The Average Cost of Living in Dubai
Dubai has clearly established itself as the ultimate cosmopolitan city, becoming the face of the Middle East to the world. Its unparalleled growth has been one that is studied by economists. The sheer dedication and relentless pursuit that the city has shown to excel is nothing short of extraordinary. This is reflected in it being a top choice for settling down for millions of people worldwide; which brings us to the question of the cost of living in Dubai.
The booming real estate market of Dubai is a testimony of its unprecedented development, which has led to it being a sought-after destination to work and live in. If you are considering moving into this city, then you need a proper budgetary plan. This is where we come to your aid.
In this space, we are going to get a deeper understanding of the expenses you need to bear while living in Dubai. We will break down each major pillar of expenses – housing, grocery, education, healthcare, and entertainment, among others. Additionally, we are also going to help you figure out ways to cut down your costs and live a more financially manageable life.
About Dubai
Dubai is a leading example of sheer determination and the undisputed attempt to better oneself. The city has constantly evolved itself and in today’s age can give any other city a run for its money in terms of development. The booming economy of the city is evident through its foreign investment in real estate. A top choice for numerous people across the world to live in, it is the dream urban city.
With an area of 4,114 sq. km., it is the second-largest emirate of the UAE and comprises 5% of the nation excluding the islands. Situated on the east coast of the Arabian peninsula, the discovery of oil in Dubai in the 1960s dramatically changed the history and economy of the city and put it in the spotlight, gaining significant traction and attention from the world.
The scenic beauty, modern architecture, shopping avenues, low crime rate, relaxed taxation policies, along with quick access to urban amenities make Dubai a highly sought-after city to live in. It continues to excel and strive for better and offers unprecedented opportunities to its residents for a chance to a better life.
Types of Expenses to Bear While Living in Dubai
The richness of Dubai emerges from the culmination of a bunch of factors including its real estate and tourism dominance along with it being a formidable global financial force. To manage your finances properly, you need to practice caution. Having a thorough idea of the expenses you need to bear will help you plan your budget more pragmatically.
In the following subcategories, we have tried to come up with the average living cost in Dubai. Please make sure to remember that the figures we are going to mention are mere average estimations and they are subject to change. So, plan accordingly.
Housing
Evident from the thriving real estate domination of the city, it is no surprise that some of the leading property developers have made their presence be felt in Dubai with their residential establishments. From extravagant villas to cozy apartments, from splendid penthouses to luxurious townhouses, there is no dearth of choices of residential properties in the city.
In this specific discussion, we are going to focus on rental residential options, since that is predominantly a more affordable option for most people moving into the city for the first time. A good portion of your monthly expenses will go down in housing rents.
Apart from the type of property you rent, the location of your housing will also dictate the pricing. The established neighborhoods in areas such as Downtown Dubai, Dubai Marina, and Al Barsha will demand a much steeper price than their more affordable counterparts in suburban neighborhoods in areas such as Deira, Dubai Silicon Oasis, and International City. This chart will give you an idea of the average rent in Dubai.
| Type of Residential Unit | Estimated Monthly Rent |
| Studio Apartment | AED 3,000-6,000 |
| 1-Bedroom Apartment | AED 4,000-7,500 |
| 2-Bedroom Apartment | AED 6,000-9,000 |
| 3-Bedroom Apartment | AED 7,000-11,000 |
| Penthouse | AED 14,000-20,000 |
| Townhouse | AED 16,000-22,000 |
| Villa | AED 15,000-27,500 |
| Shared Accommodation | AED 2,000-4,000 |
Grocery and Food
Next to housing, your biggest concern will be the monthly grocery and food expenses. Your lifestyle and preferences will heavily dictate the cost here. If you are someone who is relying on dining out and food delivery services more, then your expenses will be significantly more than someone who is cooking at home.
Grocery shopping at premium retailers and regularly purchasing imported food items will elevate your bills. However, if you stick to more affordable supermarket options, then your expenses will be more manageable.
