How much do service charges cut into rental returns in Dubai?

Service charges commonly run AED 10-30 per sq ft for apartments and AED 2-6 for villas, exceeding AED 60 in some luxury towers. They typically reduce net yield by 1-3 percentage points and can swallow 10-30% of gross rent. They also rise a few percent yearly, so a first-year estimate flatters your real long-term return.