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Dubai is the top choice for expats looking to relocate, whether to start a business or find a job. If you are one of them, one of your primary concerns is the cost of living. Dubai has gained a reputation as a city where millionaires live in luxurious villas and drive supercars. But do you need to be super-rich to live in Dubai, or can you manage on a more modest income? In this comprehensive guide, we will look at the cost of living in Dubai, covering common expenses such as housing, food, transport, and education. So, let’s get started.
Housing Costs in Dubai
Housing costs in Dubai vary depending on location, size and amenities. For example, the average rent for an apartment in Palm Jumeirah is AED 220,000 annually (according to Property Monitor). This is almost 4x the average cost of renting an apartment in one of Dubai's more affordable communities, Jumeirah Village Circle, which is AED 75,000. The overall annual average rent for different properties in Dubai is:
Property Type
Budget (AED)
Mid (AED)
Luxury (AED)
Studio apartment
45,000-65,000
55,000-70,000
80,000-100,000+
1-bedroom apartment
50,000-70,000
75,000-110,000
130,000-270,000+
2-bedroom apartment
65,000-85,000
90,000-170,000
150,000- 300,000+
3-bedroom villa
90,000-115,000
110,000-170,000
200,000- 350,000+
4-bedroom villa
115,00-130,000
150,000-200,000
250,000-450,000+
Costs Associated with Rental Contracts
RERA (Real Estate Regulatory Agency) governs rental contracts in Dubai. Rental agreements usually last 12 months, although shorter-term rentals may be more expensive. Here's a general overview of the costs associated with renting a home in Dubai:
Security Deposit
The security deposit is 5% of the annual rent for an unfurnished property and 10% if the property is furnished. It is refundable at the end of the tenancy, subject to deductions for any damages.
Agency Fees
When renting a property, you should expect to pay an agency fee of 5% of the annual rent.
Ejari Registration
Ejari is an online registration system introduced by the RERA to regulate rental contracts. All rental contracts must be registered with Ejari. The fees are:
Registration Fee: AED 155 through online registration and AED 219.75 through the real estate services trustees centres
Knowledge fee: AED 10
Innovation Fee: AED 10
DEWA Connection
DEWA provides electricity and water services in Dubai. At the start of your tenancy, you will be required to pay a refundable security deposit, which varies depending on the type of property:
Apartments: AED 2,000
Villas and Townhouses: AED 4,000
The activation charges are:
Small metre connection: AED 100
Large metre connection: AED 300
Registration fee: AED 10
Knowledge fee: AED 10
Innovation fee: AED 10
Municipality Tax
Dubai Municipality imposes a municipality tax, also known as the housing fee, on the annual rent of residential properties. This fee is paid annually and is usually included in the tenant's DEWA utility bill. This tax is equivalent to 5% of the property's annual rent.
Chiller Fees
Chiller fees are applicable in certain Dubai residential properties where central air conditioning is shared among the tenants. These fees cover the cost of cooling the property and are based on the size of the unit. Empower and Emicol are the providers of cooling services in Dubai.
Costs Of Buying A Property In Dubai
Here's a look at the cost of buying a property in Dubai, depending on whether you choose a budget, mid or luxury option.
Property Type
Budget (AED)
Mid (AED)
Luxury (AED)
Studio apartment
45,000-65,000
55,000-70,000
80,000-100,000+
1-bedroom apartment
50,000-70,000
75,000-110,000
130,000-270,000+
2-bedroom apartment
65,000-85,000
90,000-170,000
150,000- 300,000+
3-bedroom villa
90,000-115,000
110,000-170,000
200,000- 350,000+
4-bedroom villa
115,00-130,000
150,000-200,000
250,000-450,000+
There are several additional costs which you should consider when buying a property in Dubai.
Government Fees
All property sales transactions must be registered with the Dubai Land Department (DLD). This will incur the following fees:
Mortgage Registration Fee (if bought using a mortgage): 0.25% of the loan amount + AED 290
Agency Fees
The agency fee is usually 2% (plus VAT) of the purchase price.
