The city of Dubai attracts people from all over the world with its vibrant lifestyle and state-of-the-art infrastructure. People leave the comfort of their home countries and take the leap to join the opportunity-rich emirate, enticed by tax-free salaries and the Dubai city lifestyle. What people may not be considering or often underestimate is the average cost of living in Dubai. While cutting back on shopping and other expenses may make a difference in managing your budget, it is still very important to know a realistic estimate of what residents are spending to enjoy a fulfilling Dubai life,
Housing Costs in Dubai
Housing is the largest expense for most residents. Dubai offers a range of accommodation options, from high-end homes in areas like Downtown Dubai and Palm Jumeirah to more affordable housing in places like International City and Al Nahda.
- Luxury Apartments: A one-bedroom apartment in areas like Downtown Dubai or Dubai Marina can cost between AED 8,000 to AED 12,000 per month.
- Mid-Range Housing: Areas like Jumeirah Village Circle (JVC) and Al Barsha offer one-bedroom apartments for AED 4,000 to AED 7,000 per month.
- Budget-Friendly Options: In areas like Deira or International City, one-bedroom apartments range from AED 2,500 to AED 4,000 per month.
For young professionals and expatriates, there is also the option of renting a room or sharing an apartment with others, a commonly practiced living arrangement to reduce spending. For those looking to purchase property, Dubai’s real estate market has seen fluctuations (as all real estate markets do), but it remains an attractive investment option due to its high rental yields and tax-free benefits. There are financing options, as well as final-phase off-plan properties Additionally, investing 2 million or more in UAE property leads to eligibility for the Golden Visa, which provides long-term residency.
Utilities and Internet
Utilities, including electricity, water, and cooling, are provided by the Dubai Electricity and Water Authority (DEWA). On average, utility costs range from AED 500 to AED 1,500 per month, depending on the size of the apartment and consumption. Internet and mobile plans are also essential expenses, with broadband plans starting from AED 300 per month.
A good way to work around these expenses is to hunt for an all-inclusive apartment. These are typically furnished, which may not be favorable to some, but they simplify bills as they usually charge a slightly higher-than-average rent that would include electricity, water, as well as wifi. It’s important to do your math, compare and contrast to find the most budget-friendly option for yourself.
Transportation Expenses
While Dubai’s public transportation system is well-developed, many residents prefer private vehicles to avoid walking between stations, waiting between buses, or having to pay for taxis to destinations that aren’t accessible by metro or bus.
- Metro and Public Transport: A monthly pass for public transport starts at AED 140, and can go up to AED 300 depending on how many zones you travel.
- Cars: Petrol prices are relatively low compared to global standards, and purchasing a car can range from AED 30,000 for a small sedan to AED 200,000+ for luxury brands.
- Taxi Services: Ridesharing services like Uber and Careem are commonly used, with fares varying depending on distance and time, as well as the standard taxi which is abundantly available across the city.
Food and Dining
Food expenses can be hard to measure, as everyone has a different appetite and preference. Some prefer home-cooked meals, while others opt for dining out several times a week. By comparison, cooking at home can save a significant amount as opposed to regularly dining out.
- Groceries: Monthly grocery bills for a family of four roughly range from AED 2,000 to AED 3,500.
- Dining Out: Mid-range restaurants charge around AED 50-100 per meal, while fine dining options can go well beyond AED 500 per person.
Healthcare and Insurance
Healthcare in Dubai is of high quality but can be expensive without insurance. Employers are required to provide health insurance to their employees, but private insurance for dependents can start as low as AED 600 for lower-range insurance, with mid-range starting from AED 3000 and reaching up to AED 15,000 annually.
Education Costs
For expatriate families, school fees form a significant portion of expenses. While the right schools can be costly here in the UAE, a good education is highly valuable to the children’s growth and future. Private international schools charge between AED 20,000 to AED 100,000 per year, depending on the curriculum and reputation of the school. You should also keep in mind additional fees if they will be taking a school bus, as well as fees for books, uniforms, extracurricular activities, and trips.
Entertainment and Leisure
The entertainment scene in Dubai is simply irresistible, with the city being one of the most famous vacation destinations. Dubai offers a range of entertainment options, from beach clubs and theme parks to concerts and a vibrant nightlife scene. While not everyone may indulge in entertainment as heavily, it’s still beneficial to properly budget for it so you can enjoy your recreational activities without any financial stress. There are also wellness and self-care factors to consider depending on what you find necessary to your lifestyle, such as gym memberships.
- Gym Membership: AED 100 to AED 800 per month
- Cinema Tickets: AED 35 to AED 50 per ticket
- Theme Parks and Attractions: Prices range from AED 200 to AED 400 per visit
The Dubai Gold Visa Benefits
One of the major financial advantages of living in Dubai is the availability of the Dubai Gold Visa, a long-term residency program aimed at investors, entrepreneurs, skilled professionals, and exemplary students. Key benefits include:
- Residency Stability: Holders of the Gold Visa can reside in Dubai for 10 years without the need for frequent renewals.
- Business and Investment Opportunities: Investors benefit from business-friendly regulations and access to lucrative industries.
- Family Sponsorship: Visa holders can sponsor their immediate family members.
- Ease of Travel: The visa allows easier entry and exit without continuous renewals.
The cost of living in Dubai varies widely based on lifestyle choices. While living modestly on a smaller salary is possible, a more comfortable lifestyle may require something better. Understanding the expenses involved helps expatriates and potential residents make informed financial decisions and take full advantage of their opportunities.
Written by: Samah ElBashir