Since the city has a global population, it will not be difficult for you to procure international food ingredients from supermarkets. The same is reflected in the dining scene as well. Top-notch restaurants and food joints serving global cuisine are easy to locate throughout the city. You can get an understanding of the Dubai monthly food cost from the chart below.
| Food Category | Estimated Monthly Cost |
| Groceries | AED 1,500 -3,500 |
| Casual Dining | AED 1,000 - 2,500 |
| Fine Dining | AED 3,000 - 6,000 |
Utilities
The next basic expenditure you have to deal with while figuring out the average cost of living in Dubai is that of utilities. This will include everything from your electricity, cooking gas, water bills, internet bills, and mobile packs. Dubai is a predominantly hot city and you will find yourself using the air-conditioning here more than most other cities. This means the average electricity bill in Dubai is always going to be a bit high compared to other cities.
The government entity DEWA (Dubai Electricity and Water Authority) handles the supply of electricity, water, and other allied essentials to the residents of the city. The average DEWA bill for 1 bedroom usually is AED 300-550 and it increases with the size of your residence.
Post-paid mobile plans are more expensive than pre-paid ones. Internet plans vary in usage and come in premium and basic variants. Here is a chart that gives you an idea of how is Dubai for living in terms of utility cost.
| Types of Utility | Monthly Cost |
| Electricity | AED 500-1,200 |
| Cooking Gas | AED 90-300 |
| Water | AED 200-550 |
| Internet | AED 250-600 |
| Mobile Packs | AED 150-500 |
Transportation
The next order of business in planning your monthly budget is understanding transportation expenses in Dubai. Unless you are working remotely, you have to commute to work daily. The same is true of students who have to attend schools, colleges, or universities. Even for grocery shopping or going out for a leisure purpose, you have to commute and that involves a cost.
The good news is that the cost of fuel in Dubai is comparatively lower than most other places in the world. The amount of money you will spend on petrol for your personal vehicle will depend on the model of your car, how frequently you take your car out, and how much distance you cover daily. You also have to consider the costs of car insurance. Not to forget, you have to bear maintenance fees to avoid huge repair costs.
On the other hand, if you are depending on public transportation, Dubai has a lot to offer for you. The city is intricately connected through a wide range of public transportation systems. This includes metro, trams, taxis, buses, and ferries, among others. These are fairly cost-effective, quick, and convenient. You can get yourself a nol card that will further make public transportation easy for you. Ride-sharing services are also available, although they are a bit expensive. Take a look at the transportation expenses that you need to include in your list of cost of living in Dubai from this chart below.
| Transportation Mode | Monthly Cost |
| Personal Vehicle | AED 1,500-3,000 |
| Buses | AED 150-250 |
| Taxis | AED 1,000-2,000 |
| Ride-Sharing | AED 700-1,500 |
Healthcare
The healthcare system of Dubai is of par excellence. To ensure a proper healthcare service in the city, it has been made mandatory to have health insurance for the residents. If you are relocating to Dubai for work purposes, make sure your company provides you with health insurance. In most cases, this health insurance extends to family members as well.
In the event health insurance is not provided to you, you need to ensure that you purchase one from a reliable and trusted provider in the city. You also need to remember that if you are bringing in any domestic help, you need to provide them with health insurance as well.
The city is equipped with state-of-the-art medical technology and skilled healthcare personnel from around the globe. Healthcare is therefore a bit expensive here. There are public hospitals, private clinics, as well as medical centers across the city for your aid. The expenses you need to bear will also depend on the treatment you are seeking. This chart below will help you in getting an estimation of the healthcare expenses in Dubai.
| Healthcare Service | Cost |
| General Practitioner | AED 150-400 |
| Dental Care | AED 200-700 |
| Special Consultation | AED 400-1,000 |
| Hospital Stay | AED 2,000-8,000 (Per day) |
| Basic Health Insurance | AED 600-900 (Annually Per Person) |
| Comprehensive Health Plan | AED 5,000-9,000 (Annually Per Person) |
| Premium Health Plans | AED 10,000-15,000 (Annually Per Person) |
Education
When you are moving to Dubai with family, then education is something that may be on your list of expenses if you have kids. Many students from around the world also settle down here exclusively for studies as well. The education system of the city is pretty diverse and reflects the multiculturalism of the emirate.
The curricula of educational institutions are extremely varied and you will find American, British, Indian, and Pakistani along with Emirati educational systems across the city. Public schools, private schools, colleges, and universities are in abundance offering a wide range of courses. Private institutions are more expensive than their public counterparts.
