Management fees are often underestimated. Many investors focus only on the property price and expected rental income, but neglecting service and maintenance costs can reduce ROI by several percent. Therefore, it is important to include them in the financial plan and choose a project with an optimal balance of amenities and costs. These are recurring expenses associated with the operation and maintenance of the building. Although they may seem negligible, for long-term rentals or an investment strategy, they represent a significant item that affects net returns. Ignoring these fees can lead to lower effective investment returns.
Investing in real estate in Dubai is attracting more and more Slovaks and Czechs. However, when planning rental income or future sales, a key factor is often overlooked – management fees and maintenance costs, which can significantly affect cash flow and the real return on investment.
What are management fees (Service Charges)?
Management fees are regular payments that ensure the smooth operation of the building and the comfort of its residents.
What do they consist of (security, reception, pool, fitness, building maintenance)
Management fees include regular expenses associated with the operation and maintenance of the building, ensuring the comfort and safety of its residents.
Cleaning and repairs – maintaining cleanliness and handling minor and major repairs in common areas.
Security and reception – staff who monitor entrances, oversee security cameras, and provide services to visitors.
Administrative services and maintenance coordination – managing documentation, supervising contractors, and coordinating the building’s day-to-day operations.
Maintenance of common areas, pools, and fitness – regular care of corridors, lobbies, wellness areas, and sports facilities.
Why fees are higher in Dubai than in Slovakia
Higher quality of services, luxurious and modern building amenities such as pools, fitness centers, or communal spaces, and more demanding operations mean that management fees in Dubai are traditionally higher than in Slovakia. However, investors receive not only a safe and well-maintained environment for these fees, but also a professionally managed building, regular maintenance, and administrative support, which increases tenant satisfaction and minimizes potential issues. Such high-quality services also enhance the property’s attractiveness in the rental market, supporting stable income and better investment returns.
Average fees in Dubai (2025)
In 2025, management fees in Dubai vary depending on location, property type, and offered services. Luxury areas such as Downtown Dubai or Palm Jumeirah generally have higher fees due to exclusive infrastructure and a wider range of services. Lower fees are found in standard residential areas, such as Marina or Jumeirah Village Circle (JVC), where amenities and management are less costly. Management fees vary depending on location, project type, and building amenities. These fees represent a significant portion of the total costs associated with an investment and must be included when planning returns and cash flow.
Management fees in Dubai apply to all types of properties. These regular fees are charged per square foot and can range approximately from 3 AED to 30 AED, or even higher, according to Bayut.
Apartments in luxury projects (Downtown, Palm Jumeirah)
Luxury locations such as Downtown or Palm Jumeirah generally have higher management fees for several reasons:
Exclusive infrastructure: Buildings in these areas often feature modern lobbies, stylish communal spaces, and top-tier architecture, which increases maintenance costs.
Pools and wellness: The presence of outdoor and indoor pools, saunas, spas, and fitness centers requires regular maintenance and supervision by qualified staff.
Reception and security: 24-hour reception, security personnel, and security systems enhance comfort but also raise operating costs.
Maintenance and service: Regular cleaning, repairs, and equipment checks are essential to maintain a high standard.
Tenant attractiveness: A higher standard of services increases rental demand, which can support stable investment returns in the long term.
Standard apartments (Marina, JVC)
Apartments in areas such as Marina or JVC offer a standard level of amenities, which is reflected in the management fees.
Common areas: Maintenance of corridors, lobbies, and outdoor spaces is regular, but costs are lower than in luxury projects.
Pools and fitness: Most projects have basic facilities, such as a pool and fitness center, with maintenance included in the fees.
Security and reception: Services are standard, with a normal level of supervision and reception services.
Beneficial for long-term rentals: Lower fees mean that the investment is efficient for long-term rentals, as recurring costs are reasonably set.
Balance between cost and comfort: These projects provide adequate comfort for tenants while maintaining attractiveness for investors.
New projects (Expo City, Dubai South)
New areas such as Expo City or Dubai South represent projects where management fees often reflect the developer’s standards and the range of amenities.
Developer standards: Each developer sets fees based on the quality of services provided, the amenities of common areas, and technical solutions.
Project amenities: New projects may include modern community facilities such as parks, playgrounds, pools, fitness centers, or community halls.
Fee flexibility: Fees can vary from project to project and may even be adjusted according to rising operating costs over the years.
Important verification before purchase: Before investing, it is crucial to obtain accurate information on the fee amounts so the investor can realistically assess ROI.
Risk vs. reward: New projects can offer modern housing at a competitive price, but the investor must consider possible fee fluctuations and their impact on overall returns.
Average range: 10–30 AED/m²/year
Typical management fees in Dubai fall within a certain range per square meter per year, with the exact amount depending on several factors:
- Location: Luxury areas such as Downtown or Palm Jumeirah have higher fees, while standard districts like Marina or JVC offer lower rates.
