Cost of living in Dubai for expats in 2021: opr.ae (2023)

Dubai is the city where the entrances and exits never end for its residents. The city is not just about attracting tourism, as foreigners play an important role in Dubai's economy. Expats invest heavily in the city's projects, run their own businesses in the emirates' free zones and come looking for employment opportunities in local companies. Expatriates make up around 88% of the UAE population. The city offers a high standard of living for both nationals of the country and expatriates, which means that the level of security, medical care and services are some of the best. According to Numbeo data, Dubai's quality of life index is estimated at 158.24, which is considered “very high”. Among other factors, the index includes relatively moderate rates of purchasing power and cost of living.

It has not gone unnoticed that during the last two decades (between 1998 and 2018) Dubai has increased its standard of living by 12.2% (due to the Mercer report). This can be attributed to the emirate's continuous efforts to improve its infrastructure and create an attractive environment not only for businesses but also for residents.

How does Dubai compare to expats now, after the year 2020 has brought so many new entries to the city? In 2020, we saw the city go to great lengths to combat the spread of the coronavirus by rapidly closing its borders and introducing lockdowns, just as many other countries around the world began to do the same, greatly affecting the economy around the world. As a result, some cities experienced an increase in property prices, while some other nations instead saw prices decrease. Dubai is with the latter. According to Numbeo's global ranking, which compares 440 major cities, the Arab megalopolis moved to 262nd place in June 2021 from 152nd place in 2020.

According to the Numbeo rating system, Zurich and Switzerland were the most expensive cities in the world for their cost of living in 2020, topping the global ranking scale. It is followed by New York and the US, at 11th place, and Dubai at 152.

As of June 2021, according to the same Numbeo data, Hong Kong, Hamilton, Bermuda, and Tokyo topped the global ranking list for cost of living. Dubai, on the other hand, fell 110 points from the previous year to rank 262nd.

The cost of living per month without rent for a single person in Hamilton, Bermuda is estimated at AED 6,706 (USD 1,826), for a family of four: AED 24,614 (USD 6,701). In New York, monthly costs, excluding rent, for a single person are AED 4,949 (USD 1,348), for a family of four - AED 18,197 (USD 4,954).

In London, singles will need around AED 4,428 (USD 1,206) without rent, a family of four: AED 15,718 (USD 4,280).

In Dubai, the costs mentioned above are significantly lower and look like this: the monthly budget excluding rent for one person is estimated at AED 3,434 (USD 935) and for a family of four, AED 11,842 (USD 3224).

Going back to a comparison of Dubai's cost of living year over year, in monetary terms the negative price movement is about half that for a single person and about 33% less for a family of four. In 2020, a single person spent on average AED 8,972 (USD 2,443) and a family of four AED 16,478 (USD 4,486). Clearly, living in Dubai has become more affordable in 2021.

What does the cost of living imply? Broadly, the notion includes expenses related to one's basic needs, such as housing and utilities, food, clothing, medical care, and transportation. Everything that goes beyond education, entertainment, travel, fitness, etc. It largely depends on personal status and lifestyle and can be a rigid spending item in a person's monthly budget or it can be the next biggest expense.

If you are planning to move to Dubai, it would be useful to estimate your upcoming expenses and calculate a preliminary monthly budget. Here we have tried to summarize the most common costs an expat may incur to give you a better idea of ​​what the cost of living is like in Dubai 2021.

Housing in Dubai is cheaper than some of the world's major cities, both in terms of renting and buying property. However, this is still a considerable amount of a typical income. In Dubai, an average monthly net salary is AED 12,043 (USD 3,279). We've provided prices for rent and mortgage payments (if you're buying property) below so you understand the correlation between wages and housing costs.

Important:It is common practice in Dubai to rent or buy homes with the help of a real estate agency, so these costs must be taken into account when estimating upcoming expenses. Rental brokerage fees are paid promptly and may vary from 2% to 5% + 5% VAT of the first annual income. The usual commission for the sale is 4% + 5% VAT on the purchase price. The transportation fee ranges from AED 6,000 to AED 10,000 (USD 1,640-2,730).

Most of the expats living in the Desert City have to rent houses and find accommodation to be the majority of their salary, consuming more than 30% of an average income. A one-bedroom apartment in a fully-serviced building in one of Dubai's central districts can be rented for AED 5,574 (USD 1,518) per month on average. A 3-bedroom apartment for a family of four will cost around AED 10,818 (USD 2,946) per month. Rents in the city center are always the most expensive like anywhere in the world, but this is the expense, which is more under control.