Conveyancing Fees
A conveyancer ensures you don't encounter any issues during the purchase and costs from AED 5,000 to AED 10,000.
Cost Of Utilities In Dubai
Utilities are another major ongoing expense that should be factored into your cost of living estimates. Here is the cost breakdown for common utilities in Dubai:
Electricity
The Dubai Electricity and Water Authority (DEWA) provides electricity to residents. The different tariffs depending on the usage are:
Consumption (kWh/month)
Tariff (AED/kWh)
Up to 2,000
0.230
2,000-4,000
0.280
4,000-6,000
0.320
Above 6,000
0.380
Water
DEWA also regulates the water supply in Dubai. The cost of water usage is:
Consumption (AED/m³)/ month
Slab tariff (AED/m³)
0-27
7.700
27 - 54
8.800
54 - Above
10.120
TV, Internet and Telecommunication
The average cost for these utilities is:
TV and Internet: AED 250 – AED 1000 per month
Mobile Plans: AED 125 - AED 500+ per month
Cost of Food in Dubai
Food in Dubai can seem expensive, but it massively depends on your choices. Food can impact your cost of living if you regularly eat out in restaurants and shop at upscale international supermarkets. However, it is possible to live affordably by regularly eating at home and avoiding expensive imported foods.
Groceries
If you shop at local markets and grocery stores, basic groceries like bread, rice, vegetables, and fruits can be reasonably priced. However, international brands like Carrefour, Spinneys, Lulu Hypermarket, and Choithrams dominate the market. Imported and speciality items can be more expensive in these chains. Here are some approximate price ranges for groceries at the time of writing:
Milk (1 litre) AED 6.5 – 8.5
Bread AED 5 – 7
Eggs (1 Dozen) AED 9 – 12
Water (1.5 litres) AED 2 – 5
Carbonated Drink AED 2.50 – 5
Chicken (1kg) AED 35 – 60
Beef (1 kg) AED 30 – 50
Apples (1 kg) AED 8.50 – 15
Bananas (1 kg) AED 8 – 12
Onion (1 kg) AED 4 – 7
Tomato (1 kg) AED 6 – 8
Potato ( 1 kg) AED 4 – 6
Dining Out
Dubai offers a wide range of dining options. Your dine-out expenses will vary depending on your preferences and choices. Below is an average meal cost for different dining options:
Fast Food (McDonald's, KFC, etc.): AED 30 - AED 50 per meal
Casual Dining (mid-range restaurants): AED 100 - AED 250 for two persons
Fine Dining (High-end restaurants): AED 500 or above per meal for two persons
Transport Costs In Dubai
Dubai has a well-developed public transportation system comprising the Dubai Metro and public buses.
The Dubai Metro
The Dubai Metro, one of the world's most efficient and modern metro systems, is a key component of Dubai's transport infrastructure. It consists of two lines - the Red Line and the Green Line and covers a vast network that connects various parts of the city. To ride the Dubai Metro, passengers must obtain an NOL card, an electronic smart card used for fare payment across various modes of public transportation in Dubai.
Dubai is divided into multiple zones, and the Dubai Metro fare structure is based on the number of zones crossed during a single journey.
Ticket Type
1 Zone or <3km 2 zones
2 Zones
3+ Zones
Standard Adult Ticket (Red)
AED 4
AED 6
AED 8.50
Pre-paid Standard Adult Ticket (Silver Nol)
AED 3
AED 5
AED 7.50
Concessionary (Blue Nol Card)
AED 1.50
AED 2.50
AED 3.75
Gold Class (Red Ticket)
AED 8
AED 12
AED 17
Gold Class Pre-Paid
AED 6
AED 10
AED 15
Public Buses
Buses operate at regular intervals and are equipped with modern amenities to enhance passengers' comfort during their journeys. Like the Dubai Metro, public bus fares are calculated based on the number of zones crossed during the trip.
