Cost of Living in Dubai (2025)
Dubai is expensive — but probably not in the ways you expect. Housing will eat your budget. Groceries are reasonable. And the zero income tax changes everything.
I've lived here for 3 years and helped 25+ people relocate. Here's what you'll actually spend, based on real numbers from real people — not government statistics or outdated expat surveys.
What You'll Actually Need
A single professional needs AED 10,000–15,000/month to live comfortably. A family of four needs AED 25,000–40,000/month. Less is possible. More is easy to spend.
| Profile | Minimum | Comfortable | Premium |
|---|---|---|---|
| Single | AED 8K | AED 12–15K | AED 20K+ |
| Couple | AED 12K | AED 18–22K | AED 30K+ |
| Family of 4 | AED 20K | AED 30–35K | AED 50K+ |
AED 1 = ~$0.27 USD / £0.22 GBP / €0.25 EUR
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Housing: 40–50% of Your Budget
This is the big one. Dubai rent will likely be your largest expense, and it varies dramatically by neighborhood. The difference between JLT and Downtown for the same size apartment can be AED 30,000–50,000 per year.
Rent by Neighborhood (Annual)
| Neighborhood | Studio | 1BR | 2BR |
|---|---|---|---|
| JLT | 35–45K | 50–70K | 80–110K |
| JVC | 30–40K | 45–60K | 65–90K |
| Business Bay | 40–50K | 60–80K | 90–130K |
| Dubai Marina | 45–55K | 65–85K | 100–140K |
| Downtown | 55–70K | 80–110K | 130–180K |
| Palm Jumeirah | — | 90–130K | 150–250K |
Security deposit: 5% of annual rent. Agency fee: 5% of annual rent. EJARI registration: AED 220. Chiller fees: AED 0–1,500/month (check before signing). You'll need AED 15,000–40,000 upfront just for a 1BR apartment.
Utilities: Higher Than You'd Expect
Dubai utilities aren't cheap, especially in summer when AC runs 24/7. DEWA (Dubai Electricity and Water Authority) handles both electricity and water.
| Utility | Monthly Cost | Notes |
|---|---|---|
| DEWA (elec/water) | AED 400–1,000 | Summer bills 2–3x winter |
| Chiller (AC cooling) | AED 0–1,500 | Some buildings include in rent |
| Internet | AED 300–500 | du or Etisalat only |
| Mobile | AED 100–300 | Prepaid or postpaid |
Total utilities: AED 800–2,500/month depending on apartment size and season.
Food: Reasonable to Extravagant
Good news: groceries in Dubai are reasonable. The catch: dining out adds up fast, and Dubai's social scene revolves around restaurants and brunches.
Groceries
Budget (Carrefour, Viva, Union Coop): AED 1,200–1,800/month
Mid-range (Spinneys, Waitrose): AED 2,000–3,000/month
Premium (Organic, specialty): AED 3,500+/month
Dining Out
Cheap eats (cafeterias, food courts): AED 20–40/meal
Mid-range restaurants: AED 80–150/meal
Nice restaurants: AED 200–400/meal
Friday brunch: AED 200–600/person (with drinks)
A beer at a bar: AED 40–60. A bottle of wine at a restaurant: AED 150–400. If you drink regularly, budget for it. Many people cut back significantly after moving here.
Transportation: Car vs. No Car
This is a real decision in Dubai. Some neighborhoods are very walkable (Marina, Downtown, JLT). Others require a car. Here's the honest comparison:
With a Car
| Expense | Monthly Cost |
|---|---|
| Car payment/lease | AED 1,000–3,000 |
| Insurance | AED 200–400 |
| Fuel | AED 300–600 |
| Salik (tolls) | AED 200–600 |
| Parking | AED 0–1,500 |
| Total | AED 1,700–6,100 |
Without a Car
Metro: AED 100–300/month
Taxi/Uber: AED 500–1,500/month
Total: AED 600–1,800/month
Try going car-free for your first 3–6 months, especially if you live near the Metro. You might not need one. If you do need a car, you'll know exactly why — and you won't have rushed into a bad lease.
Healthcare: Usually Covered
Health insurance is mandatory in Dubai. Most employers include it in your package. If you're self-employed or a freelancer, you'll need to buy your own.