People who work downtown will probably find it convenient to live close to the office and save on commute time, although in many cases you may find yourself overpaying for the privilege of staying in this location. As of June 2021, monthly rents for a one-bedroom apartment in Business Bay start at AED 2,920 (USD 795). A similar unit can be rented at The Lagoons in Dubai Creek Harbor for AED 3,750 (USD 1,020) per month.

If we consider the apartments outside the city center, the monthly cost will average AED 3668 (USD 1000) for a bedroom and AED 7401 (USD 2015) for a 3-bedroom unit. There is a constant development of communities outside of the city center, which is good news for a savvy renter. The peripheral location of the new neighborhoods is more than surpassed by the on-site amenities and facilities.

Use!The areas with the most affordable rental prices include Discovery Gardens, International City, Dubai Silicon Oasis, Dubai Production City (IMPZ), Town Square, Jumeirah Village Circle (JVC), Dubai Sports City and Remraam.

Along with apartments, villas are another preferred housing option in Dubai. For example, the DAMAC Hills 2 community, located 35 minutes from downtown Dubai, offers a 3-bedroom villa for approximately AED 3,333 (USD 907) per month. Affordable rental villas can also be found in Dubai Industrial Park, Dubai South and International City; Serena, where you can rent a 3-bedroom villa for prices ranging from AED 49,000 to AED 85,000 (from USD 12,300 - 23,200) per year.

Important:When renting an accommodation in Dubai, you should keep in mind that when signing a contract, you must also make a security deposit, which is usually equivalent to one month's rent. In addition, it is customary to pay rent with several checks, for the whole year at once. The number of checks can vary from 1 to 6 with a pre-written payment date on each, depending on the agreement between the tenant and the landlord. The greater the number of checks, the more likely it is that the monthly rental price may increase. If the landlord is unable to cash the check by the due date, it may result in additional penalties and conditions for lease renegotiation and further eviction.

According to UAE law, all leases must be registered through the Ejari system, which is the transfer of "ownership" of the residence from the owner to the tenant or from the previous tenant. The fee is AED 195 for all types of housing and is paid by the tenants.

If circumstances allow it, buying a property is always a good idea. Owning a property seems like a much more reliable investment than using the proceeds for a lease, the more so as property prices in Dubai are lower than in many major cities.

According to Numbeo data for May 2021, the price per square meter to buy an apartment in the city center averages AED 13,023 (USD 3,545), outside the city center it is AED 8,946 (USD 2,436). In fact, it is more affordable than in London, where the price “per square meter” in the center is 77.4% higher, or in Hong Kong, 89% higher.

For example, the average purchase price of ready-to-occupy apartments in Dubai Marina is AED 1.4M (USD 404K), in JLT prices start at AED 600K (USD 163K), Arjaan Dubai is AED 440K (USD 120K) and Emaar South Dubai from AED 500K (USD 136K).

When buying a property, you should consider additional costs such as transfer tax (4%), registration and administrative fees and 5% VAT.

Utility costs include monthly charges for electricity, water, sewer, cooling, garbage, and a 5% housing fee. These services are provided by the Dubai Electricity and Water Authority (DEWA). Activation will cost 110 AED (30 USD). According to Numbeo statistics as of May 2021, DEWA's monthly bill for an 85sqm apartment in Dubai averages AED 669 (USD 182). It is worth mentioning that summer and winter bills will vary greatly due to the use of air conditioning in summer, which will be significantly higher than in winter.

In Dubai, WiFi and TV services are available through two providers, 'Etisalat' and 'Du'. A basic plan, which includes 500 Mbps and free basic TV channels, starts from AED 389 (USD 106) per month (offered by "Du"). As for mobile phones, 1 minute of prepaid rate (without discounts or plans) is equivalent to AED 0.47 (USD 0.13). The basic mobile postpaid plan starts at AED 125 (USD 34) per month.

Domestic services are quite affordable in Dubai and very common among locals and expats. Those interested in domestic help such as maids, cooks, drivers, babysitters, etc. they should contact one of the Tadbeer centers, which has now replaced recruitment agencies.

Tadbeer centers offer four types of packages including 2 types of direct sponsorship, Tadbeer sponsorship, and time-based options. In simple words, one can hire a full time helper and sponsor their stay in the UAE, which means they directly take care of the helpers visa and its annual extension, accommodation, health insurance, Emirates ID, etc or take advantage of on-demand services under which the helper is sponsored by the company.

For reference, in Tadbeer's sponsorship category, an employer is required to pay a fixed monthly amount of AED 3,500 within the first 5 months, then the amount is reduced to the salary of a domestic worker, AED 2,420 for an African citizen, AED 2800 for an Indian, etc. For more information, visit the Tadbeer website.

