A recent ruling by the Dubai Court has settled a key issue for all real estate investors: buyers of properties must now pay service fees starting from the project’s completion date — not from the moment they officially receive the keys.
This decision, issued following a dispute between a developer and several buyers, confirms the stance of the UAE judicial system: as soon as a project is completed and the common facilities are operational, the owner becomes responsible for their share of the community maintenance and management fees.
A Major Turning Point for Investors
Many owners previously believed that service fees only applied after the handover of their units. In reality, these fees cover the maintenance of shared areas, security, cleaning, technical equipment, pools, gardens, and other essential community services.
According to the court’s ruling, the simple fact that the project has been completed is enough to trigger the financial obligation. In other words, even if the buyer has not yet taken physical possession of the property, they must still contribute to the costs required to keep the building in good condition.
Why This Clarification Matters
This ruling primarily aims to protect developers and owners’ associations. Some property owners previously refused to pay service charges until handover, which caused maintenance delays and affected the overall quality of residences.
With this new rule, service continuity and proper building management are better ensured. However, for foreign investors, this decision may seem confusing if they are not familiar with Dubai’s legal framework.
The Dubai Life: A Strategic Ally for Property Owners
This is exactly where The Dubai Life, a leading real estate agency specializing in property management and investor support, steps in.
Thanks to its deep understanding of the market and local regulations, The Dubai Life helps clients avoid common mistakes and stay compliant with the Real Estate Regulatory Agency (RERA).
The agency offers a full-service approach that goes far beyond standard property management:
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Rental property management: tracking service fee payments, maintenance, tenant management, and full contract supervision.
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Legal and administrative support: personalized assistance to understand new rulings and anticipate their impact.
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Rental yield optimization: fast leasing, careful tenant selection, and value enhancement to ensure maximum returns.
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Tailored support: from purchase to handover and post-acquisition management, everything is designed for peace of mind.
With The Dubai Life, property owners can invest confidently, knowing their legal obligations and rental income are in expert hands.
A Strong and Attractive Market
Despite this stricter regulation, Dubai’s real estate market continues to show remarkable strength. The city attracts investors from around the world with its high returns, political stability, and favorable tax environment.
In 2025, rental yields in Dubai remain among the highest globally — often between 7% and 9%, depending on the area. International demand continues to rise, driven by economic growth, major urban projects, and the exceptional quality of life the city offers.
Dubai thus stands out as a must-invest market, where transparency and stronger regulation help reassure buyers.
Conclusion
This Dubai Court ruling highlights the importance of understanding the legal responsibilities that come with a property investment. Paying service fees from the project’s completion may seem burdensome, but it helps preserve the property’s value and ensures the upkeep of shared facilities.
For investors wishing to avoid surprises and manage their assets professionally, The Dubai Life stands out as a trusted partner. With its local expertise, strong network, and comprehensive support, the agency helps every property owner navigate Dubai’s real estate landscape confidently — while maximizing the potential of their investment.
