Dubai apartment yield: an after-service-charge Mollak worksheet (2026)
Lida MoghaddamDisclaimer: This article is for general informational purposes only. It is based on cited public data and published under Lida Moghaddam's RERA-licensed masthead. It is not financial, legal, or investment advice. Dubai's property market moves quickly, so figures, yields, and rules may change or become outdated by the time you read this. Verify current information with the relevant authority or a qualified professional before acting. Read the full disclaimer.
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DLD's live Service Charge Index offers 2026 as a budget-year selection and says arrears are excluded, as verified on 11 September 2026. In the illustrative worksheet, an apartment advertised at 7.5% gross becomes 6.3% after the approved service charge. The inputs teach the method; retrieve the building-specific rate from the index.
Gross and net yield answer different questions
Gross yield is annual rent divided by property price. It is a quick comparison, but it ignores owner costs.
Net yield deducts costs from rent before dividing by price. This worksheet deducts only the service charge, so “yield after service charge” is the precise label. Dubai Land Department, or DLD, defines service charges as annual RERA-approved owner charges for managing, operating, maintaining and repairing jointly owned property (DLD FAQ, verified 11 September 2026). RERA is DLD's Real Estate Regulatory Agency.
Retrieve the rate from the matched property
Mollak is DLD and RERA's service-charge system for jointly owned property. It monitors payments and related accounts and allows owner payments (Mollak, verified 11 September 2026). DLD's Service Charge Index is the public enquiry service for RERA-approved fees (DLD, verified 11 September 2026).
Open the official index
Use the DLD website, Mollak or Dubai REST. DLD lists all three channels, as verified on 11 September 2026.
Match the property
Use the certificate or title-deed route where available, or select the main project, project, use and budget year. DLD's flow asks for project, use and year (DLD, verified 11 September 2026).
Record the basis
Save the approved rate, budget year and area basis. Do not substitute a rounded listing area.
Reconcile the invoice
Compare the result with the latest invoice and payment statement. The live index says service charge does not include arrears, as verified on 11 September 2026.
An approved rate is not a future bill
The index establishes a RERA-approved rate for the matched property, use and budget year. DLD says the budget is approved after an audit by an approved legal accounting office (DLD FAQ, verified 11 September 2026).
It does not establish next year's rate, payment status or the final amount on a later invoice. A future invoice may use another approved budget year, while arrears are excluded. DLD also distinguishes service charges from usage charges for common facilities in a main development (DLD FAQ, verified 11 September 2026).
DLD says the owner's share is the approved rate multiplied by the title-deed area (DLD FAQ, verified 11 September 2026). Record the listing area, title-deed area and index billing basis separately.
Illustrative example: 7.5% becomes 6.3%
Every input below is invented. None is a rate, rent or price for a real building.
Gross yield: AED 75,000 ÷ AED 1,000,000 × 100 = 7.5%.
Annual service charge: 800 sq ft × AED 15 per sq ft = AED 12,000.
Income after the charge: AED 75,000 - AED 12,000 = AED 63,000. Yield after the charge: AED 63,000 ÷ AED 1,000,000 × 100 = 6.3%.
The deduction changes the displayed yield by 1.2 percentage points. It does not mean the apartment produced 6.3%, because rent, occupancy and costs remain assumptions until actual records replace them.
Sensitivity: test the rate, do not guess it
The table holds the illustrative AED 1,000,000 price, AED 75,000 rent and 800 sq ft area constant. These are worksheet scenarios, not Dubai market ranges.
For apartments with the same price and rent, a larger applicable area or higher approved rate produces a lower after-service-charge figure. For wider context, see withlida's [Dubai rental yield index](/insights/dubai-rental-yield-index-2026), then replace broad comparison numbers with building-specific records.
Complete the cost file before relying on net yield
Service charge is one recurring cost. A fuller net-yield worksheet can add actual vacancy, leasing and management charges, repairs, insurance and mortgage interest. Acquisition costs belong in the initial cost basis, not in annual rent.
Keep the title deed, exact index result and budget year, latest invoice, payment status and tenancy contract together. DLD says Dubai REST gives owners service-charge information and payment access (DLD, verified 11 September 2026).
Official sources
- DLD Service Charge Index overview, verified 11 September 2026
- DLD live Service Charge Index, verified 11 September 2026
- Mollak, verified 11 September 2026
- DLD Frequently Asked Questions, verified 11 September 2026
- DLD Dubai REST, verified 11 September 2026
Who pays service charges for a Dubai apartment?
DLD defines the charge as an annual RERA-approved amount collected from the owner of a unit in jointly owned property, as verified on 11 September 2026.
How is the annual service charge calculated?
DLD's FAQ, verified 11 September 2026, says to multiply the RERA-approved index rate by the area owned in the title deed. Match the project, use and budget year.
Is the index result the final invoice?
DLD's Service Charge Index, verified 11 September 2026, confirms the approved rate for the matched selection and says it does not show arrears. Reconcile it with the unit's current statement.
Lida MoghaddamArchitect-turned-real-estate-specialist based in Dubai. She helps buyers, sellers, and investors read property with a designer's eye — structure, location, and long-term value.
