The annual costs of owning property in Dubai are mainly the service charge, the building fee you pay as the owner. The Dubai median is AED 172 per square metre a year: on a 73 sq m 1-bedroom flat in JVC that is AED 13,432, about €3,260 or $3,660. If you let it long term, the tenant pays electricity, water and the 5% municipal fee on their DEWA bill, and you are left with the service charge, registering each contract in Ejari, empty months and repairs. If you let it by the night, you also pay utilities, furniture, insurance, the yearly DET permit and management. And if it sits empty or you use it yourself, you pay electricity, water and the municipal fee as well. What it costs you depends on the building, the area and how you use it, so always check the actual fee before buying. We help you run these numbers on each home and, if you like, we handle the letting.
In this guide10 sections
- What annual costs a Dubai flat has
- The service charge, the biggest cost
- Electricity, water, chiller and the municipal fee
- Example: what you keep from a flat let in JVC
- Costs if you let it by the night
- Long-term, short let or empty: who pays what
- Costs that do not come every year
- Annual costs of owning property in Dubai from the UK or the US
- Things to keep in mind
- Frequently asked questions
| Annual cost | Figure | Period |
|---|---|---|
| Dubai median service charge | AED 172 per sq m a year | 2026 budgets |
| Service charge in JVC | AED 184 per sq m a year | 2026 budgets |
| Municipal housing fee | 5% of the rent, on the DEWA bill | Every month |
| DEWA deposit | AED 2,000 for a flat and AED 4,000 for a villa, refundable | Once, when connecting |
| Registering the contract in Ejari | AED 120 in fees | With each contract |
| Holiday home permit | Yearly fee per bedroom, capped per home | Every year |
What annual costs a Dubai flat has
Once the home is handed over, what you pay each year depends on whether you let it long term, by the night or keep it for yourself. This table sums up the costs of a flat let long term, the most common case:
| Cost | Who pays it | How much | How often |
|---|---|---|---|
| Service charge | You, as the owner | Dubai median: AED 172 per sq m a year | Every year, in one or more payments |
| Chiller | Depends on the building and the contract | By use or a fixed fee | Every month |
| DEWA electricity and water | Whoever lives in the home | By use | Every month |
| Municipal housing fee | Whoever lives in the home | With a tenant, 5% of their rent | Every month, on the DEWA bill |
| Registering the contract in Ejari | Agreed in the contract | AED 120 in fees | With each contract |
| Maintenance and repairs | You, unless the contract says otherwise | Depends on the home | When they come up |
| Letting management | You, if you hire it | Whatever you agree with the agency | Every year or with each contract |
| Holiday home permit | You, if you let by the night | Fee per bedroom with a cap per home | Every year |
Dubai’s tenancy law puts maintenance and repairs on the landlord, and official fees for using the home on the tenant, unless the contract says otherwise. That is why it pays to read the contract before signing: it decides who pays for what. It is explained in the guide to renting out property in Dubai.
Buying costs, such as the 4% DLD fee, are paid once and are not covered here. They are in the guide to Dubai property buying costs.
The service charge, the biggest cost
The service charge pays to maintain and run the building and its shared areas, such as cleaning, security, lifts, the pool or the gardens. You pay it as the owner, whether the home is let or not, and it is worked out by multiplying the building’s rate by the size of your home.
In Dubai the fees are not set freely by the building. Each year the building’s budget is approved and audited by RERA and billed through Mollak, the official collection system for owners’ associations. Approved fees are published in the DLD service charge index, building by building, so you can see yours before buying.
With 2026 budgets, the Dubai median is about AED 172 per square metre a year. In 2019 it was about AED 147, so it has risen a little over 2% a year. Within the same area the gap is huge: in JVC some buildings are below AED 35 and others above AED 450 per square metre. Areas from cheapest to dearest are in the guide to Dubai service charges by area.
Always ask when you start paying it. On an off-plan home, the date is set by your SPA and depends on each developer, and on a resale it must be paid up before the sale can be signed.
