A Comprehensive Guide to the Cost of Living in Dubai (2023)

Dubai is an exciting and diverse city known for its modern architecture, rich culture, and economic opportunities. It has become a global hub for business, leisure, and expatriates seeking new adventures. But, Dubai has also gained a reputation as a playground for the filthy rich, where millionaires live in luxurious villas and drive supercars. So do you have to be super rich to live in Dubai, or is the cost of living affordable on a more modest income?

In this article, we take an in-depth look at the cost of living in Dubai, considering all the most common living expenses including housing, food, transport and education.

Housing Costs In Dubai

When thinking about the cost of living in Dubai, the first consideration should be housing, because this is likely to be by far your biggest expense. But, housing costs in Dubai vary significantly depending on a range of factors, including location, size and amenities.

For example, the average cost to rent an apartment in Palm Jumeirah, one of Dubai's most popular luxury communities, is AED 224,890 per year (Q3 2023). This is almost 4x the average cost of renting an apartment in one of Dubai's more affordable communities, Jumeirah Village Circle, which was AED 64,557.

Renting In Dubai

Renting is an incredibly popular choice for residents in Dubai, especially expatriates. Dubai offers a plethora of options for individuals looking to rent a property, from cosy studios to luxurious villas.

Here's a look at the typical rental prices per year that you can expect in Dubai, depending on whether you choose a budget, mid or luxury option.

Factors Affecting Rent Prices

There are a number of factors that impact rent prices in Dubai, including location, property size and amenities. 

Location

One of the primary factors impacting rent prices in Dubai is the property's location. The city is divided into different communities, each with unique characteristics and amenities. Popular areas such as Downtown Dubai and Dubai Marina tend to have higher rental rates due to their proximity to iconic landmarks, upscale amenities, and business districts. On the other hand, there are a number of communities in Dubai which may not offer the same prime location but do have much more affordable rental prices. 

Property Size and Type

The size and type of the property are crucial factors in determining its rental cost. Larger properties with more bedrooms and spacious living areas typically command higher rental prices. There are other factors too, such as apartments on high floors typically having higher rental prices than those on lower floors, and free-standing villas usually being more expensive than semi-detached townhouses.   
 

Amenities and Facilities

The amenities and facilities provided within a residential community greatly impact rent prices. Dubai is renowned for its luxurious lifestyle and often buildings and communities offer residents various amenities such as swimming pools, gyms, parks, and 24/7 security. Properties with well-maintained and fully equipped amenities are in higher demand, resulting in higher rental costs.
 

Infrastructure and Accessibility

Dubai's extensive infrastructure and excellent transportation network contribute significantly to rental prices. Properties near major roads, metro stations, and bus stops offer easy access to different parts of the city, making them more desirable for tenants. Neighbourhoods with well-developed infrastructure, including schools, hospitals, and shopping malls, also tend to attract higher rental rates.

Furnished vs. Unfurnished Properties 

Furnished apartments and houses in Dubai tend to be more expensive because furnished properties offer the convenience of moving in immediately without the need to purchase or transport furniture. On the other hand, renting an unfurnished property tends to be more budget-friendly, but you need to factor in the cost of buying your own furniture and home appliances.

Rental Contracts And Associated Costs

RERA (Real Estate Regulatory Agency) governs rental contracts in Dubai. Rental agreements typically last 12 months, although shorter-term rentals may be available at a higher cost. Here's a general overview of the costs associated with renting a home in Dubai:
 

Security Deposit

One of the key expenses associated with renting a home in Dubai is the security deposit. This is almost always a requirement when renting a property because it safeguards the landlord against any potential damages. The security deposit is typically 5% of the annual rent for an unfurnished property and 10% of the annual rent if the property is furnished. The security deposit is refundable at the end of the tenancy, subject to deductions for any damages. 

