Dubai is a land of opportunities and economic emancipation for many global residents. It offers the finer side of life due to its modern infrastructure and advanced transition into the future. Located strategically at a critical junction between the East and the West, Dubai is a hub of commerce, trade, and business. You can find headquarters or regional offices of almost all leading companies here. Such reasons pull several people to Dubai’s shore each year, some for employment, others for business, and many looking to make a fresh start in a new place. Before one’s move, it’s wise to have a realistic idea about the cost of living in Dubai. Knowing what to expect will help you better manage your budget and avoid unpleasant surprises.
Dubai may be cheaper than its pricier counterparts like London, New York, and Hong Kong. Yet its cost of living is still on the pricier side. That doesn’t go to say that Dubai is not a fantastic place to relocate to. It just means you should do your homework well before your physical move here. Our blog is going to help you with just that. Read on as we break down Dubai’s overall cost of living into essential and additional expenses.
Essential Costs
Essential costs are upfront and absolutely necessary for survival and thus, a prime consideration when assessing the cost of living in Dubai. These costs will also contribute towards your significant living expenditure in Dubai. Essential costs can be broken down into the following expenses:
- Housing
- Utilities
- Groceries
- Healthcare
- Transport
Additional Costs
All other costs associated with your stay in Dubai come under additional expenses. There is no limit to how much you can increase your cost of living. And in a city like Dubai, which offers its residents an abundance of entertainment, leisure, and recreational choices, the options are limitless.
Yet we’ve attempted to club together a few expenditures that, though not essential, are common and will affect your cost of living in Dubai. These are:
- Leisure and entertainment
- Clothes and Personal Care
- Schooling/Child Care
We’ve provided an item-wise breakdown of prices for each category. Please note that prices are fluid and subject to change depending on time and market conditions.
Housing
The minute you land in Dubai, you need a roof over your head and a place to live in. Your house is your shelter and the first significant expense you should be prepared to make. Fortunately, Dubai has numerous housing options that fit all types of budgets and lifestyles. There are many choices, from studios to apartments and townhouses, from villas to grand mansions.
Remember that your housing expense entirely depends on where you live in the city, downtown or outside, and the size of your accommodation. Find an approximate monthly rental cost for each type of housing below.
Further, these prices stand true at the time this is being written.
|
Accommodation Type |
Monthly Rental Cost |
|
Studio, furnished, in the city center |
AED 5,332 |
|
Studio, furnished, outside city center |
AED 3,192 |
|
1 bed apartment, in city center |
AED 7,084 |
|
1 bed apartment, outside city center |
AED 4,006 |
| 2 bed apartment/townhouse in city center |
AED 8,385 |
|
2 bed apartment/townhouse in city center |
AED 5,804 |
| 3 bed apartment, in city center
|
AED 12. 365
|
|
3 bed apartment, outside city center |
AED 7,512
|
Utilities
Once you find housing, your next step should be to arrange for utilities. Basic utilities include electricity, water, heating and cooling, and garbage disposal. Besides the basics, you might require television and internet access and a mobile phone connection.
Find a breakdown of costs for each of these below.
|
Utility |
Monthly Cost |
|
Basic (water, electricity, heating, cooling, garbage) for a 2 bed apartment |
AED 729 |
|
Basic (water, electricity, heating, cooling, garbage) for a studio |
AED 503 |
|
Internet 8 Mbps and TV cable |
AED 389 |
|
Prepaid mobile tariff local |
AED 0.54 per minute |
|
Basic postpaid mobile |
AED 125 |
Groceries
Next to shelter, sustenance is perhaps the most important thing for survival and well-being. Dubai is a multicultural city and is home to a range of nationalities. Hence, plenty of grocery items are available here to cater to various menus and palettes.
Expect groceries and food items to be your regular or weekly expenditure, and a fair idea of the cost will help you transition better.
Find below a price breakdown of some basic and essential groceries and food items in Dubai.
|
Item |
Cost |
|
Milk, 1 Litre |
AED 7 |
|
Eggs, dozen |
AED 15 |
|
Cheese |
AED 28 |
|
Bread, 1 loaf |
AED 3.89 |
|
Chicken, whole |
AED 16 |
|
Tomatoes, 1 Kg |
AED 5.30 |
|
Potatoes, 1 Kg |
AED 4.39 |
|
Apples, 1 Kg |
AED 8 |
|
Bananas, dozen |
AED 7 |
|
Rice, 1 Kg |
AED 7.47 |
|
Onion, 1 Kg |
AED 3.5 |
|
Lettuce |
AED 6 |
|
Water bottle, 1.5 Litre |
AED 3.25 |
|
Bottle of wine |
AED 60 |
|
Domestic beer, 0.5 Litre |
AED 14 |
|
Imported beer, 0.5 |
AED 25 |
|
Cigarettes, Marlboro, 1 pack |
AED 23 |
Healthcare
Purchasing healthcare is mandatory for all residents of the UAE. It is a cost you cannot avoid. Rather it is for your own and your family’s benefit and security. In many cases, especially if you relocate to Dubai for work, your employer will sponsor your healthcare. If not, you’re responsible for purchasing a health coverage plan for yourself and your family.
