A Comprehensive Guide to the Cost of Living in Dubai (2024)

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 will likely be 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 article, we will take an in-depth look at the cost of living in Dubai, covering common expenses such as housing, food, transport, and education.

Housing Costs in Dubai

Housing costs in Dubai vary depending on various factors, including location, size and amenities. For example, the average rent for an apartment in Palm Jumeirah is AED 205,000 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 66,350. The overall annual average rent for different properties in Dubai is:

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. The security deposit 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 (+5% VAT).

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 100 

• 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.

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:

• DLD Fee 4% of the purchase price + AED 580

• Registration Fee for properties below  AED 500,000 AED 2000 + 5% VAT

• Registration Fee for properties above  AED 500,000 AED 4000 + 5% VAT

• 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:

Water

DEWA also regulates the water supply in Dubai. The cost of water usage is:

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 greatly impact your cost of living if you regularly eat out in restaurants and shop at upscale international supermarkets. But, 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 – 8

• Bread  AED 5 – 7

• Eggs (1 Dozen) AED 9 – 12

• Water (1.5 litres) AED 2 – 3

• Carbonated Drink  AED 2.50 – 4

• Chicken (1kg)  AED 25 – 40

• Beef (1 kg) AED 30 – 45

• Apples (1 kg) AED 8.50 – 15

• Bananas (1 kg) AED 7 – 10

• 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 widely depending on your preferences and choices.

• Fast Food (McDonald's, KFC, etc.) AED 30 - AED 50 per meal

• Casual Dining (mid-range restaurants) AED 100 - AED 250 per meal

• Fine Dining (High-end restaurants) AED 500 or above per meal

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.

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 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 1.97 per kilometre charge. So, for a journey of 10km, you should expect a fare of about AED 32.

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 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 2.80 

• Special 95 Price  AED 2.88

• Super 98 Price AED 2.99 

• Diesel Price AED 2.89 

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 100 to buy a Salik tag, but AED 50 of this is initial credit added to your account. It then costs AED 5.25 each time you pass through a toll gate.

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:

Specialty Consultation AED 550

General Practitioner Consultation AED 300

Dentist Consultation AED 350

The cost of medical treatment and medication vary accordingly.

Health Insurance

Health insurance packages vary in coverage and cost. The price for an individual typically ranges from AED 3,000 to AED 10,000 per year, and the cost for a family of four typically 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 employee's dependents, including a spouse and children.

Education Expenses

The cost of education in Dubai can vary significantly 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 curriculums, 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

High-end Schools in Dubai

Additional Fees And Expenses

• Application fee AED 500 - AED 2000

• Registration fee AED 500 – AED 4000 (usually adjusted in first term fee)

• Admission fee AED 500 – AED 4000

• Book Expenses  AED 800 – AED 2000 (usually covered in admission fee)

• Uniforms 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.

Theme and Water Parks

Dubai has several world-class water and theme parks.

• Legoland Dubai AED 330

• Motiongate Dubai AED 195

• IMG Worlds of Adventure AED 365

• Dubai Garden Glow AED 70

• Wild Wadi Water Park AED 215

• Atlantis Aquaventure Waterpark AED 320

Other Recreational Activities in Dubai

• Overnight Desert Safari AED 350

• Dubai Scuba Diving AED 249

• Quad Biking AED 200 - 600

• XLine Dubai Marina AED 650

• Hot Air Balloon Ride AED 675

• Skydiving AED 1,899 - 2,199

• Parasailing AED 300

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.

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 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 your bills monthly 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.

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.

The Average Cost Of Living In Dubai For 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. An estimate of expenses below can help you plan your family's finances.

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. By careful financial planning, Dubai can become not just a city you live in but a place where you can thrive and create lasting memories.