Agency Fees

It is important to use a reputable real estate agency when renting a property in Dubai because they will help you find a suitable property at a good price. 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. It is mandatory for all rental contracts to be registered with Ejari. When completing the Ejari process, you should expect to incur the following expenses: 

• Registration Fee:  AED 100 - AED 120
• 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 connection fee to activate the service, which varies depending on the type of property: 

• Apartments: AED 2,000
• Villas and Townhouses: AED 4,000

This fee is refundable at the end of the tenancy. There are also non-refundable activation charges as follows: 

• Meter connection charges: AED 100 - AED 300
• Registration fee: AED 10
• Knowledge fee: AED 10
• Innovation fee: AED 10

Municipality Tax (Housing Fee)

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 annual rent of the property. 
 

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. 
 

Maintenance Fees

In Dubai, many rental properties are part of gated communities or residential complexes that offer various amenities and services. These communities often have maintenance fees to cover the upkeep of common areas, landscaping, and other shared facilities. The maintenance fees can vary significantly and should be considered when deciding on a particular property.

Buying A Property in Dubai

Dubai's real estate market has experienced substantial growth and transformation over the years. The government's commitment to economic diversification and sustainable development has led to significant reforms which have been pivotal in allowing both residents and investors to easily buy property in Dubai. Buyers can choose between off-plan (under construction) and ready properties. 

Here's a look at the typical cost to buy a property in Dubai, depending on whether you choose a budget, mid or luxury option.

Costs Of Buying A Property In Dubai

As well as the purchase price, there are a number of 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
• Property Registration Fee: AED 2,100 for properties valued below AED 500,000 and AED 4,200 for properties valued above AED 500,000
• Mortgage Registration Fee: 0.25% of the loan amount + AED 290 (only applicable if the home is bought using a mortgage)

Agency Fees

It is important to use a reputable real estate agency when buying a property in Dubai because they will help you find a suitable property at a good price. When buying a property, you should expect to pay an agency fee of 2% (plus VAT) of the purchase price. 

Conveyancing Fees

A conveyancer will oversee the entire purchase process, including all of the legal and administrative requirements, whilst keeping you updated at every step. This is a worthwhile investment to ensure that you don't encounter any issues, and will typically cost from AED 5,000 to AED 10,000.

Mortgage Fees

If you are financing the purchase using a mortgage, you will incur the following costs:

• Mortgage Arrangement Fee: 1% of the loan amount + 5% VAT
• Property Valuation Fee: From AED 2,500 – AED 3,500 + 5% VAT

Cost Of Utilities In Dubai

Utilities are another major ongoing expense that should be factored into your cost of living estimates. These will vary depending on factors like accommodation type, usage, and lifestyle choices. 

Electricity

Dubai's electricity costs are influenced by factors such as consumption, type of property, and peak usage times. The Dubai Electricity and Water Authority (DEWA) provides electricity to residents. The average cost per kilowatt-hour (kWh) ranges from AED .23 to AED .38, with the cost per unit progressively increasing as usage increases. 

Water

Water costs are an essential expense that residents need to consider. DEWA also regulates the water supply in Dubai. The average cost for water usage ranges from 3.5 to 4.6 fils per Imperial Gallon. Taking proactive measures to reduce water consumption, such as fixing leaky faucets and using water-efficient appliances, can contribute to lowering water bills.

TV, Internet and Telecommunication

Dubai has a well-developed and competitive telecommunication market, offering various service providers and packages. However, prices vary depending on the provider, connection speed, and additional services such as television packages. The average cost for these utilities is: 

• TV and Internet: AED 250 – AED 1000 per month
• Mobile Plans: AED 125 - AED 500 per month

Transport Costs In Dubai

Transport costs are another key component of the cost of living in Dubai. These expenses will vary depending on both usage, and whether you decide to travel by public transport, taxi or your own vehicle. 

Public Transportation

Dubai has a well-developed public transportation system comprising of 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 need to obtain a NOL card (Nol being an Arabic word for fare). NOL is an electronic smart card used for fare payment across various modes of public transportation in Dubai. With a NOL card, commuters can easily navigate the metro system, with the fare for each journey being conveniently calculated based on the distance travelled. There are different types of Nol Cards available, including:

• Silver Card: Suitable for regular commuters. It allows unlimited travel within a specific time frame (e.g., daily, weekly, or monthly).
• Gold Card: Offers first-class privileges on the Metro and buses. It provides a more comfortable travel experience.
• Red Ticket: Ideal for occasional travellers and tourists. It can be loaded with credit and used to pay for individual trips.

