If you’re wondering, “do I still pay service charges on an off-plan property during construction delay in Dubai?”, you’re not alone. Many investors and buyers face this question when development timelines shift. Here, we break down how service charges apply, your responsibilities, and your rights as a property buyer if your Dubai off-plan property encounters delays.
Understanding Service Charges in Dubai Off-Plan Properties
Service charges in Dubai typically cover the ongoing costs of maintaining the building’s common areas, amenities, and grounds. For off-plan properties—which are purchased before construction is complete—these fees are a critical consideration for investors looking to maximize long-term returns.
In Dubai, the developer is responsible for all service, maintenance, and management costs for an off-plan property until legal handover takes place. This includes maintenance, security, cleaning of common areas, and basic utilities for communal spaces. Once handover is complete and you receive your title deed, the obligation to pay service charges generally shifts to you as the property owner. These charges are regulated, calculated per square foot, and overseen by the Dubai Land Department to ensure transparency and fair practice across neighborhoods such as Jumeirah Village Circle (JVC), Business Bay, and Dubai South.
When Do Service Charges Typically Begin for Off-Plan Properties?
The obligation to pay service charges for a Dubai off-plan property normally starts on the official handover date. This moment is marked by the transfer of ownership from developer to buyer and the issuance of the title deed. Up to this point, the ongoing costs of managing the building remain the developer’s responsibility.
It’s important to note that some sales contracts may specify earlier responsibility for specific common area fees—especially if the buyer causes delays in finalizing payment or handover. However, standard practice across the city is that the buyer is not liable for service charges until completion and formal handover of the apartment or villa.
Construction Delays: Does This Affect Service Charge Payments?
Construction delays are not uncommon, with only about 62% of Dubai’s 2025 off-plan projects delivered within three months of the projected completion date. Reputable developers in prime areas still maintain a much higher on-time completion rate, but delays do happen.
During a construction delay, property owners are typically not required to pay service charges because they have not gained access or lived in the property. The responsibility for these operational costs—cleaning, utilities, maintenance—remains with the developer until legal handover is completed.
Practical Example: Delays and Service Charges
If, for example, your project in Dubai South or JVC is delayed by six months, standard market practice is that you will not owe service charges during those extra months, as you do not yet have the rights to occupy or let your unit. Only after final inspection, approval by authorities, and issuance of the title deed does your obligation to pay begin.
Navigating Your Contract: Key Clauses to Check Regarding Delays and Charges
Despite clear market standards, contracts can differ by developer, phase, or project. Carefully review your Sales and Purchase Agreement (SPA) for any provisions related to service charges, especially:
- The exact handover date triggering your service charge liability.
- Any force majeure or extension clauses related to delays.
- Obligations for partial or early occupation (such as phased handovers).
- Provisions in case of delays caused by the buyer, which could in rare cases trigger earlier service charge liability.
If you are unsure, consult a real estate advisor who specializes in the Dubai off-plan property sector. Knowing your contractual rights and responsibilities helps avoid unexpected costs and disputes.
Your Rights and Developer Obligations During Construction Delays
Dubai’s regulatory framework is robust, offering buyer protections in the face of project delays. As of 2025, if a developer delays delivery beyond six months after the contractually agreed completion date, buyers may be eligible for compensation up to 1% of the property value per quarter of delay. Developers retain responsibility for all maintenance and common area costs until lawful handover, and cannot transfer these costs to buyers prematurely.
If you face a request to pay service charges before legal handover—especially if the property remains unfinished or lacks necessary approvals—you are within your rights to question the demand.
What to Do if You’re Asked to Pay Service Charges During a Delay
If you receive a notice demanding service charge payment during a construction delay, take these steps:
- Review your SPA and note the official handover date and the specific trigger for service charge liability.
- Request a written statement from the developer clarifying the basis for their claim.
- Consult with a property lawyer or specialist familiar with the latest Dubai Land Department practices.
- If the demand appears unsupported, formally contest it in writing and notify Dubai’s Real Estate Regulatory Agency (RERA) if needed.
Seeking Legal Counsel and Dispute Resolution in Dubai
Dubai offers several avenues for dispute resolution through RERA and the Dubai Land Department. If negotiations with the developer don’t resolve the matter, buyers can file a formal complaint for improper service charge demands or breach of contract. Legal professionals specializing in Dubai property law can also mediate and provide guidance tailored to your unique project, neighborhood, and contract.
In summary, buyers do not pay service charges on an off-plan property in Dubai during a construction delay, as these costs remain the developer’s responsibility until handover. For further guidance and peace of mind, contact Danube Properties or your trusted Dubai real estate advisor.
