We all know that buying property in Dubai is a great investment. Multiple factors like a tax-free environment, world-class developers, competitive prices, a booming economy, and a strong tourism industry turn your purchase into an investment of a lifetime. But, have you ever wondered how your investment is maintained and upkeep? Well, this is what the owners charge a “Service Fee” for.

The Property service fee is a reiterated annual fee paid by the owner of a property for its maintenance and upkeep of the commonly shared and used areas in both Communities and Residential buildings. This fee usually covers different property resources and management features like Security, Cleaning staff, maintenance, landscaping, and general upkeep of the area/building.

It is applied to all kinds of properties in Dubai, whether it’s commercial or retail, villa or apartment, and is charged on “a square foot basis”. The amount of this Service fee is determined on the basis of multiple factors, like: -

Location- The neighborhood in which the property is located, whether it’s an affordable or an exclusive area.

2. Project Type- Whether the said property is Residential Apartments, Townhouses, or Villas.

3. Property Use- The purpose of using the property, can be commercial, residential, retail, office, or service apartments.

Property Service fee includes a list of resources that cover certain shared expenses linked to the maintenance, upkeep, and continued operation of the property. These services are:

Maintainance fee

2. Improvement fee

3. Utility fee

4. Management fee

5. Insurance fee

6. Unit A/C fee

Dubai is an expensive city to live in, and rentals can take a considerably high amount of your salary. However, there are a couple of pocket-friendly and economical options where you can buy good accommodation for a fairly decent price. We will focus on two of these affordable options; Dubai International City (DIC) and Jumeirah Village Circle (JVC).

DIC tops the list of the most pocket-friendly and affordable areas to live in Dubai. It is located in the Al-Warsan area and has borders with well-known communities like Silicon Oasis and Dubai International Academic City. The locality is spread across a massive 8 million square meters and the ROI (Rate of Interest) goes up to 5.5%. All modern amenities are readily available, right from cafés, restaurants, supermarkets, schools, and medical facilities. The entire area is divided into 10 localities, which are then named and designed according to the architectural style of a particular country like China, France, Greece, Spain, Italy; Emirates. DIC has multiple property options, ranging from studios to spacious 1-bedroom to 3-bedroom apartments. The average rental price ranges between AED 32,500 to AED 42,500 annually.

JVC is another perfect addition to the list of economic and affordable areas, with easily available top-notch amenities like supermarkets, cafes, restaurants, nurseries/schools, and even mosques (exceeding 15). It’s a circle-shaped community stretching over an area of 860 hectares in the southeast part of Dubai and is connected by major expressways like Sheikh Mohammad bin Zayed Road, Hessa Street, and Al Khail Road. The average ROI has gone up to 8% due to high demand and relatively low purchase price, which makes JVC a great place to both live and invest.

The area offers numerous options ranging from studio apartments to 1–4-bedroom apartments, villas, and townhouses, which makes JVC an option for diverse people. The average rental price ranges between AED 33,000 to AED 500,000 annually.

DIC is more inexpensive in terms of Property service charges than JVC. Check out the information below to understand the pricing better.

Well both DIC and JVC are good options with good return rates, but what sets them apart is connectivity. DIC isn’t as connected to other areas as JVC and, is quite far away.

So, if you are looking for an inexpensive option but don’t want to compromise on the availability of resources and don’t mind lesser accessibility between other areas, then DIC is your best bet with a decent ROI too. However, if you want both, a great quality of living and a greater ROI, JVC is the right option for you.