Most expats prefer private schools since they follow international curricula and their extracurricular activities reflect a more global pattern. The tuition fees of universities depend on the type of course you select. To make education more accessible, there is a cap that has been set on the annual fees of private institutions. Get a glimpse of the educational expenses you need to bear if you decide to live in Dubai.
| Education Type | Annual Cost |
| Public Schools | AED 6,000-12,000 |
| Private Schools | AED 18,000-40,000 |
| International Schools | AED 35,000-80,000 |
| Colleges and Universities | AED 50,000-100,000 |
Entertainment and Leisure
The avenues for entertainment in Dubai are rampant. The city never sleeps and you will find eclectic sources for leisure everywhere. The city is known for some of the most magnificent theme parks and water parks in the world that make for perfect gateways for families. The nightlife of the city is also dynamic.
The movie theatres, opera houses, attractions, and shopping malls further add to the entertainment quotient of the city. Not to forget, the public beaches and parks offer ample modes of entertainment free of cost.
If you want to have a good time, you can rest assured that there is never a dull moment in the city. Here is a rough estimation of the expenses you need to bear for entertainment and leisure purposes in Dubai.
| Entertainment Mode | Cost |
| Movie Ticket | AED 30-50 |
| Nightclubs and Pubs | AED 100-250 |
| Amusement Parks | AED 150-400 |
| Water Parks | AED 100-350 |
Tips for Managing Costs of Living in Dubai
To help you figure out how to cut down your average living costs in Dubai, we want to present you with some tips for living in Dubai. If you religiously incorporate them into your lifestyle, you will notice that you are in better control of your expenditure. Living in a metropolitan city can be overwhelming and you should get all the help you need to cut down your extra costs.
While a lot of your expenditure depends on your lifestyle, the tips we are going to mention will introduce you to hacks that are designed to lower your average spending in Dubai. So, follow through.
Housing
To save your hard-earned money, you need to research thoroughly since the housing allowance in Dubai is a bit on the expensive side. First of all, before committing to one place, you need to compare the rental prices in the different areas of the city.
If you are single, then please consider shared accommodation. We also recommend you negotiate rental prices with landlords in exchange for a longer tenure. Furthermore, if you can manage to stay in an unfurnished apartment, you will save a lot of money as well.
Groceries and Food
If you make meal plans, you will not only save a remarkable amount of time but also money at the end of the week. This will enable you to shop with a proper list, which cuts down costs to a heavy extent. Don’t buy stuff just because they are available. If you don’t need it, don’t buy it even if they entice you with a discount.
Speaking of discounts, make the most of the supermarket promotions. Rely on home-cooked food rather than eating out. Choose affordable dining options in and around your area.
Utilities
In order to cut down your utilities costs, we encourage you to opt for energy-efficient appliances as much as possible. In addition, keep a watch on your water usage and cut down on any waste of water.
Many providers in Dubai offer a bundled TV and internet pack. Opt for them since they are cost-efficient. Whenever you are not using the AC, turn it off as it is the biggest reason for your high electricity bills.
Transportation
When it comes to cutting down transportation costs, we recommend you opt for public transportation as much as possible. Go for carpooling as it will reduce the fuel costs dramatically.
Last but certainly not least, you need to regularly maintain your vehicle as it will help it stay in shape and you will avoid any repair costs in the process.
Healthcare
In order to cut down expenses in healthcare avenues, try and opt for comprehensive health plans as they are more value for money. Additionally, use in-network healthcare providers.
To avoid diseases and expensive treatments, please regularly visit your doctor. Also, make sure to make the most of the wellness programs available.
Education
From an educational point of view, you can notably make a stark difference in your expenditure if you research thoroughly about the tuition fees in different educational institutions. Look out for courses and programs that you can apply a scholarship for. Try and find any financial aid you can.
Various schools in Dubai offer flexible payment plans. Consider them heavily since managing them is easier. Engage in extracurricular activities within the school so that you don’t have to make payments for them separately to learn a new skill.
Entertainment and Leisure
The expenditure you make on entertainment and leisure is heavily subjective and depends on your taste and lifestyle. But, if you are someone who frequently goes out to have fun in movie theatres, nightclubs, theme parks, and water parks, you should always look out for promotions and discount deals.
Try and plan your event during a weekday as the prices are usually lower on those days. Opt for free activities and events. In addition, have fun by exploring outdoor activities on beaches and parks as they are free of cost mostly.
