What's the Real Cost of Owning an Investment Property in Dubai?
Our hidden costs guide covers what you pay at the point of purchase. This article answers a different question: once you hold the title deed, what do you pay every year after?
Annual Service Charges
This is the largest recurring cost. Buildings charge per square foot per year, and the rate climbs with the amenities on offer — pool, gym, concierge. On a AED 1,500,000 apartment, expect annual service charges between AED 10,000-25,000, depending on the building.
Vacancy Periods
The unit sits empty between tenants. Budget for 2-4 weeks of vacancy a year as a realistic baseline. During that stretch, service charges and any mortgage payment continue while rental income doesn't.
Property Management Fees
If you're not managing the property yourself, a management company typically takes 5-10% of annual rental income. In exchange, they handle tenant sourcing, service charge tracking, and maintenance coordination.
Maintenance and Repairs
Set aside a buffer for the unexpected — a broken AC unit, repainting, appliance replacement. Budgeting 3-5% of annual rental income for this is a reasonable starting point.
If You're Financing with a Mortgage
Loan payments sit alongside service charges and other expenses, and they shape your net cash flow directly. Run the numbers against real CBUAE rules using the mortgage calculator on any listing's detail page on our site.
The Off-Plan Difference
You pay no service charges before handover, but they start immediately after — some buyers forget this and misjudge their first-year budget. See our off-plan guide for the full process.
How Much Should You Budget in Total?
Add up service charges, vacancy, maintenance, and any management fee, and you land at roughly 20-30% of annual rental income going to ongoing costs. Building your net yield expectation around that figure keeps it realistic — see our ROI calculation guide.
Want a full ownership cost breakdown for a specific property? Reach out.
Frequently Asked Questions
How much are annual service charges in Dubai?
It varies by building and amenities; on a AED 1,500,000 apartment, expect AED 10,000-25,000 a year.
How much do property management fees cost?
Typically 5-10% of annual rental income.
How much should I budget in total for ownership costs?
Roughly 20-30% of annual rental income goes to service charges, vacancy, maintenance, and management fees combined.