What does living in Dubai cost?
Dubai, with its pleasant hot climate, miles of beaches, exotic places like Burj Khalifa, Burj al Arab, Port De La Mer Dubai, and a growing economy is a common destination for travellers from all over the world. As the UAE is a tax-free country, many people come to Dubai and expect to save considerably at a reasonably rapid rate. It would be smart to look for your possible monthly expenditures, however, if you want to move to Dubai, as luxuries frequently result in more investment, smaller savings and even debt.
While any research on the cost of living in Dubai can differ greatly according to lifestyle and tastes, these estimates reflect average costs for those who want a modest, but convenient, medium-term budget lifestyle in the UAE.
As elsewhere in the world, rents in the emirates differ considerably according to your location. Rent deals are typically annual and can be renewed. Many owners want the full rental payment in advance and will accept two to four checks after the payment, and renters will have to pay a security deposit too.
Registered brokers and rental providers charge an annual rental fee of 5%. Popular expat rentals like the Dubai Marina, the Jumeirah Beach Residence (JBR) or Dubai’s old city, will cost you from AED 100,000 to AED 140,000 per year for a two-bedroom apartment, while a moderate two-bedroom apartment would cost around AED 75,000 per year in places like Al Qusais and Mirdif. You can share an apartment with other renters on your own, which can decrease your rental costs significantly.
The Dubai Electricity and Water Authority (DEWA) charges AED 1,000 for refundable connection for regular apartments and AED 2000 for larger villa properties when transferring to a new house or switching house.
Based on the size of the house, the cost of the utility bills for small two-bedroom apartments may vary between AED 1200 a month whereas 5,000 AED a month for large properties with a lawn and garden. In summer months, particularly from May to August, air conditioning may lead to significantly higher utility charges.
There are several schools in Dubai that can cater to broad foreign communities, including kindergartens, elementary schools and private schools. In schools, they teach the programme from the USA, the United Kingdom or Europe, primary education costs between AED 20.000 and 28.000.
International high schools cost from AED 40 thousand to AED 90 thousand that can be very costly. In addition, there is a huge demand for quality education and often we see lengthy waiting lists for admissions, so these costs are very likely to go up in future years.
Dubai is the most motorised city; while there is a range of public transport modes such as taxis, Dubai metro, buses and water taxis, not all transportation modes are linked to some parts of the city, however, to travel to one of the neighbouring cities, such as Sharjah or Abu Dhabi, it’s a necessity to have a car.
Average small cars like a Toyota Yaris will be costing you about AED 1,500 a month with an extra AED 400 for diesel, and you will find many companies in Dubai to assist you with car rentals.
Dubai sells a wide range of food with many foreign food labels in most supermarkets in the city. These can be costly, though you can purchase from a fraction of the cost you spend on them to buy better local foods. The total cost of food bills for a family of four is between AED 1200 and AED 1500 per month.
Home insurance policies launch at approximately AED 200 for coverage of AED 50,000, while car insurance usually costs about 4-7 per cent of the car’s value.
The majority of companies provide basic healthcare in hospitals and clinics, but foreign coverage is strongly advised if you want to use the outstanding services offered by many excellent private hospitals in Dubai.
Living in places like District One Villas Dubai, JBR, Burj al Arab can cause people a fortune of their lifetime, plus the additional living expenses like insurance, groceries, education, can not be possible if you are a middle-class family that is keen to shift to Dubai. Though, if you spend smartly from the start, Dubai can be a real treat for you.