Living Expenses in Dubai
Monthly Expenses in Dubai for a Single Person
If you are a single person, you can opt for an economical stay in Dubai. The biggest pool of money-saving avenue for you would be in housing. You can opt for a shared accommodation or rent a studio or 1-bedroom apartment. If the budget permits, try and find accommodation near your workplace or educational institute so that you can save money on transportation.
The monthly expenses in Dubai for a single person are around AED 4,000-7,000. The more luxurious your lifestyle is, the more expenditure you have to bear. But living as a single person opens up various avenues for you to save money.
Average Cost of Living in Dubai for a Couple
Living as a couple in Dubai is a fantastic option if you have a decent paycheck. Along with scenic beauty, the city provides ample opportunities to live the ultimate dream cosmopolitan life. Try and scout for a property in an area that is economical. Some of the best affordable places to live in Dubai are International City, Dubai Silicon Oasis, Deira, Al Nahda, and Al Warsan, among others.
The monthly expenses in Dubai for a couple are around AED 10,000-15,000. If you are a foreigner and thinking of getting married in Dubai and settling down, then you should acquaint yourself with the civil marriage as well as court marriage requirements of the city.
Cost of Living for a Family of Four in Dubai
Every year, thousands of families move to Dubai in pursuit of a better life. Life in Dubai for foreigners is pretty convenient thanks to the access to long-term residency visa options such as Golden Visa, Green Visa, and Blue Visa. The city, even though is expensive, offers a myriad of opportunities to further your career. With high-end amenities and access to a luxurious modern life, the money you spend in the city for living is worth it at the end of the day.
For families, healthcare and education along with the safety of the city owing to the strict laws and low crime rate are positive factors. As such, many families opt for this city as their home. The cost of living in Dubai for a family of 4 is around AED 22,000-3800. Making economical and sustainable lifestyle choices will allow you to save up more money.
To Conclude
Dubai is a land of dreams that has come a long way from being just a fishing village. Today, it stands as one of the most developed cities in the world and is home to countless high-net-worth families. With a booming economy and real estate market along with marvelous healthcare and educational sectors, it draws millions of people from across the UAE and the world to its shores.
While the cost of living in Dubai is more than the cost of living in Ras Al Khaimah and most other cities of the UAE, it is absolutely worth living in this city. If you can manage your finances better by planning accordingly and following a chart and sub-categories of expenses, you will save tons of money.
FAQs
Commonly Asked Questions about Living in Dubai
What is good about living in Dubai?
Dubai is the ultimate cosmopolitan city and offers every amenity you need for a modern life. From a stable economy to an affluent educational system, from smooth transportation to a high-end healthcare system, you will get everything at easy access in this city.
Is it expensive to live in Dubai?
With all the modern amenities available at convenience, the cost of living in Dubai is justified. It is worth it since the opportunities provided by the city make up for the expenditure. If you can manage your finances better by making budgetary plans, living in Dubai becomes affordable.
What is the average salary in Dubai?
This is extremely subjective and changes from time to time but for the most part, the average salary in Dubai is around AED 15,000-20,000.
How much is the average rent for a 1-bedroom apartment in Dubai?
The location of your accommodation will dictate the price of the rent. But, usually, the average rent for a 1-bedroom apartment in Dubai is around AED 5,000-7,500.
Is AED 8,000 a good salary in Dubai?
AED 8,000 is a bit on the lower side of a manageable salary if you are living with family in Dubai. If you are a single person opting for a shared accommodation with a highly economical lifestyle, you can manage it. But, having around AED 10,000 per month salary will give you a bit more convenience.
What are the highest-paying jobs in Dubai?
Some of the highest-paying jobs in Dubai include investment bankers, aviation, healthcare, real estate, lawyer, sales director, accountant, engineering, data science, finance, hospitality, and artificial intelligence specialist, among others.
What is a good salary in Dubai for a family of four?
To support a family of four, having a salary of AED 25,000-40,000 is a requirement. You need to bear health care and educational expenses along with housing, food, and transportation. Make budgetary charts ahead of every month to have better control of your expenses.
What are the best affordable places to live in Dubai?
Some of the best affordable places to live in Dubai are International City, Dubai Silicon Oasis, Deira, Al Warsan, and Al Nahda, among others.
What is the average cost of living in Dubai for a couple?
The average cost of living in Dubai for a couple is around AED 10,000-15000. However, please remember that the figure may vary according to your lifestyle choices.