Service charge
Also called: service fees, Mollak
A service charge is the annual fee an owner pays towards the running and maintenance of the shared parts of a building or community, usually charged per square foot.
It covers things like security, cleaning, lifts, insurance, chilled water infrastructure, pool and gym upkeep, and a reserve fund for major repairs. In Dubai the charges for jointly owned property are administered through the Mollak system, and budgets are approved rather than set freely by a developer.
For an investor it is the single largest recurring cost and the main reason two apartments with identical rents can produce different returns. It is charged per square foot of the unit, so a larger home pays more for the same services.
Always ask for the current figure for the specific building before buying, not the community average.
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Dubai Diligence is an independent property-data service built on official Dubai Land Department records. We are not a brokerage and no developer pays us. This is general information, not legal, financial or tax advice.
