller or management entity for a current account statement and details of any unpaid service charges.
• Identify separate district-cooling obligations before comparing total monthly costs.
• Check whether a reserve-fund contribution or master-community component is shown in the approved budget.
• Keep the NOC, payment receipts and statements with your title and sale documents.

A buyer considering an eventual exit should treat unresolved charges as a sale issue, because Article 32 restricts disposal while the debt remains unpaid. The process is described in our guide on how to sell an apartment in Dubai.

Frequently asked questions

Can the management company raise my service charge sharply?

No percentage cap has been identified in Law No. 6 of 2019. The increase must still come from a RERA-approved budget, and the owner’s share must be calculated by registered unit area under Article 25.

Where can I see the approved budget or rate?

Check the DLD Service Charge Index through the DLD service, Mollak or Dubai REST using the project, property use and year, or title deed details where available.

Can I refuse to pay only the disputed part?

Article 28 requires payment of RERA-approved charges. Do not treat a dispute as proof that payment can be withheld; submit a written complaint and obtain case-specific legal advice if enforcement risk exists.

What happens if I do not pay?

The management entity may hold a lien over the unit and disposal may be blocked. After written notice and 30 days, Article 32 permits enforcement through the RDC execution process.

Who pays if the apartment is rented out?

The owner remains responsible if the tenant does not pay, under Article 16(b). A tenancy agreement may regulate reimbursement between the parties but does not remove that statutory responsibility.

Do I pay service charges before receiving the keys?

Interpretations of pre-handover liability differ. Check the sale contract, handover communications and project-specific position; seek a UAE-qualified lawyer’s advice where payment is disputed.

How much does an RDC dispute cost and how long does it take?

Filing fees and timetable depend on the claim; verify them with RDC and, where needed, obtain legal advice.

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