The average cost of living in Dubai: a comprehensive guide

September 05, 2023

Сontent

Dubai is world-famous for its luxurious lifestyle, modern infrastructure, and vibrant culture. Its unique attractions make it a magnet for tourists and visitors, while the high level of life quality and security attracts more and more new residents every year. However, it's also important to understand the cost of living in this bustling city before planning to move or visit.

The living costs in Dubai consist of numerous factors such as accommodation, transportation, food, entertainment, and more. All of them have features unique for Dubai and a wide range of options for you to exercise, which allows for plenty of room for decision-making depending on your income. This comprehensive guide will give you an overview of the average cost of living in Dubai.

Accommodation

Naturally, this is one of the most important factors and arguably the biggest future expense in your budget. The cost of accommodation can vary quite a bit depending on the area and housing type. Dubai offers a spectrum of housing options, from extravagant villas and penthouses to more affordable residences such as studio apartments.

The cheapest accommodation option is a studio apartment. The average yearly rent of a studio ranges from AED 40,000 in relatively affordable or remote areas to AED 85,000 in the city center. Larger apartments or villas can cost considerably more.

If you’re planning to buy a property in Dubai instead of renting one, your best option will probably be off-plan projects. The city is rapidly growing and developing, with new residential communities and projects popping up every day, which allows for no shortage of variants to choose from. Off-plan real estate comes with considerable benefits in terms of prices, payment plans, layouts, and customization opportunities.

The average rent and sales costs look approximately like this:

Housing configuration	Average yearly rent, AED	Sales cost, AED
Studio apartment	From 30,000 to 50,000	From 475,000 to 775,000
2-bedroom apartment	From 80,000 to 100,000	From 1,215,000 to 1,400,000
4-bedroom villa	From 200,000 to 265,000	From to 5,000,000 to 6,300,000

Of course, both rent and purchase costs will depend heavily on whether your potential home is meant for a family, couple, or single person. Another aspect to consider is the residence’s proximity to the place of work and life quality amenities, which may heavily affect your transportation expenses in the long run as well as time losses. At the same time, while living in the city center areas such as Downtown Dubai or Business Bay makes travelling to work easier, it may not be suitable for families with children.

Transportation

Getting around in Dubai includes various transportation options, each with its own costs.

Public transport. When it comes to public transportation, the Dubai Metro and buses offer cost-effective means of commuting. A monthly metro pass will cost approximately AED 350, while taking a bus will cost you AED 4 to 8 for a one-way trip.

Taxis and ride-sharing. Taxis are widely available, although this travelling option may prove to be quite expensive in the long term, as the starting price is around AED 12 with AED 3 per kilometer. Ride-sharing services like Uber and Careem are also popular.

Private vehicles. Car prices heavily vary depending on the manufacturer, model year, and whether you’re buying a used or a new vehicle. More affordable used options with the 2017-2020 model year cost around AED 30,000-50,000. If you’re planning to buy a car, you may consider using car auctions or shipping one from overseas.

Note that buying a car in Dubai requires you to have a local driving license; otherwise, your private vehicle options are limited to renting one. Also, the city’s central districts are known for congestive traffic, so traveling within them may be wearisome. Depending on where you choose to live and your work location, certain means of transportation may prove more cost-efficient than others.

Food

Dubai is known for its diverse culinary scene, offering options for various budgets. Your everyday and monthly food expenses will mostly depend on your family’s size and whether you prefer dining out or cooking at home.

Dining out. A meal at a casual restaurant will cost you around AED 40-80 per person, while a mid-range one could cost around 80 to 120, and high-tier restaurants will charge you over AED 500 per person. Fast-food options might cost around AED 20-40.

Groceries. The monthly cost of groceries for a single person is around AED 1,000 and depends on eating habits and preferences. Some items like fresh meat, fruit, and vegetables are cheaper in Dubai compared to the world’s major cities. The average grocery prices look like this:

Water (1.5-liter bottle) – AED 2.10
Bread (500g) – AED 5.45
Eggs (6 pieces) – AED 5.50
Milk (1 liter) – AED 6.63
Bananas (1kg) – AED 6.76
Beef (1kg) – AED 47.45

There is no shortage of hypermarkets and supermarkets in Dubai. Retail chains like Spinneys, Carrefour, and Lulu are usually available in each residential community or in close proximity and offer reasonable prices. You can save money by using discounts and special offers.

Utilities

Basic housing utilities include electricity, water, garbage, cooling, and heating. Utility expenses are based on various factors, but the most significant one is your home’s floor space. For example, the average monthly cost of basic utilities for an 80-square-meter apartment will amount to approximately AED 700.

Other necessities such as a phone plan and home Internet access will cost around AED 25 and 310 respectively.

Healthcare and Insurance

Healthcare and insurance are crucial considerations when assessing the cost of living in Dubai. The city provides a high standard of medical care, but it's important to understand the expenses associated with healthcare services and the necessity of having adequate health insurance coverage.