Electricity, water, chiller and the municipal fee
Electricity and water come from DEWA. To connect a home as the owner you leave a deposit of AED 2,000 for a flat and AED 4,000 for a villa, plus about AED 155 to connect, and the deposit is refunded when you sell. If you let it long term, the tenant usually opens their own account and pays their own use.
The municipal housing fee from Dubai Municipality comes on the same DEWA bill. With a tenant, it is 5% of the annual rent in their Ejari contract, spread over 12 months, and they pay it. If the home is empty or you live in it, the fee is based on an estimated rent and you pay it on your DEWA account. On a rent of AED 70,000, the tenant’s fee is AED 3,500 a year.
Many buildings have central cooling, the chiller, which is not on the DEWA bill. If the home has no meter of its own, the cost is shared and billed by the developer, the owners association or the cooling company. Ask how it is billed in that building before buying, as it adds to fixed costs and changes how attractive the flat is to a tenant.
Example: what you keep from a flat let in JVC
A 73 sq m 1-bedroom flat in JVC sells for a median of AED 1,035,000 and lets for about AED 70,000 a year, 6.8% gross. This is how the year’s costs work out, with one empty month between tenants to be on the safe side:
| AED | € | $ | |
|---|---|---|---|
| Annual rent of a 1-bedroom flat in JVC | AED 70,000 | €16,994 | $19,061 |
| Service charge, 73 sq m at AED 184/sq m | AED −13,432 | €−3,261 | $−3,657 |
| One empty month between tenants | AED −5,833 | €−1,416 | $−1,588 |
| Registering the contract in Ejari | AED −120 | €−29 | $−33 |
| What you keep before management and repairs | AED 50,615 | €12,288 | $13,782 |
Approximate figures, for illustration only.
You keep about AED 50,615, a little over 4.9% of the price, before management if you hire it and before repairs. One empty month is only an assumption: there may be none or more. Try your own figures in the rent estimator, which already has a 1-bedroom flat in JVC set up, and compare areas in the guide to rental yields by area.
The fee moves this result the most. With the same rent, a building at AED 120 per metre leaves you almost AED 4,700 more a year than one at 184, and one at 250 about AED 4,800 less. That is why we look at each building’s fee with you before you choose a home.
Costs if you let it by the night
Short lets earn more than long-term lets, but they also cost more to run. Each home needs its own holiday home permit from the DET, valid for one year and renewable, with a fee per bedroom and a cap per home. Since May 2026 those fees have been waived on a temporary basis.
The home must also be furnished and carry comprehensive insurance, and electricity and water are on you, because they cannot be charged to the guest separately. The guest pays the Tourism Dirham, AED 10 or 15 per room per night depending on the category, collected by whoever runs the home. It is usually handed to a licensed operator, and their fee, cleaning and replacing furniture come off the income.
Once that is done, a well-run holiday home in Dubai usually returns 8 to 12% gross, against 6 to 8% for long-term lets, and where you land depends on each home and the area. The full detail is in the guide to the holiday home permit.
Long-term, short let or empty: who pays what
This comparison sums up which costs fall on you depending on how you use the home:
| Cost | Long-term let | Short let | Empty or for you |
|---|---|---|---|
| Service charge | You | You | You |
| Electricity and water | The tenant | You, they cannot be charged to the guest separately | You |
| Municipal housing fee | The tenant, on their DEWA | Depends on how the home is registered | You, on your DEWA |
| Furniture | Optional | Required, the home must be furnished | Your own |
| Insurance | Optional | Comprehensive insurance required | Optional |
| Permits and fees | Ejari with each contract | Yearly DET permit and Tourism Dirham per night | None |
| Management | Optional | Usually a licensed operator | Not needed |
The service charge does not change: you always pay it. What changes is utilities, furniture and management. With a long-term tenant your costs are the lowest and most predictable. With short lets, income and costs rise together and vary from month to month. Empty, you pay everything and earn nothing, worth bearing in mind if you buy it to use for just a few weeks a year.
