Question: I bought a property in Dubai as an investment but the service charges are much higher than I expected. When I calculate my net return, my yield is far lower than what I had planned. Can owners challenge service charges in Dubai or are they fixed? DB, Dubai
Answer: Service charges are one of the most misunderstood aspects of Dubai property investment. Many buyers focus heavily on the purchase price and rental income, but they fail to calculate what I call the real ownership cost. In some buildings, service charges can make the difference between a strong investment and a mediocre one.
Service charges cover everything that keeps the building or community functioning: security, cleaning, common-area electricity, landscaping, pool maintenance, lift servicing, management fees and long-term maintenance reserves. In premium developments, these costs rise because the standard is higher, with services such as concierge, multiple pools, extensive facilities and high-end finishing all requiring ongoing expenditure.
The good news is that service charges in Dubai are not supposed to be random. The Dubai Land Department provides a Service Charge Index and many payments are managed through the Mollak system, introduced to increase transparency and accountability. That means owners are not simply paying into an unregulated pot, there is a regulated framework behind it.
Owners can challenge service charges but it’s rarely an individual battle. The process usually requires collective pressure through the owners’ group or management structure, requesting budgets, reviewing vendor contracts and questioning whether services are being delivered efficiently. In some cases, the issue is not the charge itself, but poor management and inflated contracts.
My advice to investors is to always check service charges before buying. A lower purchase price doesn’t always mean better value if the annual costs are excessive. In 2026, the smartest buyers are focusing on buildings with stable service charge structures, sensible maintenance planning and realistic long-term ownership costs, because net yield is what matters, not gross.
Q: I reserved an off-plan unit in Dubai and paid a booking fee. The agent confirmed the unit price in writing. But when the Sales and Purchase Agreement (SPA) arrived, the developer said the price had increased and gave me a choice to either accept it or potentially lose the unit. They said they’ll refund the booking fee but I feel it’s unfair. Can developers legally do that? DT, Abu Dhabi
A: This is an off-plan market problem and it’s potentially becoming more common during fast-moving launches. Many buyers assume that once they pay a booking fee, the price is locked. But in legal terms, the booking form is often not the final contract, the real binding agreement is the SPA.
In many cases, the booking form is simply a reservation agreement that holds the unit temporarily while the developer prepares the SPA. If the booking agreement includes wording like “subject to final approval” or “terms may be revised before SPA signature”, then the developer may have legal flexibility. This is why buyers must treat the booking form as more than a formality, it’s the first legal document in the transaction.
That said, if you have written confirmation of the price and the booking form does not clearly allow price changes, the developer is risking reputational damage and potentially regulatory scrutiny. The UAE's property market is built on confidence and behaviour like this undermines trust. The issue is that buyers often don’t have the time or appetite to fight it, especially when demand is high and developers can easily refund and sell to someone else.
If you want to challenge it, you should request written justification and escalate through formal channels, if necessary, particularly, if you believe you were misled. But you should also weigh the commercial reality, the market is moving quickly and legal disputes can take time.
The best lesson here is preventive: never assume the price is secure until the SPA is signed. If you want certainty, insist on clear written terms, review the SPA clauses early and work with reputable brokers who understand how these launches work. In a fast, off-plan market, due diligence is the difference between a good investment and an expensive surprise.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@allegiance.ae