Note: Nol cards must be valid and have a minimum credit of AED 7.50 to travel on the Metro and the bus.
Taxis
You can find taxis at designated taxi stands, shopping malls, and hotels, and even hail them directly from the streets. You can also use apps like Careem to book taxis from your phone. The initial fare for Dubai taxis is AED 12 with an additional AED 2.19 per kilometre charge. An airport taxi has a base fare of AED 25.
Personal Car
Almost all major global car brands are available in Dubai, and dealers typically offer the option to buy in cash or use finance. Owning a car in Dubai comes with the following expenses.
Registration Cost
To legally operate your car in Dubai, register it with the Dubai Roads and Transport Authority (RTA). Registering a car in Dubai costs AED 420. Other expenses include:
Ownership transfer fee: AED 350
Inspection fee: AED 120 - 170
Registration renewal fee: AED 380
Knowledge fee: AED 10
Innovation fee: AED 10
Car Insurance
Car insurance costs around 1.25% to 3% of the car value per year.
Fuel Cost
Fuel prices in Dubai are less expensive than in many other countries. The cost of fuel varies, but at the time of writing, it is as follows:
EPlus 91 Price: AED 2.54
Special 95 Price: AED 2.61
Super 98 Price: AED 2.73
Diesel Price: AED 2.77
These prices change every month.
Maintenance and Service Costs
Car Wash
AED 20 - AED 60
Car Service
AED 350 – AED 500
Oil Change
AED 80 – AED 100
Parking fee
AED 2 – AED 20 per hour
Salik Cost
You must purchase a Salik tag (available from petrol stations) and register it to your car before passing through a toll gate. It costs AED 120 to buy a Salik tag online, but AED 50 of this is an initial credit added to your account. It then costs AED 4 each time you pass through a toll gate.
On regular days, peak hours (6:00 AM – 10:00 AM and 4:00 PM – 8:00 PM) have a charge of AED 6 per crossing, while off-peak hours (10:00 AM – 4:00 PM and 8:00 PM – 1:00 AM) cost AED 4 per crossing. Late night hours (1:00 AM – 6:00 AM) are free. On Sundays, excluding public holidays and special events, a flat rate of AED 4 applies throughout the day, except during late-night hours, which are free. During Ramadan, the peak hours are from 9:00 AM to 5:00 PM at AED 6 per crossing, and off-peak hours are from 7:00 AM to 9:00 AM and 5:00 PM to 2:00 AM at AED 4 per crossing. Late-night hours, from 2:00 AM to 7:00 AM, are free.
Healthcare Costs
The Dubai Health Authority (DHA) governs and regulates healthcare facilities in the emirate. Public healthcare services in Dubai offer subsidised healthcare services to Emiratis and expatriate residents. On the other hand, private healthcare facilities in Dubai provide a range of specialised services and treatments. While private treatments may come at a higher price, patients can expect high-quality care and personalised attention. On average, consultation fees at private healthcare facilities are as follows:
Speciality Consultation: AED 550
General Practitioner Consultation: AED 300
Dentist Consultation: AED 350
The cost of medical treatment and medication varies accordingly.
Health Insurance
Health insurance packages vary in coverage and cost. The price for an individual ranges from AED 3,000 to AED 10,000 per year, and the cost for a family of four ranges from AED 15,000 to AED 40,000 per year.
Companies must provide health insurance to their employees as soon as their work visa is issued. It is a legal requirement for all employers to offer employees a minimum level of healthcare without deducting a premium from them or taking it from their salary. Some employers may also offer health insurance coverage to their employees' dependents, including spouses and children.
Education Expenses
The cost of education in Dubai can vary depending on the type of school, the level of education (e.g., primary, secondary, or higher education), and the curriculum offered. There are three main types of schools:
Public Schools
Public schools in Dubai are government-funded and provide education to UAE nationals for free or at a heavily subsidised cost. These schools follow the Ministry of Education's curriculum, which is taught in Arabic.
