Service charges (the law calls them "service fees") are what every owner in an Abu Dhabi building or community pays for its shared parts: managing, operating, maintaining and repairing them. Your share is set by the area of your unit against the whole property. No one may charge them unless ADREC, Abu Dhabi's real estate regulator, has approved them, with the approval of the Department of Municipalities and Transport (DMT); a fee charged without that approval is unlawful, and you can claim it back. Until your unit is handed over, the developer pays them, not you. The rules are in Administrative Decision No. 25 of 2025 on jointly owned property, which ADREC publishes in full on its regulations page.
This is a summary to help you budget before you buy, not legal, tax or financial advice. Service charges are set building by building and change every year, so ask for the current approved figure for the property you are looking at.
Which rules apply?
Abu Dhabi's Law No. 3 of 2015 on regulating the real estate sector sets the frame, and three decisions issued under it set the detail:
| Rule | Covers |
|---|---|
| Decision No. 25 of 2025 | Common parts, service fees, budgets, management companies |
| Decision No. 26 of 2025 | The owners' committee bylaws |
| Decision No. 24 of 2025 | Escrow withdrawals before 20% completion |
The DMT announced the package on Mar 27, 2026, saying Decision No. 25 sets out the roles of owners, developers and management companies, under ADREC's supervision. Decisions No. 25 and 26 each say they take effect when published in the Official Gazette. Every rule below is from Decision No. 25 unless another source is named.
If you are looking at Al Reem Island or Al Maryah Island, property there is registered with Abu Dhabi Global Market (ADGM) under its own regulations, as our post on buying property in Abu Dhabi explains, so confirm with ADGM and the management company which service charge rules apply.
What do service charges pay for?
Article 29 says service fees cover the expenses of managing, operating, maintaining and repairing the common parts and service facilities. The decision's definitions list what common parts can include: parks, green spaces, fountains, streets, sidewalks, lakes, swimming pools, playgrounds, squares, car parks, walkways and beaches. Under Article 34, the yearly budget covers management, maintenance and security, needed upgrades and major equipment, and must include a contribution to a reserve fund for emergencies and for replacing equipment.
Article 34 also lists what the budget may not include:
- fees from agreements that break the law or the decision
- public service fees imposed against the decision's rules
- any cost, direct or indirect, of recovering what major installations cost to build
- any cost of financing capital spending
Under Article 37, the management company must insure the common parts for enough to repair or rebuild them, and carry liability cover for owners, occupants and visitors; those premiums are part of the service fees.
Who sets the charges, and who approves them?
The developer appoints a management company accredited by ADREC within 30 days of handing over the first unit (Article 20), on an agreement of no more than three years unless ADREC agrees (Article 21). ADREC must approve that agreement, including the management company's fee.
The management company prepares the annual budget, and ADREC may approve it, reject it or ask for changes (Article 35). The owners' committee gets a full copy, and every owner gets one by email (Article 34). The committee cannot vote on the budget, but it can send ADREC reasoned recommendations; if ADREC accepts them, the management company has 14 days to make the changes or the budget can be rejected.
The rule that matters most to a buyer is Article 29(5): no service fees may be charged unless ADREC has approved them, after the DMT's approval. Fees charged without it "shall be illegal with no legal effect," may not be collected, and whoever paid them may get them back. Beyond the approved fees, neither the developer nor the management company may collect any other charge from owners, whatever it is called.
This is not new in spirit: in 2021 the DMT already required prior approval to set or raise service charges, Gulf News reported, and said it had approved 241 projects' budgets that year. Decision No. 25 now writes the rule, and its consequences, into one text.
How is your share worked out?
Each unit has a contribution percentage (Articles 6 and 7):
| Your unit | Its share |
|---|---|
| Inside a building | Its area against all the units' total area |
| A plot of land | Its land area against the whole plan's |
Your service fees follow that percentage (Article 29). It can be changed only through ADREC, at the request of at least two thirds of the owners, and the owners pay the expert ADREC appoints to review it. You cannot give up your share of the common parts to avoid paying.
A master community can also charge compound fees for its roads, parks and other shared facilities, on top of a building's service fees. Article 33 holds them to the same rule: without ADREC's prior approval they are unlawful and can be recovered.
How do you pay?
Annual service fees are paid in monthly or quarterly installments, and Article 30 says no owner may be forced to pay a full year at once. The management company must keep the fees in a bank account used only for them, and the reserve in a separate account that may be spent only with ADREC's approval, except in an emergency (Article 32). It reports to ADREC every six months (Article 23), and needs ADREC's prior approval for any supply or service contract whose cost feeds into the fees; such contracts may not earn the developer or the management company a private profit (Article 26).
Do you pay anything before handover?
No service fees, as a rule. Article 29 makes the developer responsible for every cost of the unit, service and compound fees included, until it is handed over to you, unless the developer proves you refused or delayed taking it for reasons beyond its control. The developer also pays the fees for every unsold unit.
Article 38 adds that a developer may not collect money for management or maintenance more than three months before it is to be spent. Within 30 days of appointing the management company, it must have an auditor check what it collected and spent, and pass any balance into the service fees account. Defects are the developer's cost too, under its legal guarantees, and may not be charged to owners.
If you buy off-plan, Article 42 says the developer must give you a signed disclosure statement before you sign, including a budget for the first two financial years after completion and an estimate of the service fees for your unit in those two years. If it does not, you may ask to end the contract. Keep that estimate: it is the nearest thing to a figure you can plan with before the first real budget exists. If you resell before handover, you must pass the statement to your buyer.
What happens if you do not pay?
Article 30 sets out the steps:
- The management company has an ADREC-accredited auditor confirm what you owe.
- It notifies you through a notary public, and you have 30 days to pay.
- If you do not, it asks ADREC for a document proving its right to the money. Unless you give ADREC an acceptable excuse, ADREC issues it, and it can be enforced like a court ruling.
- ADREC may then place a restriction on the property register, so you cannot sell the unit until you pay.
The management company also has a lien on the unit for unpaid fees, which stays with the unit when it is sold, and the new owner becomes responsible for fees from the date of transfer. So before you buy a resale home, ask for proof that its service fees are paid up.
How is this different from Dubai?
Both emirates require approved budgets and set your share by area, but the details differ. Dubai publishes approved rates in the Dubai Land Department's Service Charge Index, which anyone can search; we did not find an equivalent public index for Abu Dhabi, so ask the management company or the developer for the ADREC-approved budget. Our post on service charges in Dubai covers Dubai's rules.
What should you check before buying?
- Ask for the approved budget. For a finished building, ask the management company for the current budget ADREC approved and your unit's share of it.
- For off-plan, read the disclosure statement. Check the two-year service fee estimate and keep a copy.
- Ask about compound fees if the building is in a master community, and whether they are approved.
- Check who pays until handover. Your contract should match Article 29: the developer, until the unit is yours.
- On a resale, get a clearance showing no service fees are owed, since the debt passes with the unit.
- Add it to your costs. Our purchase cost calculator shows registration and other fees; add the yearly service fees to your budget, and to any rental yield you work out.
Browse off-plan projects across Abu Dhabi, including Yas Island and Saadiyat, or ask our AI advisor about a project's terms. Confirm the current figures with the management company, the developer or ADREC before you commit.