Health insurance is mandatory for Dubai residents. If you’re working for a local company, your employer will cover the cost of your health insurance and sometimes even that of your family members. However, if you’re not provided with health insurance – for example, if you’re self-employed, a business owner, or whatever the case may be – you will need to buy one yourself. And in the case of owning a business with local employees, you will have to provide them with health insurance as well.

In addition, if your monthly income is less than AED 4,000, you’re eligible for the Essential Benefits Plan (EBP), which will cover your healthcare needs such as inpatient and outpatient services, emergencies, maternity care, and more.

Here are the costs of main health insurance options in Dubai:

Insurance Type	Single Person (AED)	Family with 4 Members (AED)
Basic health insurance	600-800	17,000
Comprehensive health plan	5,500	33,500
Premium health plan	10,000-15,000	70,000

Note that the basic health insurance plan may not cover some prescribed medications as well as visits to certain specialists, elective procedures, and non-essential treatments, so it’s up to you to account for potential medical expenses not covered by insurance in your budget.

Entertainment and Leisure

Dubai provides a plethora of entertainment and leisure options. You can shop in numerous malls, such as the world-famous Dubai Mall, experience different cuisines at cafes and restaurants, visit tourist attractions and theme parks, go to a movie theater or spend time on the beach or in the city’s many parks. Dubai has a range of venues hosting music festivals, indoor and outdoor events, sports championships, and others.

Some of the options can be more costly than others, but there are many things you can enjoy both by yourself and with family members. For example, a movie ticket costs around AED 45.

As for recreation, many residential communities have in-house gyms with memberships costing around AED 280 per month. If you’re a sports person, you might even consider living in Dubai Sports City, a residential community focused on sports and recreation with numerous sports facilities and venues. There is also no shortage of spas, fitness centers, pools, and other recreational options in Dubai.

Education

Dubai offers a range of educational institutions, from public and private schools to renowned universities. However, the school fees tend to be quite high, which is a common concern for families with children, so it is very advisable to consider the available options and potential expenditures with regard to your budget.

Public schools. Public schools in Dubai are government-funded and provide education primarily to UAE nationals. The curriculum is typically based on the UAE Ministry of Education standards. While foreign children are allowed to attend public schools, they are charged for the education, unlike the locals. In addition, public schools usually offer instruction in Arabic, with English introduced as a second language.

Private schools. Dubai boasts a number of international schools that adhere to International Baccalaureate (IB), British, American, or even Indian curricula and are accredited by the respective countries and educational bodies. Unsurprisingly, the fees they charge are significantly higher than that of public schools, but instead, they offer a more diverse curriculum, higher quality education, and instruction in different languages, the most common of which is English. This is especially useful for children of expats and foreigners as it makes the process of adjusting to a different cultural environment easier.

Here are the approximate annual education fees for a foreign student in 6th grade:

School Type	Annual Costs (AED)
Public school (for foreigners)	3,500-12,500
British school	16180 - 86260
American school	17470 - 82500
Indian school	10250 - 30400

Note that spaces in private schools are often limited, and admission to them can be competitive, especially for well-known institutions. Some schools have specific entrance exams or other admission requirements. However, a number of educational institutions introduce special programs for successful students and athletes with significant advantages in tuition costs. In addition, education costs can sometimes be covered for children of highly valuable employees by the companies they work for.

Miscellaneous

Other expenses like clothing, furniture, personal care, and incidental costs can vary based on individual preferences and lifestyle. For families with children, for example, education expenses will also include things like school supplies and school trips that need to be accounted for when forming the family budget and will heavily depend on the school type. Those intending to buy a private vehicle should also factor in additional expenses such as repairs and gas, which, fortunately, is fairly cheap.

Average Monthly Costs of Living in Dubai

Naturally, the monthly cost of living in Dubai consists of the sum of the above-listed costs and can be vastly different depending on your lifestyle and family size. Here are the median numbers:

Costs Type	Single Person	Couple	Family with 4 Members
Rent	2500 - 42000	5000 - 90000	6000 - 120000
Food	10000	14000	28000
Utilities	11000	23000	40000
Leisure	650 - 15000	1000-15000	2000 - 30000
Transportation	400 - 15000	800-18000	1500 - 37000
Education	-	-	6000 - 120000
Total	5650 - 93000 (дирхам)	10500 - 160000	22300 - 375000

Remember that these figures are averages and can vary based on personal choices, location, and changes in the economy. However, they do give you an understanding of what to expect in Dubai in terms of expenses and what income is required to cover them on a daily basis.

Conclusion

Dubai offers options for both budget-conscious individuals and those seeking a more luxurious lifestyle. Some essentials may be more expensive compared to other cities and countries, some – less, but there are plenty of ways to save your money if you need to. It's essential to research and plan your budget accordingly to ensure a comfortable stay in this dynamic city.