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

Public buses are an economical and efficient means of transportation in Dubai. They offer a more comprehensive coverage area than the Metro. Buses operate at regular intervals and are equipped with modern amenities to enhance the comfort of passengers 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 of AED 7.50 credit to travel both Metro and the bus.
 

Taxis

Taxis play a vital role in Dubai's transportation network. They are a convenient and reliable means to commute within the city. You can find taxis at designated taxi stands, shopping malls, and hotels, and even hailed directly from the streets. You can also use apps like Careem to book taxis from your phone. 

All Dubai taxis operate with a metre system to ensure transparency and fairness. The metre calculates the fare based on the distance travelled and time taken. The initial fare for Dubai taxis is AED 12 with an additional charge of AED 1.97 per kilometre. This means that for a journey of 10km, you should expect a fare of about AED 32. 

Car Costs In Dubai 

For many, having a car is seen as essential for daily life in Dubai. Many residents commute for work, education and leisure, and may not have easy access to public transportation (plus regular taxi usage can get expensive), so having a car is a necessity. Residents can decide between hiring a car or purchasing one, with both being popular options. 

Hiring A Car 

Hiring a car in Dubai is very quick and easy as long as you have a UAE driver's license (or a recognised overseas driver's license if you are new to Dubai and still waiting for your Emirates ID). There are many hire car companies in Dubai, from well-known global brands to local operators, offering a range of vehicles. Many allow you to rent a car on a monthly basis, with some offering discounts if you commit to hiring the car on a longer-term basis. 

The cost of hiring a car varies significantly depending on the company used, expected usage (monthly mileage allowance) and car chosen, but the cost typically starts from about AED 1,700 per month. 

Car Ownership

For those planning to be in Dubai for the longer term, buying a car can be significantly less expensive than renting. Almost all of the major global car brands are available in Dubai and dealers typically offer the option to buy in cash or using finance. Owning a car in Dubai comes with the following expenses. 

Registration Cost

To legally operate your car in Dubai, you must 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 is mandatory in Dubai. It is advisable to compare different insurance providers to find the most suitable coverage and cost. Usually, car insurance costs around 1.25% to 3% of the car value per year. 

Fuel and Salik Costs

Fuel prices in Dubai are significantly less expensive than many other countries. The cost of fuel varies, but at the time of writing was as follows: 

• E-plus 91: AED 3.23 /litre
• Special 95: AED 3.31 /litre
• Super 98: AED 3.42 /litre
• Diesel: AED 3.40 /litre
   

Tolls

Dubai has toll gates on some major roads. You'll need to purchase a Salik tag (available from petrol stations) and register it to your car before you can pass 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 4 each time you pass through a toll gate. 

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 (depending on location and time)

Food Costs In Dubai

Food in Dubai can seem expensive, but it massively depends on the choices that you make. If you opt to regularly eat out in restaurants, and shop at upscale international supermarkets, then food can have a huge impact on your cost of living. But equally, it is possible to live affordably by option to regularly eat at home and avoiding expensive imported foods. 

Groceries

The cost of groceries in Dubai varies widely depending on your shopping habits, dietary preferences, and lifestyle. 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 6.81
• White Bread: AED 5.72
• Water (1.5 litres): AED 2.00
• Carbonated Drink (330 ml): AED 2.50
• White Rice (1 kg): AED 8.00
• Eggs ( 1 dozen): AED 11.50
• Cheese: AED 45
• Chicken (1kg): AED 40
• Beef (1 kg): AED 45
• Apples (1 kg): AED 8.50
• Bananas (1 kg): AED 6.50
• Onion (1 kg): AED 3.50
• Tomato (1 kg): AED 5.50
• Potato ( 1 kg): AED 3.80

Dining Out 

Dubai offers a vast range of options when it comes to eating out. 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

Healthcare Costs

The healthcare system in Dubai is a combination of public and private sectors. The Dubai Health Authority (DHA) governs and regulates healthcare facilities in the emirate, ensuring quality standards. 