When it comes to food costs in Dubai, it's worth noting that imported items, which occupy most supermarket shelves, are expensive. Still, it is possible to save costs if you buy locally produced seasonal produce or shop at more affordable chains like Carrefour, Lulu Hypermarket, Union Cooperative (versus premium supermarkets like Spinneys or Waitrose).

On average, the monthly cost of a basic grocery store for a single person can be around AED 3,436 (USD 935.45) and for a family of four it could go up to AED 11,863 (USD 3,230). This is a rough estimate and is subject to correction in accordance with financial capabilities and personal behavior and food preferences.

For a better understanding, we provide a short list of common food prices in a supermarket:

• 1 liter (1 quart) of whole milk: AED 8 (USD 2.18)
• Bread for 2 people for 1 day – AED 4.31 (USD 1.17)
• Arroz 1kg – AED 7.06 (USD 1.92)
• 500 g boneless chicken breast – 20 AED (5.44 USD)
• Round Veal 1 kg – AED 38.77 (USD 10.56)
• Apples 1 kg – AED 7.22 (USD 1.97)
• Potatoes 1 kg – AED 3.50 (USD 0.95)
• Agua 1,5L – AED 2,26 (USD 0,62)
• 1 bottle of good quality red table wine – AED 65-105 (USD 17.70-28.59)

A meal in a cafeteria costs approximately AED 35 (USD 9.53), while a 3-course dinner for 2 requires a minimum of AED 250 (USD 68). Fast food options, equivalent to a McMeal at McDonald's, cost around AED 28 (USD 7.62). Prices are average based on Numbeo data from May 2021. Buying and drinking alcohol has some specific rules to adhere to both in Dubai and across the UAE.

Its prices are much higher than those of European cities, and it is only available in authorized establishments and specialized stores, such as the African+Eastern and MMI chains. There aren't many discounts when it comes to alcohol, so choose wisely! To possess and consume alcohol privately (at home), foreign citizens over the age of 21 must obtain a permit (licence), which costs AED 270 (USD 74) and is valid for 1 year.

One of the best ways to get around Dubai is by driving. Excellent road infrastructure, reasonably cheap fuel, and plenty of free parking options make getting a car extremely convenient. The satisfaction of traveling by car can only be affected by traffic jams, quite high parking tickets (if you stay longer or park in the wrong area) and the need to pay a toll pass for some of the main roads. All vehicles are subject to the so-called Salik Tag on the windshield of the car and pay a toll of AED 4 (USD 1.1) when passing through the toll gates.

There are a total of 8 toll booths throughout the city. A Salik Tag costs AED 100 (USD 27.2) + AED 20 for delivery, if purchased online and can be easily recharged online or via an app during use. To avoid the toll, you can take many other routes (check the RTA app), but this is not always convenient because the journey time can increase.

Alternatively, you can use public transport and save on daily commutes. The public transport vehicles are all up to date, air conditioned and very comfortable. The Dubai Metro is considered one of the best in the world.

To get around the city, you can use the local buses (196 routes), the tram, water buses, taxis and the Dubai Metro. All modes of transport are covered by the NOL card, which is divided into 4 types depending on the frequency of travel and the class of service: Red - for tourists and visitors, Silver - for frequent passengers of standard class, Gold - premium class, Blue - individual according to your personal needs. All types, except Red, are valid for 5 years. Silver and Gold cards cost a deposit of AED 25+ AED 19 (USD 11.98) per trip.

The Dubai Monorail, which operates on the Palm Jumeirah, is not included in the NOL card system and has its own fares. A single trip starts from AED 10 (USD 2.7) and a round trip for a family of four costs AED 100 (USD 27.2). Numbeo statistics indicate that an average one-way bus ticket costs AED 5 (USD 1.36) and a monthly bus pass will cost AED 300 (USD 81.67). Taxis start at normal fare costs equal to AED 12 (USD 3.27), each additional kilometer is priced at AED 2.45 (USD 0.67).

The prices of the cars depend on the state and the year of manufacture. One of the most used vehicles in Dubai is a Toyota Corolla Sedan and it can be purchased for AED 70,581 (USD 19,215) or a Volkswagen Golf 1.4 90 KW Trendline is priced at AED 89,500 (USD 24,366). When buying a used car, depreciation reaches around 20% - 40% of the market price.