Private Schools
Private schools in Dubai are independent institutions catering to Emirati and expatriate students. They offer various curricula, such as British, American, Indian, and International Baccalaureate (IB).
International Schools
International schools cater mainly to expatriate students, offering British, American, and International Baccalaureate (IB) curriculums. International schools focus on equipping students with the skills needed for a globalised world. The tuition fees in these schools tend to be higher than public and private schools.
Affordable Schools in Dubai
School
Fee (Yearly)
The Elite English School
AED 5,534 – AED 12,000 (KG to Year 12)
Al Ittihad Private School
AED 22,650 – AED 42,000 (KG to Year 12)
Mirdif American School
AED 27,194 – AED 40,585 (KG to Year 8)
Dubai National School
AED 23,617 – AED 38,754 (KG to Year 12)
The City School International
AED 16,362 – AED 38,164 (FS 1 to Year 13)
High-end Schools in Dubai
School
Fee (Yearly)
GEMS Wellington International School
AED 46,000 – AED 101,525 (FS-1 to year 13)
GEMS Modern Academy
AED 30,000 – AED 72,000 (KG to year 12)
Dwight School Dubai
AED 63,622 – AED 108,212 (KG to year 12)
Repton School Dubai
AED 55,865 – AED 100,394 (FS-1 to year 13)
Nord Anglia International School (NAS)
AED 68,026 – AED 102,871 (FS-1 to year 13)
Additional Fees And Expenses
Application fee: AED 500 - AED 2000
Registration fee: AED 500 – AED 4000 (usually adjusted in the first term fee)
Admission fee: AED 500 – AED 4000
Book Expenses: AED 800 – AED 2000 (usually covered in admission fee)
Uniform cost: AED 250 - AED 600
Van charges: AED 3000 – AED 5000 (annually)
Entertainment and Recreation
Dubai offers an array of entertainment and recreational options for residents and tourists. Here are some popular entertainment options, along with their costs:
Movies
Tickets to standard screenings at mainstream cinema chains such as Vox Cinemas and Reel Cinemas cost around AED 42 - AED 60 per person. For a more luxurious experience, 3D, IMAX and outdoor cinemas may cost around AED 80 – AED 160 per person.
Atlantis Aquaventure Waterpark: AED 365 for children and AED 415 for adults
Other Recreational Activities in Dubai
Overnight Desert Safari: Starting from AED 230
Dubai Scuba Diving: From AED 299
Quad Biking: AED 200 - 600
XLine Dubai Marina: Starting from AED 498
Hot Air Balloon Ride: AED 800
Skydiving: AED 2,199 - 2,749
Personal Care Expenses
Haircuts
The cost of a standard haircut at a salon in Dubai can range from AED 50 to AED 200 or more, depending on the salon's location and reputation. Some salons may also cost around AED 20.
Spa
Spa packages can be tailored to your preferences. You can find options ranging from AED 200 to several thousand AED for premium spa experiences.
Facials
A facial at a spa or salon can cost AED 150 to AED 500 or more, depending on the facial and the facility.
Gym Memberships
Monthly gym memberships typically range from AED 200 to AED 800 or more per month.
Saving and Budgeting Tips
Managing finances can be challenging, especially in a city like Dubai, where the cost of living is high. Here are practical tips for managing finances in Dubai:
List all your monthly bills, such as rent, utilities, transportation, and groceries. Categorise your expenses to get a better overview and identify areas where you can cut back.
Set aside funds for savings and emergencies, and ensure your expenses do not exceed your income.
Consider shopping during the discount seasons or taking advantage of special offers and promotions.
Use credit cards for necessary expenses and pay monthly bills to avoid costly interest charges.
Before making an expensive purchase, take some time to evaluate if it aligns with your budget and financial goals.
