If you’ve ever thought of moving to Dubai, you’ve probably come across the realization that you’re going to have to conduct deep research before making the final decision. Since we understand the significance of having the correct information, we decided to write a brief article to introduce you to the economics of living in Dubai.
Let’s get straight to the point and get into what you need to understand about the typical cost of living in Dubai!
Expenses of living in Dubai
Together we’ll go over all the living expenses you can come across when living in Dubai.
One of the most vital expenses a plethora of people track is the cost of housing, as, on average, people spend around 30% of their monthly budget just to cover the housing costs.
For this reason, let’s start with the aforementioned biggest expense.
The cost of housing
Of course, the residential costs will heavily depend on where in Dubai specifically you choose to live. As in any city, you can find more expensive and less expensive neighborhoods.
Let’s take a look at the median prices to get a clearer picture of housing costs in Dubai:
The average rent of a 1-bedroom apartment will cost you around AED 90,000 (US$ 24,660) in the city center, and around AED 65,000 (US$ 17,800) outside the city center per year.
If we look at bigger apartments, such as 2-bedroom ones, an apartment in the city center will cost roughly AED 142,000 (US$ 38,900), whereas outside the center 2-bedroom apartment costs around AED 90,000 (US$ 24,660).
For instance, if we take a look at the well-known Dubai Marina, which is one of the most popular communities in Dubai, the average rental price for a single-bedroom apartment in this area currently sits at AED 110,000 (US$ 30,137) per year.
Of course, we understand that not everyone is a fan of renting.
If you’re planning on purchasing a property in Dubai, you should know that the median house price currently sits at around AED 1.7 million (US$ 465,750). Not bad for a city of such reputation.
Residential cleaning services
Residential cleaning services are a common expense of almost every Dubai resident and should definitely be taken into account when calculating the average cost of living in Dubai.
Although the rates vary, typically, a full-time domestic helper will cost you around AED 2,650 (US$ 725) per month, and a part-time domestic helper will cost around AED 400 (US$ 115).
Transportation cost
The cost of transportation is another essential factor people tend to look at when calculating the average cost of living in Dubai.
The infrastructure in Dubai, in general, is highly advanced. Besides driving your own car, Dubai offers many alternatives, such as the Dubai bus or Dubai Metro.
When it comes to gas prices, the price of gasoline varies from AED 2.84 per liter for the Special 95 to AED 2.95 per liter for the Super 98.
Suppose you’re not planning on owning a car in Dubai, no worries. As mentioned, the city offers cheap public transportation with bus tickets starting at AED 5 (US$ 1.36).
There’s also a possibility of buying a monthly pass for the bus with a single payment of AED 300 (US$ 82.00).
Are you a bigger fan of taxis? No problem. The average cost of a 1 km ride in a taxi costs on average AED 2.48 (USD 0.70).
The city is also famous for the Dubai Metro, which is relatively as cheap as taking the bus and even more efficient.
Education costs
Education is yet another important factor many people tend to factor in. After all, every parent wants to make sure their children have the best education possible.
In Dubai, there certainly isn’t a shortage of prestigious schools as it is home to more than 200 private schools where more than 295 000 students study.
The average international school fee ranges between AED 30,000 and AED 125,000 per year (roughly US$ 8,200- 34,250).
If you prefer public schools, no worries. Dubai is not only home to a plethora of private schools, but it is home to many public schools as well.
The only thing you have to keep in mind is that expats interested in public schools must pay the annual tuition fee of AED 6,000 (US$ 1,640).
Healthcare
Yet another essential expense to keep in consideration. Health or medical insurance is mandatory for all residents in the UAE. There is a high possibility that the company you’re working for provides health insurance for you.
However, in other cases, your company could decide not to pay it for you under certain circumstances.
In that case, you will be on an investor visa, and you will be required to purchase the insurance yourself from one of many medical insurance companies in Dubai.
Although the prices of health insurance may vary, great quality insurance will cost around AED 5,500 (US$ 1,500) per individual.
Entertainment, restaurants and groceries
As a resident of Dubai, you will find many attractions and activities in the city to try. From casual restaurants and cinemas to extreme sports and world-famous tourist attractions.
Dubai is a city that will satisfy everyone since it offers such a wide range of opportunities.
When it comes to the cost of restaurants, on average, you’ll spend around AED 180 (US$ 50) for a 1 person dinner.
However, if you decide to visit more luxurious restaurants in Dubai, sky’s the limit when it comes to prices.
Conclusion
Now that we’ve gone through all the essential living expenses in Dubai, you should have a clear picture of the average cost of living in Dubai in 2023. Of course, your expenses will highly depend on what level you are at, but it’s never wrong to at least have an awareness of median prices to help you picture the city’s economics better.
We hope that you found our article useful and that you will make the right decision for you, whatever it is.
If you’d like to read more real estate-related articles, make sure to check out our blog section.