Dubai is world-renowned for having some of the best medical facilities. There are different insurance plans available. The costs of these vary depending on the coverage. As an estimate, the yearly cost of an essential benefits plan starts at AED 600. In contrast, a comprehensive coverage plan for one individual goes up to AED 5,500 annually.
Schooling
If you’re moving to Dubai with children, then childcare or schooling will be one of your basic expenditures – and a major one. Dubai has a variety of top-quality schools that offer different curriculum choices, such as British, American, IB, and Indian. Yet the monthly fee of these international schools is high compared to the local schools.
Your child’s monthly school fee will vary depending on their grade, kindergarten, primary, or senior. It will also include other additional costs besides the tuition fee. These include uniforms, textbooks, notebooks, stationery, exam fees, and school trips.
Typically, international school monthly fee ranges from AED 4500 to AED 10,000. Indian schools are comparatively cheaper. Monthly fee for these ranges between AED 3000 to AED 5,500.
Daycare or kindergarten fees will apply to families with younger children. Daycares are generally private and full-day centers—the fee for these starts at AED 2,810 per month.
Transport
Getting around is another substantial expense to consider when relocating to Dubai. You have plenty of options, from owning your private car to using the Metro, taxi service, or bus. Your choice of transport will primarily be dictated by your home and work location and the kind of access you have. Whether the area you live in has a taxi or metro stop nearby or can only be reached by a private car will determine your transport expenditure.
Your daily route, budget, and lifestyle choices all affect the type of transport you choose to keep in Dubai and impact your monthly living cost.
Find below a table of the cost breakdown for different transport options in Dubai.
|
Transport Type |
Cost |
|
Public transport, monthly pass |
AED 295 – AED 300 |
|
Taxi trip (8km) |
AED 42 |
|
Honda Civic 2023 |
AED 124,900 |
|
Kia Picanto |
AED 43,000 |
|
Volkswagon Golf |
AED 94,044 |
|
Ford Bronco |
AED 214,995 |
|
Toyota Yaris |
From AED 61,900 |
|
Toyota Land Cruiser |
AED 297,900 |
|
Nissan Maxima |
AED 129,500 |
|
Gasoline 1 Litre |
AED 3. 54 |
Entertainment, Recreation, and Leisure
Although considered a non-essential or additional cost, entertainment and leisure activities are essential in creating that work-life balance. These allow you to refresh, recharge, and enjoy a wholesome life in Dubai. Further, Dubai is a truly cosmopolitan world city with an energetic and thriving entertainment sector with an array of events and activities happening all the time.
Refer to the table below for an approximate idea of the cost of some common entertainment options.
|
Option |
Cost |
|
Dinner for two at a fancy restaurant |
Starting at AED 300 |
|
Inexpensive meal for one |
AED 40-50 |
|
Movie ticket for 1 |
AED 47 |
|
Theatre tickets for 2 |
AED 292 |
|
Cocktail drink |
AED 94 |
|
Cappucino |
AED 24 |
|
Gym membership per month for 1 |
AED 270 – AED 345 |
Clothes, Shoes, and Personal Care
Once you settle into your new life in Dubai, you’ll quickly realize whatever clothing and personal care items you had brought with you from your home country are not enough or maybe need replacement.
Buying personal items is a necessary expense that can be hiked or controlled based on your requirements and lifestyle. We attempt to provide a broader price breakdown of some everyday personal items.
|
Item |
Price |
|
1 pair of jeans from a highstreet store |
AED 243 |
|
1 dress from a high street store |
AED 202 |
|
1 pair of sports shoes |
AED 333 |
|
Off the counter medicines |
AED 25 |
|
Antibiotics |
AED 41 |
|
Tampons |
AED 20 |
|
Deodorant |
AED 16 |
|
Shampoo |
AED 20 |
| Toilet Paper pack |
AED 16 |
|
Salon in city center |
AED 45+ |
Wrap Up
Ready to move to Dubai? The Emirati city is a fantastic location to relocate to, with its stable economy, relaxed taxation, modern infrastructure, safety, and world-standard healthcare. It is also a cheaper place to live compared to London, New York, and Paris. Yet, a general idea about its cost of living will help you adjust more smoothly to life here and enable you to plan your budget effectively.
We’ve attempted to provide you with a breakdown of the costs of some of the essential and extra expenditures that will help you during your time here. However, these prices are fluid and subject to change according to the market situation.
For more information on Dubai living and housing, get in touch with us today.