Costs that do not come every year
Some costs do not arrive every year, but they are worth keeping in mind:
- Registering each contract. Each tenancy contract is registered in Ejari, with AED 120 in fees. Who pays is agreed between the parties.
- Big repairs. Air conditioning, appliances or plumbing inside the home are on you, unless agreed otherwise. Those in shared areas are covered by the service charge.
- The Golden Visa. If your home is worth at least AED 2,000,000, you can apply for the 10-year Golden Visa. Applying through the DLD costs AED 9,884.75 in total, and it is renewed after those 10 years. It is explained in the guide to the UAE Golden Visa through property.
- The mortgage. If you finance the purchase, the bank repayment comes on top of everything above. Terms for non-residents are in the guide to the Dubai mortgage for non-residents.
Annual costs of owning property in Dubai from the UK or the US
Costs in Dubai are the same wherever you live. What changes is the currency you pay them in and what you declare at home. The UAE does not tax individuals on rental income, but your country of residence normally does, and there the service charge and other costs usually come off. To pay from abroad, a UAE account is usually the easiest route, as covered in the guide to opening a UAE bank account as a non-resident, and tax by country is in the guide to Dubai property tax for UK and US residents.
Annual costs of owning property in Dubai from the UK
The example service charge, AED 13,432, is about $3,660. In pounds it depends on the day’s rate, as the dirham is pegged to the dollar and the pound-dirham rate moves with the pound-dollar rate. UK residents normally pay tax on foreign rental income, so the rent goes on your return to HMRC, generally after allowable costs.
Annual costs of owning property in Dubai from the US
Paying in dollars carries no currency risk. As a US citizen or resident you report the Dubai rent to the IRS after expenses and depreciation, and if you also use the home for some days each year, IRS rules limit the expenses you can deduct. If your foreign accounts exceed $10,000, you file an FBAR.
From anywhere else
The costs are the same. For what you declare at home and which costs you can deduct, ask a tax adviser in your country.
Things to keep in mind
- The biggest annual cost of a Dubai flat is the service charge, and you pay it whether the flat is let or not.
- The Dubai median is about AED 172 per square metre a year, and it varies a lot from building to building.
- Fees are approved by RERA and published in the DLD service charge index.
- With a long-term tenant, electricity, water and the 5% municipal fee are paid by them.
- Maintenance and repairs of the home are yours, unless the contract says otherwise.
- With short lets you also pay utilities, furniture, insurance, the permit and management.
- Empty or for your own use, you pay everything, the municipal fee included.
- In your country of residence, the service charge and letting costs usually come off what you declare.
If you are thinking of buying, we help you compare the fees and costs of each home before you choose and support you at every step. And once you have it, we can handle the letting if you like.
Frequently asked questions
What are the annual costs of owning property in Dubai?
Mainly the service charge, with a median of about AED 172 per square metre a year. If you let long term, the tenant pays electricity, water and the municipal fee, and you are left with the service charge, Ejari for each contract and repairs.
How much does it cost a year to own a flat in Dubai?
It depends on the building. On a 73 sq m 1-bedroom flat in JVC, the service charge is about AED 13,432 a year. If it is empty or you use it, add electricity, water and the municipal fee.
Who pays the service charge in Dubai, the owner or the tenant?
The owner, whether the home is let or not. Rents are usually set with it in mind, but it is not charged to the tenant separately.
How much is the Dubai municipality housing fee?
With a tenant, 5% of the annual rent registered in Ejari, spread over the 12 DEWA bills. The tenant pays it.
What is the chiller and who pays it?
It is the building’s central cooling. It is not on the DEWA bill, and how it is billed and who pays depends on the building and the contract.
How much is the holiday home permit a year?
It is a yearly fee per bedroom, capped per home. Since May 2026 it has been waived on a temporary basis.
Can I pay my Dubai flat’s costs from the UK?
Yes. You can pay by transfer or through a UAE account, and the rent goes on your HMRC return if you are UK resident.
Can I pay my Dubai flat’s costs from the US?
Yes. Paying in dollars carries no currency risk, and you report the rent to the IRS after expenses.