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 

In Dubai, it is mandatory for all residents to have health insurance. This ensures that every resident of Dubai can get access to healthcare services. 

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 a minimum level of healthcare to employees 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. 

However, if for any reason you do not have a health insurance policy through your employer, then you must purchase a health insurance plan from a provider in Dubai. 

Health insurance packages vary in terms of their coverage and cost, with the price for an individual typically varying from AED 3,000 to AED 10,000 per year. In comparison, the cost for a family of four typically varies from AED 15,000 to AED 40,000 per year. 

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). The tuition fees in private schools can vary significantly depending on the school's reputation, location, and facilities provided.
 

International Schools

International schools in Dubai are renowned for providing a diverse learning environment and following internationally recognised curriculums. These 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

Affordable 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 alike. 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 295
• IMG Worlds of Adventure: AED 345
• Dubai Garden Glow: AED 70
• Wild Wadi Water Park: AED 215
• Atlantis Aquaventure Waterpark: AED 315

Other Recreational Activities in Dubai

• Overnight Desert Safari: AED 350
• Dubai Scuba Diving: AED 1200
• Quad Biking: AED 360
• XLine Dubai Marina: AED 650
• Hot Air Balloon Ride: AED 1100
• Skydiving: AED 2400
• Parasailing: AED 400

Free or Low-Cost Leisure Activities

Dubai also provides numerous opportunities for free or low-cost leisure activities. Here are a few options: 

Beaches: Dubai has a number of public beaches that are completely free to access. Jumeirah Beach and Kite Beach are popular choices.

Dubai Fountain Show: Witness the mesmerising fountain show in front of the Burj Khalifa and Dubai Mall. It's free to watch, and the performances take place every evening.

Parks: Stroll in Dubai's beautiful parks, such as Al Safa Park or Zabeel Park. Entrance fees are AED 3 for Al Safa Park and AED 5 for Zabeel Park.

Dubai Creek: Take a traditional abra (boat) ride for AED 1, or walk along the waterfront to experience Dubai's old and new sides.

Dubai Mall Aquarium: While the full aquarium experience can be costly, you can view a portion for free.

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: Facials at a spa or salon can range from AED 150 to AED 500 or more, depending on the type of 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's practical advice for managing finances in Dubai: 

Understand Your Expenses: 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 potentially cut back.

Create a Budget: Allocate a specific amount towards each expense category. Be realistic and consider your income while doing this. Set aside funds for savings and emergencies, and ensure your expenses do not exceed your income.

Implement Smart Saving Strategies: Consider shopping during the discount seasons or taking advantage of special offers and promotions. Explore loyalty programs and discounts offered by various outlets.

Be Cautious with Credit: Use credit cards for necessary expenses, and pay your bills in full each month to avoid costly interest charges.

Be Mindful of Impulse Purchases: Before making an expensive purchase, take some time to evaluate if it aligns with your budget and financial goals. Delaying a purchase decision can give you time to make a more informed choice.

Seek Professional Advice: If you find it challenging to manage your finances on your own, seek professional advice. Engaging a financial advisor or planner can provide valuable insights and guidance tailored to your needs.

The Average Cost Of Living In Dubai For Singles 

If you're 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.

 

The Cost Of Living In Dubai - A Conclusion 

Understanding the cost of living in Dubai is crucial for anyone looking to relocate or considering an extended stay in this city. 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. We encourage you to conduct thorough research to make an informed decision about the cost of living in Dubai. Consider lifestyle, personal preferences, and individual circumstances to determine your own cost of living in Dubai. 

It is worth noting that while Dubai may have higher living costs than other cities, it also offers unmatched unique experiences and opportunities. Remember that Dubai isn't just about expenses. It's about embracing a unique blend of cultures, exploring iconic landmarks, savouring diverse cuisines, and seizing opportunities for personal and professional growth. 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.
 

*All figures in this article are approximate estimates based on research conducted at the time of writing. Prices will change over time and your expenses will vary depending on your choices and lifestyle.