With its constant growth and expansion, Dubai is an excellent place for foreigners to move to. The popular tourist destination is well-known for its luxury, but luxury often goes hand in hand with a high cost of living.
The benefits that come with living in this Middle Eastern metropolis are undeniable, but what about the cost of living in Dubai for expats?
Before deciding to move overseas, it’s important to be aware of the expenses that come with living in this vibrant city.
Whether you’re already planning your move to Dubai or simply curious about what life in the Emirates is like, this blog post will provide an overview of how much it costs to live in Dubai as an expat, from housing and transportation costs to healthcare and everyday expenses.
Cost to rent an apartment in Dubai
As with everywhere else in the world, the cost of renting an apartment in Dubai depends on what part of the city you want to live in.
If you want to live near Dubai city center, the convenience isn’t cheap. Here’s how much apartments rent for at Dubai Marina, a popular area among expats:
- Studio apartments: Monthly rent starts from approximately AED 4,500 to AED 5,700 ($1,225 to $1,550)
- One-bedroom apartments: Monthly rent ranges from AED 8,000 to AED 11,500 ($2,180 to $3,130)
- Two-bedroom apartments: Monthly rent ranges from AED 12,000 to AED 22,900 ($3,270 to $6,235)
Luxury options in prime locations can command even higher rents:
If living in a community among other expats is not so important to you, you can always find cheaper accommodation in other local areas. And as you might expect, areas on the outskirts of Dubai offer lower rental prices as well.
Cost to have a car in Dubai
There’s no end to the things you can see and do in a city as vibrant and exciting as Dubai.
With an extensive public transportation system, it’s easy to get around without a car. However, if you’re planning on living in Dubai and want the freedom to explore outside of the city limits, you’ll need a car.
If you only want to get out of town occasionally, you can consider renting a car for the duration. That way, you won’t have to worry about maintenance costs or depreciation. Besides, you can easily find a short-term rental contract that suits your needs. You can even rent a different car every month, if you fancy driving a variety of cars.
If you intend to rent an electric car, Tesla prices in the UAE for 2024 range from approximately AED 167,990 (around $45,600) for a Tesla Model 3 to AED 342,990 (around $93,400) for a Tesla Model X.
Shipping your car overseas is another option, assuming it’s equipped for driving on the right-hand side of the road.
Or you can buy your own car. A basic economy sedan will cost around AED 40,000 (approximately $10,900) per year in Dubai, including insurance, maintenance, and fuel. Buying a Toyota Corolla, which is a popular option among expats, will cost around AED 30,000 (approximately $8,200) per year, not including the down payment.
Living expenses in Dubai
Living expenses in Dubai have gone up, with the average cost of living for a single person rising by about 2.5% compared to 2023.
You can expect to spend around 3,965 AED (approximately $1,080) per month, not including housing costs. For a family of four, the estimated monthly expenses are about 13,842 AED ($3,769).
Grocery Costs
When it comes to groceries, it’s generally cheaper to buy local products, as imported goods tend to be pricier. Here’s what you can expect to spend on food:
- Single Person: Approximately 1,670 AED ($455) per month.
- Couple: Around 3,340 AED ($910) per month.
- Family of Four: About 6,680 AED ($1,820) per month.
Dining Out
Eating out in Dubai can fit various budgets:
- A meal at an inexpensive restaurant costs about 35 AED ($9.50) per person.
- A three-course meal for two at a mid-range restaurant will set you back around 300 AED ($82).
- For a fine-dining experience, expect to pay upwards of 500 AED ($136) per person.
Public Transportation Costs
Dubai’s public transportation system offers an affordable and efficient way to navigate the city, which can significantly reduce your overall cost of living. The Roads and Transport Authority (RTA) operates a metro and a comprehensive network of buses, so it’s easy to access various neighborhoods and attractions without a car.
Public transport is a budget-friendly option for daily commuting. For example, a single bus or metro ride costs around 3 AED (approximately $0.82). By taking advantage of the public transportation system, expats can enjoy the convenience of city travel while keeping their living expenses in check.
Entertainment and Fitness
When it comes to entertainment and fitness:
- A single cinema ticket costs around 45 AED ($12).
- Monthly gym memberships start from about 200 AED ($54), with prices varying based on the facility.
Smoking and Alcohol
If you smoke, a pack of Marlboro cigarettes will cost you approximately 22 AED ($6). Alcohol prices are generally higher due to taxes; a beer at a bar can cost between 40-50 AED ($11-$14).
Cost of Living for Different Demographics
For a Bachelor
Living in Dubai as a bachelor can be quite expensive. The average monthly cost of living is around 7,250 AED ($1,975). Housing costs typically range from 2,940 to 3,670 AED ($800–$1,000) per month, depending on the area.
For a Couple
If you’re moving to Dubai as a couple, you can expect to pay around 5,500 to 7,350 AED ($1,500–$2,000) for a two-bedroom apartment. Overall, the average cost of living for a couple would be approximately 11,000 to 16,500 AED ($3,000–$4,500). Here’s a breakdown:
- Utilities: About 1,375 AED ($375).
- Groceries: Approximately 2,200 AED ($600).
- Transport: Between 735 and 1,837 AED ($200–$500).
- Leisure: Around 1,100 AED ($300–$400).
For a Family of Three
For a family of three, much of the rise in living costs is due to education expenses. Monthly costs can range from 16,500 to 22,000 AED ($4,500 to $6,000), depending on lifestyle and location.
Healthcare Costs
The UAE boasts one of the best healthcare systems in the world, with numerous public and private facilities offering top-notch treatment. However, healthcare can be quite expensive, making health insurance essential.
- Cost of Services: A visit to a private doctor in Dubai averages around 265 AED (approximately $72). More serious medical conditions can lead to significantly higher costs, emphasizing the need for insurance.
- Mandatory Health Insurance: By law, all residents in the UAE are required to have medical insurance. If you’re employed, your employer must provide this coverage, including for one spouse and up to three dependents. If you’re not employed, you’ll need to purchase your own policy, which typically costs around 10,000 AED (approximately $2,720) annually for a reasonably comprehensive plan.
- Insurance Costs: The UAE ranks as the 7th most expensive country in the world for private medical insurance, which can be a consideration for expatriates.
While the costs may seem high, the quality of healthcare in the UAE is excellent. There’s a strong focus on improving health outcomes and access to advanced medical treatments.
Thoughts about the cost of living in Dubai for expats
: In conclusion, while Dubai may have a reputation for luxury, the cost of living for expats can be quite manageable with the right approach. The city’s tax-free income, diverse housing options, and affordable public transportation make it possible to enjoy a high quality of life without excessive spending.
Ultimately, your experience will depend on your lifestyle choices and budgeting strategies. By being mindful of your expenses and exploring local markets, dining options, and entertainment, you can thrive in this vibrant city. Dubai has a unique blend of modernity and tradition, making it an appealing destination for expats seeking adventure and opportunity.
Embrace the journey, and you may find that living in Dubai is not just about the cost but the enriching experiences it offers.