Employer-provided: Included (check coverage level)
Basic self-funded: AED 3,000–5,000/year
Comprehensive: AED 8,000–15,000/year
Family coverage: AED 15,000–30,000+/year
Education: The Big Variable for Families
School fees in Dubai range from affordable to astronomical. Curriculum choice is the biggest factor.
| Curriculum | Budget | Mid-Range | Premium |
|---|---|---|---|
| Indian/Pakistani | 10–25K | 25–40K | 40–60K |
| British | 30–50K | 50–80K | 80–120K |
| American | 40–60K | 60–90K | 90–130K |
| IB | 50–70K | 70–100K | 100–150K |
Annual fees per child. Add 15–25% for uniforms, books, transport, activities.
Lifestyle & Entertainment
Dubai has plenty of free activities — beaches, parks, walking areas. But the social scene here revolves around spending money. Budget accordingly.
Gym membership: AED 300–600/month (often included in building)
Beach club day pass: AED 200–500
Cinema: AED 50–80
Monthly social budget: AED 500–3,000 (varies hugely)
Real Monthly Budgets
Here's what three real lifestyle scenarios look like, broken down line by line.
Dubai vs. Other Cities
The real question isn't "Is Dubai expensive?" — it's "Is Dubai expensive compared to where I am now, factoring in taxes?"
| Category | Dubai | London | NYC | Singapore | Lisbon |
|---|---|---|---|---|---|
| Rent (1BR central) | $1,500–2,200 | $2,200–3,000 | $3,000–4,500 | $2,000–3,000 | $1,200–1,800 |
| Income Tax | 0% | 20–45% | 22–37% | 0–24% | 14–48% |
| Dining Out | $$$ | $$$$ | $$$$ | $$ | $$ |
| Healthcare | $$ | Free (NHS) | $$$$ | $$ | $ |
At a $100,000 salary in Dubai, you keep $100,000. In London, after tax, you'd keep ~$70,000. In NYC, ~$65,000. That extra $30–35K buys a lot of "expensive" Dubai brunches.
10 Ways to Cut Your Costs
- 1Negotiate rent — especially in summer (low season). Landlords will often drop 5–10%.
- 2Pay rent in fewer cheques — 1–2 cheques instead of 12 can get you a discount.
- 3Live in JLT instead of Marina — similar vibe, 15–20% cheaper rent.
- 4Cook more — dining out is where budgets spiral. AED 2,000/month in restaurants is easy to spend without noticing.
- 5Use the Metro — if you're on a Metro line, you might not need a car. Test it first.
- 6Shop at Carrefour or Union Coop — not Spinneys or Waitrose. Same products, lower prices.
- 7Skip the car for year one — you'll know within 6 months if you actually need one.
- 8Negotiate education allowance — if you have kids, push for school fees in your package.
- 9Time your move for summer — lower demand means better deals on apartments and furnishing.
- 10Avoid tourist areas for dining — Downtown and JBR restaurants charge premium. Deira and Karama have great food for half the price.
Common Questions
Yes and no. Housing and dining out are expensive. Groceries, petrol, and many services are reasonable. The zero income tax dramatically changes the math — your gross salary is your net salary. For most professionals, the effective cost of living (after taxes) is lower than London, NYC, or Singapore.
Yes, but it requires discipline. You'd need to share an apartment or live in a budget area (International City, Discovery Gardens), cook most meals, use public transport, and limit social spending. It's doable for singles — not realistic for families.
Upfront housing costs. You need 10–15% of annual rent in cash before you move in (deposit + agency fee + EJARI). For a AED 80,000/year apartment, that's AED 8,000–12,000 due on day one — on top of your first rent cheque.
Usually rent. Dubai has high property transaction costs (4% DLD fee, agent fees, mortgage fees) and rental yields are strong. Unless you're staying 7+ years and buying in cash, renting often makes more financial sense. Do the math for your specific situation.
I recommend 3–4 months of expenses plus upfront costs. For a single professional, that's roughly AED 50,000–80,000 ($14,000–22,000). For a family, AED 150,000–200,000+. More if you don't have a job lined up.
Often, yes — especially for professional roles. Companies know about the housing costs and usually offer packages that account for it. But "tax-free" doesn't mean "higher gross." Your gross might be similar to home, but you keep all of it.
Comparable for housing. Cheaper for cars and petrol. More expensive for alcohol. Singapore has income tax (though lower than Western countries). Overall, Dubai edges slightly cheaper for high earners when you factor in taxes.
Social costs. Dubai life revolves around restaurants, brunches, beach clubs. If you're social, budget AED 2,000–4,000/month for "going out." You can spend less, but you'll feel it. Also: summer AC bills. They hurt.
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