Homeowners are looking for the current variation in the Service Charges Index in Dubai 2023, a new era in the Dubai Real Estate Industry.
Dubai real estate is currently booming, with investors flocking for more and more investments and changing the Service Charge Index on a yearly basis. The Service Charges and property costs associated are upsurging at a very fast pace. Penny Realty Real Estate is the most trusted real estate in Dubai, offering off-plan properties for sale in Dubai with the best costs and charges, and payment plans.
Dubai Service Charge Index
Dubai Service Charges are the maintenance charges paid to the Dubai Land Department for the amenities and the property. The maintenance index and RERA service form the basis of these maintenance service charges. Moreover, the charges are per square foot ranging between AED 3 to 30 per month or it can be more depending on the Dubai Community or area. These charges have to be paid by every home/ property owner in Dubai.
On the contrary, the service charges are based on a per square foot basis which varies from project to project, and multiple other factors like apartment location, balcony or terrace etcetera. Dubai service charges are an additional fee to be paid for buying a property in Dubai, along with other service charges including registration fees, property transfer, security deposit, Dubai electricity, agency fees, insurance fees, and water authority fees.
While buying a property in Dubai, another additional cost is charged, known as the Sinking Fund. The fund for properties for sale in Dubai acts as reserve funds that help in saving up money to be used at later stages for maintenance, major repairs, and multiple other activities in the future. The sinking fund covers items like external cladding, renovation, repair, roof replacement, balconies, fire alarms, A/C systems, safety systems, parking areas, windows, elevators, and so on. Furthermore, other service charges include costs for district cooling and chiller-free units within the community.
Are you planning to Buy a Property in Dubai?
Concerned about the Service Charge Index – Your problem is solved!
If so then there are certain costs which should be taken into account before actually taking the plunge.
The rule of thumb is to make an approximation of the one-time cost to be around 7 percent of the total valuation of the property. It is essential to keep it as a buffer to manage mortgage fees, trustee fees, DLD registration fees, and multiple similar charges. On the contrary, service charges are an important cost that is paid on an annual basis, however, that varies for each building.
Penny Realty Real Estate brings you the most prominent areas to enable you to estimate the costs associated with purchasing each kind of property, in a specific area.
Service Charge Index By Community
The service charge index for Arabian Ranches 1 and 2 is reasonable and affordable, which costs AED 2.81 per square foot for AR1 and AED 2.50 per square foot for AR2.
Al Barari is one of the best areas to purchase property in Dubai, may it be a villa or an apartment. Therefore, expect the cost to be AED 7.86 per square foot for this year 2023.
City Walk is one of the most popular areas in Dubai, which offers a wide variety of social arenas, restaurants, and much more which is why it costs AED 12.63 per square foot.
One of the most expensive areas in Dubai, in terms of service charges for residential property for homeowners and investors. Emaar and Damac are the major property developers offering residential properties a completely luxurious outlook.
The best part is that most properties are chiller free, therefore the residents don’t have to pay extra costs per month for chiller charges. On the contrary, hotel apartments are comparatively pricier than the residential properties. Below listed are some of the properties and their respective service charges.
1. Burj Vista – AED 13.71 per square foot
2. The Residences – AED 24.3 per square foot
3. The Address Downtown – AED 25.14 per square foot
4. The 118 – AED 27.99 per square foot
5. Burj Khalifa – AED 72 per square foot
Cultural Village is also an exclusively amazing locality in Dubai with great views and amazing architecture. D1 Tower has a service charge of AED 16.52 per square foot, while that of Palazzo Versace has AED 14.46 per square foot, which is comparatively a very reasonable service charge.
Dubai Marina is the most sought-after area in Dubai, the service charges varies from building to building. Some of the costs associated with residential towers in Dubai Marina are as mentioned below starting from the lowest:
- Park Island costs AED 10.47 /sqft
- Marina Quays costs AED 11.10 /sqft
- Emaar 6 costs AED 14.69 /sqft
- Emirates Crown costs AED 17.02 /sqft
- Trident Bayside costs AED 17.11 /sqft
- Le Reve costs AED 18.25 /sqft
- Cayan Tower costs AED 21.43/sqft
- Marina Gate costs AED 21.45 /sqft
- Marina Promenade costs AED 23.29 /sqft
Jumeirah Beach Residence
Jumeirah Beach Residence offers amazing apartments for sale in Dubai, some of the residential developments in JBR offer the following service charges, listed from lower to higher:
- Murjan costs AED 14.89 /sqft
- Shams cost AED 15.02/sqft
- Rimal costs AED 15.73/ sqft
- Sadaf costs AED 19.53/ sqft
Jumeirah Golf Estate
Jumeirah Gold Estates is another great area in Dubai, where each development has varying service charges.
- Hillside costs AED 3.33 /sqft
- Wildflower costs AED 4.11/sqft
- Sienna Views costs AED 4.21 /sqft
- Sanctuary Falls costs AED 4.56/sqft
- Sienna Lakes costs AED 4.6/ sqft
- Lime Tree Valley costs AED 5.01 /sqft
- Flame Tree Ridge costs AED 5.01 /sqft
- Orange Lake costs AED 5.88 /sqft
- Whispering Pines costs AED 5.94 /sqft
- Redwood Avenue costs AED 6.63/sqft
- Olive Point costs AED 6.65 /sqft
There are a number of other areas which have not been listed in this blog, however, some of the major and most popular areas have been mentioned for making an estimate of the service charge index for different properties.
Penny Realty Real Estate brings the best latest luxury real estate news in Dubai, where all the major apartments for sale in Dubai and villas for apartments in Dubai are listed for homeowners and investors looking for properties.