Owning an apartment in Dubai is popular among foreigners for investment and permanent residence.
Let’s break down the main expense items for maintaining an apartment in Dubai, from utilities to annual maintenance.
Dubai is not just luxury but also expenses: What Apartment Owners Should Consider
Purchasing an apartment in Dubai is just the first step on the path to owning property in one of the most modern and rapidly developing cities in the world. However, it’s important to remember that, in addition to the initial cost of housing, every owner faces regular expenses. These include:
- Utility bills
- Annual service charge
- Security and safety
- Taxes and fees
- Repairs and upgrades
- Internet and television. The average cost in the UAE is $130–300 per month.
- Cleaning
Each of these items contributes to the overall budget for maintaining the property.
Utility Bills: How to Avoid Being Overwhelmed by Water and Electricity Costs
Utility payments are one of the significant expenses for property owners in Dubai. They depend on the size of the apartment and the number of residents. Water and electricity are provided by the Dubai Electricity and Water Authority (DEWA), and their costs can vary based on the apartment’s area, the number of residents, and consumption.
Upon signing a contract, the client pays a fee to activate a new DEWA account.
- Electricity rates range from 23 to 38 fils per kWh. Average electricity bills for a two-bedroom apartment can range from 500 to 1500 dirhams per month.
- The cost of water also depends on consumption and can range from 10 to 30 fils per liter.
For example, residents can set up automatic payment, and utility fees will be automatically deducted from their bank account each month.
To reduce electricity costs, it is recommended to install energy-efficient appliances and use smart lighting and air conditioning control systems.
Utility payments for water and electricity in the UAE are only paid by foreigners; locals are exempt from these costs up to certain limits.
Annual Apartment Maintenance: What Lies Behind the "Service Charge"
The annual maintenance (service charge) is a mandatory payment for all property owners in Dubai. The funds are allocated for maintaining common areas, repairs, cleaning, elevator maintenance, and more. The amount of the service charge depends on the developer, area, and type of property.
For apartments, the average service charge ranges from 10 to 30 dirhams per square foot per year.
These funds are used to maintain pools, gyms, parking lots, and security services. This contributes to a comfortable living experience and maintains the quality of services in residential complexes.
Security and Safety: Why You Have to Pay for This?
One of the features of life in Dubai is a high level of safety. Modern residential complexes provide 24/7 security, video surveillance systems, and access control. These services are included in the service charge; however, additional fees may be charged if the building uses premium security systems.
Taxes and Fees: What You Need to Know About the Tax System in the UAE
There are no direct property taxes in the UAE; however, apartment owners are required to pay certain fees. For instance, utility fees paid to DEWA include a rental tax, which is 5% of the annual rental value of the apartment for residents and 10% for commercial properties. This tax is automatically included in utility bills.
It is important to note that when purchasing an apartment in Dubai, a property transfer tax of 4% of the property’s value is also charged.
Repair and Upgrade Expenses: How to Keep Your Property in Perfect Condition
Like in any other country, over time, your property may require repairs or upgrades. Depending on the condition of the apartment and the level of use, repair expenses may include:
- Cosmetic repairs (painting walls, replacing coverings)
- Replacement of appliances
- Air conditioning maintenance (air conditioners operate most of the year in Dubai, increasing wear and tear).
Average costs for keeping an apartment in good condition can range from 2000 to 10,000 dirhams per year.
Regular maintenance of air conditioning and other appliances can help prevent costly breakdowns.
Money-Saving Hacks: How to Reduce Utility Costs and Live Comfortably
You can reduce the expenses for maintaining an apartment in Dubai through the following simple yet effective methods:
- Use appliances marked “Energy Star” for energy savings.
- Installing individual water and electricity meters will help you better control expenses.
- Setting timers and control systems for air conditioning can save electricity.
How to Properly Plan Your Budget for Maintaining an Apartment in Dubai
When planning your budget, it is important to consider all the main expense items. It is advisable to set aside a certain amount each month for utility payments, maintenance, and repairs, as well as for potential unforeseen expenses.
- Utility bills: 1500 — 4000 dirhams per month.
- Service charge: 10,000 — 30,000 dirhams per year.
- Repairs and upgrades: 2000 — 10,000 dirhams per year.
When planning property maintenance expenses, it is worth consulting a real estate agent. Experienced professionals can help you account for all possible costs, including hidden expenses, and provide up-to-date information on tariffs.
The Cost of Maintaining an Apartment in Dubai Is More Than It Seems
Owning property in Dubai involves regular expenses that are important to consider when budgeting.
To avoid unexpected costs, it is better to turn to Livrichy agents. They will explain all the issues related to utility payments, maintenance, and property repairs in Dubai and help you plan your budget.
sources used
- DEWA – Dubai Electricity and Water Authority: https://www.dewa.gov.ae/
- Dubai Land Department – https://www.dubailand.gov.ae/
- RERA (Real Estate Regulatory Authority) https://www.rera.gov.bh/en/
