Dubai: Why Service Charges Quietly Decide Your Real Return

Dubai: Why Service Charges Quietly Decide Your Real Return

Dubai property marketing loves to talk about views, pools, and finishes. Investors should look at something else first: the running cost structure. Service charges can make a great-looking deal feel average once you do the math.

This is why many experienced buyers don’t start with “Which tower is best?” They start with “What do I pay every year to own this unit, and what value do I get for it?”

Why service charges matter so much

They reduce net rent, not gross rent

They affect resale, because future buyers compare net performance

They often increase over time

They reflect building efficiency and management quality

How smart buyers evaluate them

They compare service charges per square foot across similar buildings

They check what is actually included (cooling, amenities, security, parking)

They look at how the building is managed and how well common areas are maintained

They stress-test the investment: if rents soften, does the return still make sense?

Dubai rewards people who buy numbers, not photos.