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Costs and Service Charges for Commercial Properties in Dubai in 2025.

  • Writer: Jessica Lightbody
    Jessica Lightbody
  • Sep 7
  • 3 min read
Commercial Properties in Dubai, Costs and Service Charges

Dubai remains a global gateway between East and West, attracting corporations, investors, and entrepreneurs to its thriving commercial property market. Supported by its strategic location, transparent regulations, and business-friendly environment, demand for office, retail, and industrial spaces continues to grow in 2025. Beyond purchase or lease values, buyers must also factor in DLD fees, mortgage costs, and annual service charges, all of which shape long-term profitability and operational expenses.


What Are Commercial Property Service Charges in Dubai?

Commercial property service charges are recurring annual fees levied on owners and occupiers for the upkeep of common facilities and infrastructure. Once an office, retail unit, or warehouse is purchased or leased, the owner becomes responsible for contributing to these communal costs.

For commercial spaces, this often covers:

  • Security systems and CCTV

  • Cleaning and waste management in shared areas

  • Utilities for common facilities (lobbies, lifts, parking, district cooling where applicable)

  • Fire safety and building maintenance systems

  • Insurance and community management costs

These charges are regulated by the Real Estate Regulatory Agency (RERA) and calculated through the Mollak Dubai system, ensuring transparency and standardized cost allocation.


Who Pays Commercial Property Service Charges?

Every commercial property owner—whether an office space in Business Bay, a retail shop in Dubai Marina Mall, or a logistics warehouse in Jebel Ali, is responsible for service charges. These fees are non-negotiable and apply annually, based on property type, size, and amenities.

For example, a Grade A office in DIFC will typically command higher service charges than a warehouse in Dubai South, reflecting the advanced infrastructure, facilities, and prestige of the location.


What Do Service Charges Cover in Commercial Properties?

Commercial service charges are divided into categories to ensure fair allocation:

  • Building Maintenance: HVAC, elevators, fire alarms, access control systems

  • Shared Utilities: Lighting, landscaping, water features, and cooling systems

  • Community Insurance: Liability cover for shared spaces and business facilities

  • Master Community Fees: Contribution to wider business district infrastructure

In addition, developers and Owners Associations often collect a sinking fund, earmarked for major capital repairs such as façade refurbishment, HVAC system replacement, or safety upgrades—ensuring long-term asset sustainability and protecting property values.


How Are Service Charges Calculated in 2025?

Charges remain calculated on a per-square-foot basis, though the rates vary widely across asset classes:

  • Warehouses & Logistics Units: AED 2–6 per sq. ft

  • Mid-market Offices (JLT, Dubai South): AED 13–17 per sq. ft

  • Prime Offices (DIFC, Downtown): AED 20–40 per sq. ft

  • Retail Units (Malls, Marina, Palm Jumeirah): AED 25–45 per sq. ft

  • Ultra-prime Towers (Burj Khalifa, DIFC Gate Towers): up to AED 70+ per sq. ft

Recent 2025 adjustments by RERA have led to 10–15% reductions in mid-tier communities, boosting investor confidence and lowering operational costs for businesses.


Dubai Land Department (DLD) Fees Explained

In addition to service charges, commercial property transactions in Dubai require payment of DLD fees, which ensure legal registration and compliance.

  • Transfer Fee: 4% of the property’s value (usually paid by the buyer)

  • Registration Fee: AED 2,000–4,000 depending on property value, plus 5% VAT

  • Mortgage Registration: 0.25% of loan value + AED 290 admin fee

  • Title Deed Issuance: AED 580 for offices/retail, AED 430 for land

These one-time fees are standard across Dubai and must be factored into upfront investment costs.


Disputing or Reducing Commercial Service Charges

While service charges are regulated, disputes can arise if costs appear excessive or inconsistent. In such cases, commercial property owners can:

  1. Raise the matter with the Owners Association.

  2. Escalate the complaint to RERA via the DLD portal.

  3. Provide supporting documentation (maintenance records, invoices) for review.

RERA benchmarks fees against the official service charge index to ensure fairness. Most cases are resolved via mediation, avoiding lengthy legal processes.


Future Trends for 2025 and Beyond

  • Digital Transparency: Mollak continues to streamline service charge visibility, allowing owners to track and pay fees online.

  • Sustainability: Service charges increasingly include provisions for green building upgrades, solar systems, and smart building management.

  • Smart Cities Integration: AI-driven maintenance systems and IoT solutions are lowering costs and improving efficiency in Dubai’s commercial hubs.

  • Investor Confidence: Lower mid-market service charges and stable DLD fees are expected to attract further multinational tenants and institutional buyers.


Navigating service charges and fees in Dubai’s commercial property sector is crucial for investors, tenants, and developers aiming to maximize profitability. By understanding DLD costs, RERA regulations, and service charge structures, businesses can budget more effectively, safeguard asset value, and avoid surprises.


In 2025, with greater transparency, lower costs in mid-tier markets, and Dubai’s ongoing push toward sustainability, the emirate’s commercial real estate sector continues to stand as one of the most competitive and investor-friendly in the world.



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