- Project type: New projects or projects with extensive amenities may have higher fees set according to the developer’s standards.
- Scope of services: Fees reflect the services provided – maintenance of common areas, pools, fitness centers, security, administration, or reception.
- Year and adjustments: Fees may change annually depending on the costs of building management and maintenance.
How fees are calculated
Fees in Dubai are usually determined based on the size of the apartment and the type of services provided. This system allows investors to accurately estimate annual costs and include them in the financial plan.
Calculation per m² (example for a 1BR 70 m² in JVC vs 1BR on Palm Jumeirah)
Management fees are usually calculated based on the size of the apartment, i.e., the number of square meters. This calculation method allows investors to easily estimate annual maintenance and service costs.
- For a 1-bedroom apartment of 70 m² in Jumeirah Village Circle, fees are usually lower because it is a standard project with basic amenities, such as common areas, a pool and fitness center, security, and administration.
- The same apartment on Palm Jumeirah has higher fees because the location offers luxury services and amenities – exclusive pools, reception, fitness, higher security levels, and regular maintenance, which increases the total annual costs.
Annual cost in AED and conversion to euros
Management fees are quoted in the local currency, dirhams (AED), which is standard when investing in Dubai. For better investor orientation, however, it is useful to convert these costs into euros according to the current exchange rate.
Such a conversion allows for more accurate budget planning and comparison of costs between different projects or locations. The investor thus gains a clear overview of the total annual maintenance and management costs of the apartment, which is important when calculating the expected rental income or long-term investment returns.
Impact of fees on ROI
Investors often underestimate the impact of management fees and maintenance costs on the actual return on investment. These recurring expenses are deducted from expected rental income and can significantly reduce ROI, especially for long-term rentals or projects with high fees.
Comparison: project with high vs. low fees
When comparing different projects, the difference in profitability according to the level of management fees becomes clear. Projects with high management costs can significantly reduce net rental income and ROI. On the other hand, projects with reasonable fees and an adequate level of amenities offer higher investment returns and better capital efficiency. Therefore, it is important to compare not only the price of the apartment but also the recurring costs associated with its operation.
How Slovaks can optimize costs
When investing in real estate in Dubai, it is important to consider management fees and maintenance costs, which can significantly affect ROI. An investor should know how to reduce or optimize these expenses to make the investment as efficient as possible. There are several practical steps that allow minimizing costs while maintaining the quality of property management.
Verify fee amounts before purchase
Before signing a contract, it is crucial to obtain accurate and up-to-date information on management fees. The investor should know which specific services are included, such as security, reception, pool or fitness center maintenance. It is also advisable to check whether there are any additional fees not included in the price to avoid unexpected expenses. Verifying fees before purchase allows for realistic cash flow planning and expected rental returns.
Compare projects and developers
Not all developers set fees the same way, so comparing projects and developers is essential. This allows the investor to identify which projects offer a reasonable level of services at fair prices. The comparison also includes evaluating the developer’s reputation, management quality, and experience with building maintenance. The result is the ability to select a project where management costs do not significantly impact ROI, increasing the likelihood of stable returns and tenant satisfaction.
Choose a project with an optimal balance of amenities and cost
Investing in an apartment with a balanced level of amenities and reasonable fees is crucial for long-term returns. Luxury amenities may be attractive, but they often increase annual costs without a proportional increase in rental income. The investor should consider which services and amenities are relevant and desirable for target tenants. The right balance between amenities and fee costs allows for stable cash flow and higher ROI.
How Trim Real Estate helps – transparent cost overview
Trim Real Estate provides investors with a complete overview of all costs associated with a property, including management fees, maintenance, repairs, and other services. The transparent overview allows investors to realistically plan ROI and avoid unpleasant surprises. With Trim Real Estate’s support, an investor can select a project with optimal costs and expected returns. Additionally, professional advice helps identify hidden costs that could reduce effective profit.
FAQ – Most Frequently Asked Questions
How much are management fees in Dubai?
It depends on the location, project type, and building amenities. They typically fall within a certain range per m² per year.
What factors determine the fee amount?
Fees depend on building amenities, level of services, size of common areas, and location.
Are the fees fixed or do they change every year?
Fees can be adjusted based on the annual costs of building management and maintenance.
Do I pay fees if I rent out the apartment?
Yes, management fees are recurring and are paid regardless of whether the apartment is occupied.
Do fees affect rental ROI?
Yes, higher recurring costs directly reduce net rental income.
Management fees and maintenance costs are a significant factor when investing in real estate in Dubai. Typical ranges vary depending on location and project type. Luxury projects have higher fees but also higher tenant demand and attractiveness. ROI can be affected by several percent, so it is important to choose projects with reasonable fee levels.
Planning to invest in Dubai? Trim Real Estate can provide a detailed overview of management fees and help select a project that best aligns with your goals and expected ROI.