The Average Cost Of Living In Dubai For Singles
If you are considering living in Dubai as a single person, knowing how much money you might need for your monthly or yearly expenses is essential. Below is an estimate of the average monthly and annual rent, utilities, groceries, entertainment, and transportation costs.
Expense
Cost Per Month (AED)
Cost Per Year (AED)
Rent
2,500 - 4,500
30,000 - 54,000
Utilities
700 - 1,000
8,400 - 12,000
Food
1,000 - 2,000
8,400 - 24,000
Entertainment
650 - 1,500
7,800 - 18,000
Transport
350 - 2,000
4,200 - 24,000
Total
5,200 - 11,000
62,400 - 132,000
The Average Cost Of Living In Dubai For Couples
Planning a life together in Dubai as a couple can be exciting, but it's essential to understand the financial aspects. The table below provides a rough estimate of the average monthly and yearly costs for couples living in Dubai.
Expense
Cost Per Month (AED)
Cost Per Year (AED)
Rent
4,000 - 8,500
48,000 - 102,000
Utilities
900 - 1,300
10,800 - 15,600
Food
1,700 - 3,000
20,400 - 36,000
Entertainment
1,200 - 3,000
14,400 - 36,000
Transport
700 - 4,000
8,400 - 48,000
Total
8,500 - 19,800
102,000 - 237,600
The Average Cost Of Living In Dubai For a Family of Four
Before moving to Dubai with your family, it's essential to understand how much money you might need to make your family comfortable and happy. The estimate of expenses below can help you plan your family's finances.
Expense
Cost Per Month (AED)
Cost Per Year (AED)
Rent
6,000 - 12,000
72,000 - 144,000
Utilities
2,000 - 3,000
24,000 - 36,000
Food
2,500 - 4,000
30,000 - 48,000
Entertainment
2,000 - 3,000
24,000 - 36,000
Transport
1,200 - 4,000
14,400 - 48,000
Education
5,000 - 12,000
60,000 - 144,000
Total
18,700 - 38,000
224,400 - 456,000
Conclusion
Understanding the cost of living in Dubai is crucial for anyone looking to relocate or considering an extended stay in this city. It is worth noting that while Dubai may have higher living costs than other cities, it also offers unmatched, unique experiences and opportunities. We have covered the key cost factors contributing to Dubai's overall expenses. Whether it is rent, utilities, groceries, entertainment, healthcare or transportation costs, Dubai offers a range of lifestyle choices to suit different budgets. Through careful financial planning, Dubai can become not just a city you live in but a place where you can thrive and create lasting memories.
Looking to make Dubai your home? Contact us today for personalised guidance and find your dream home in one of the world’s most luxurious cities!
Dubai can be expensive, especially regarding rent and property prices. The city offers a high standard of living, which can lead to higher expenses for things like food, groceries, utilities, and transportation.
What salary do I need to live in Dubai?
To live comfortably in Dubai, it is recommended that you have a salary between AED 15,000 and AED 25,000 per month. This should cover rent, utilities, daily expenses, and some extras while allowing for savings. However, the exact amount you will need depends on your lifestyle, family size, and where you live.
What are the best areas to live in Dubai?
Some of the best areas to live in Dubai are Downtown Dubai and Dubai Marina.. For families, areas like Arabian Ranches and The Greens offer spacious homes and a more relaxed environment. If you prefer beach access and an upscale lifestyle, places like Palm Jumeirah and Jumeirah Beach Residence (JBR) are ideal.
How to live cheaply in Dubai?
To live cheaply in Dubai, focus on finding affordable housing, using public transport, cooking meals, and saving energy. Look for areas like International City, Al Nahda, or Mirdif for lower rent. Use the metro, bus, and tram for transportation, and shop at local markets for cheaper groceries. Save electricity using energy-efficient appliances and turn off lights and A/C when unnecessary.
How much does it cost to live in Dubai with a family?
Living in Dubai with a family can be expensive. A monthly budget between AED 20,000 and AED 35,000 usually covers rent, groceries, transport, and daily needs.
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