In addition to the purchase price of the owner's new car, you will need to pay AED 420 (USD 115) for car registration and AED 220 (USD 60) for opening a traffic file. Those who buy second-hand vehicles are charged differently: AED 420 to register the car, AED 170 (USD 46) for MOT, AED 350 (USD 100) for ownership transfer, and AED 220 for vehicle registration. traffic (if not activated). as other minor charges.

The price of gasoline in the United Arab Emirates is relatively stable and lower than in other countries: 1 liter costs AED 2.02 (USD 0.55).

Use:Those who have a valid international driver's license can transfer to a Dubai driver's license (certain countries only). To do this, you need to pay around AED 870 (USD 237) and other relevant fees, including opening a file, issuing licenses, etc. Getting a license from scratch requires paying more money and mandatory training and tests at official driving centers. .

There are many kindergartens and schools with different languages ​​and curricula concentrated in the multicultural city of Dubai. There are public and private educational institutions and expatriate children can attend both, although in all cases parents will have to pay school fees as free education is only available to UAE citizens.

The monthly payment for private nurseries amounts to AED 2,313 (USD 629.69). Education in an international primary school averages around AED 43,555 (USD 11,858) per year. Tuition fees for older children vary greatly depending on the status of the institution and the curricula.

Use:The fee is different for each grade and parents should be aware that in many cases the fees may increase from year to year.

Higher education in Dubai is offered at more than 60 universities. Tuition fees for an undergraduate degree range from AED 37,500 (USD 10,210) to AED 70,000 (USD 19,058) per year and for a postgraduate program, costs range from AED 54,800 to AED 82,000 (USD 14 920-22 380), as appropriate.

There are two types of clinics in Dubai: public and private. Foreign citizens can go to any of them, but, in most cases, the clinic is assigned by the insurance company whose policy is issued to that patient. A short visit to a private doctor (15 minute appointment) costs around AED 272 (USD 74). But residents can also be cared for in public hospitals. Having acquired the so-called "Health Card", non-native holders receive a 50% discount on medical treatments. Health cards for children will cost AED 120 (USD 33), the rate for adults from 18 years and older: AED 320 (USD 87). Cards for non-GCC and UAE citizens are valid for 1 year and are subject to renewal no later than one month before expiration.

There is an additional health program called the “Essential Benefits Plan” within which low-income workers, dependents, residents who do not work, and domestic employees have access to a good level of medical care at reasonable costs. Every year, the Dubai Health Authority announces premium ranges within this sector, which insurance providers must adhere to. Packages for 2021 start from AED 650 (USD 177) per year.

Routine expenses in everyday life go far beyond housing and transportation and can include many other things.

In order for the picture of the costs of living in Dubai to be complete, we will provide the prices of the most used services:

• Babysitter for a baby: 60-80 AED (16-21 USD) per hour. An hour-long babysitter for older children costs around AED 30-40 (USD 8.17-10.89)
• Dry cleaning/laundry ranges from AED 3-40 (USD 0.8-11) per item, self-service laundry is around AED 8 (USD 2.2)
• Monthly gym fee for an adult: AED 250 (USD 68)
• Female colored haircut can range from AED 200 (USD 82) to AED 1,000 (USD 272)
• Classic manicure AED 65 (USD 18), classic pedicure AED 80 (USD 22)
• Wellness treatment at a mid-range salon spa is priced starting at around AED 350 (USD 95)

Dubai is where the art of entertainment is honed to perfection. There are hundreds of options to spend a good weekend, from shopping in the malls to extreme sports such as races, desert safaris or diving. The cost of these types of activities varies greatly. A day pass, which includes ski slope session and equipment/outfit rental, can be booked at the Mall of Emirates Snow Park for AED 250 (USD 68). A one-day Aquaventure water park ticket for an adult is available for AED 269 (USD 74).

Don't forget to add any additional expenses you may have like enjoying a good cup of coffee or watching a movie. A ticket in an IMAX cinema costs AED 40 (USD 11) and a Cappuccino in a restaurant can cost up to AED 18.80 (USD 5.12).

• The average cost of living in Dubai for a family of four per month is AED 11,846 (USD 3,224) plus AED 10,818 (USD 2,946) for renting a 3-bedroom apartment in the city center.
• A single person will need around AED 3,434 (USD 935) for food and other expenses per month plus rent AED 5,574 (USD 1,518) for a 1-bedroom apartment in the city center.
• Living in Dubai, one can expect high rental prices, imported goods, healthcare, education, but will also have access to cheap costs for domestic fuel and groceries.
• Outside of the touristy areas of Dubai, prices drop quite quickly, which means property prices, rentals and services become much more affordable.
• Education is a source of higher costs for families with children, while health insurance is a mandatory concern for all Dubai citizens.