The UAE has long been a magnet for expats seeking a higher standard of living. Its luxurious lifestyle, world-class amenities, and tax-free income have made it a popular destination for professionals from around the globe. However, the allure of Dubai comes at a price. Understanding the real cost of living in Dubai as an expat is crucial to making an informed decision about relocating to this vibrant city.
This article will delve into the various factors that contribute to the cost of living in Dubai, providing a comprehensive overview beyond the initial impressions of luxury and opulence. From housing and transportation to education and healthcare, we will explore the expenses that expats can expect to encounter.
The Basic Cost of Living in Dubai
Housing
Dubai offers a diverse range of housing options, catering to various lifestyles and budgets. However, it’s important to note that real estate prices in Dubai can be relatively high, especially in prime locations.
- Renting: The average monthly cost for a one-bedroom apartment in the city centre is around AED 7,500, while a similar apartment outside the city centre can be found for approximately AED 4,300. For a three-bedroom apartment, expect to pay around AED 13,250 in the city centre and AED 8,050 outside.
- Buying: While purchasing property in Dubai can be a significant investment, it’s worth considering if you plan to stay long-term. The property market can be volatile, so it’s advisable to consult with a real estate agent for the latest trends and prices.
Transportation
Dubai boasts a well-developed transportation network, making it convenient to get around the city.
- Driving: Owning a car can be a convenient option, especially for those living outside the city centre. Gasoline prices are relatively affordable, with an average cost of around AED 3.66 per litre. However, traffic congestion can be an issue during peak hours.
Expect to pay approximately AED 3,000 per month to lease a car, which typically includes car insurance. If you own a car, the annual insurance cost can vary depending on the vehicle’s value, with an average of around AED 3,500.
- Public Transportation: Dubai’s public transportation system includes buses, metros, and trams. A monthly bus or transport pass costs around AED 365, while a single-use bus ticket costs approximately AED 6.2. Taxis are also readily available, with a starting fare of around AED 3.22 per kilometre.
Food
The cost of food shopping in Dubai can vary significantly depending on your dietary preferences. Local produce and staples like pulses and rice are generally more affordable, while imported Western goods can be pricier. Expect to spend around AED 1,500 per week for groceries, especially if you opt for imported items. To save money, consider shopping locally, exploring online grocery providers, and taking advantage of bulk discounts.
Utilities
Utility bills, particularly for electricity and water, can be substantial, especially for larger properties with features like swimming pools. The average monthly electricity bill for a four-bedroom villa during the summer months can be around AED 5,000, while it may decrease to AED 2,000 in winter. Having a pool or real grass can significantly increase utility costs. Additionally, DEWA requires a deposit of AED 4,000 for new connections.
Beyond the Basic Costs
Schools
Dubai offers a wide range of educational options, with numerous schools opening in recent years. This increased competition has led to more competitive school fees and discounts for founding families.
- British Curriculum Schools: Fees for British Curriculum schools can vary, but average around AED 50,000 per year for FS1 and can exceed AED 100,000 in secondary.
- Start Dates: Children are expected to start FS1 the September after they turn three, but school attendance is not mandatory until Year 1. Some nurseries offer flexible FS options for approximately AED 15,000 per term.
- Additional Costs: School uniforms, lunches, and after-school activities can add to your expenses. Budget around AED 3,000 for uniforms, AED 40-50 per day for lunches, and AED 2,500 per term for after-school activities.
- School Buses: Many schools offer school bus services, which can cost around AED 4,000 per term per child.
Health Insurance
Health insurance is mandatory in the UAE. If you’re employed, your company will typically provide basic coverage. However, if you need additional coverage or are self-employed, you’ll need to purchase your own insurance.
- Personal Health Insurance: Costs can range from AED 25,000 to AED 80,000 for a family, with many plans operating on a pay-and-claim basis.
- Dental and Maternity: Dental and maternity coverage may not be included in standard plans, so check your policy carefully.
- Dependent Coverage: If you have a helper, you’re required to provide them with health insurance, which typically costs around AED 1,000 for a basic plan.
Pet Care
Veterinary care in Dubai can be relatively expensive. You should budget approximately AED 2,200 per year for essential services such as registration, vaccinations, and routine check-ups for each pet. Additionally, relocating your pet to Dubai can be costly, with fees ranging from AED 7,000 to AED 60,000 depending on the animal’s size and weight.
Home Help
Hiring home help is common in Dubai. For a helper, you’ll need to renew their visa and contract every one or two years, which costs approximately AED 13,000. Salaries range from AED 3,000 to AED 4,000 per month, and you’re typically responsible for paying for their flights every one or two years. If your helper lives in your villa, you may need to contribute AED 1,500 to AED 2,000 per month towards accommodation costs.
A gardener can cost around AED 200 to AED 300 per month. A full-time driver will cost approximately AED 7,500 for a visa and a minimum salary of AED 3,000 per month..
Entertainment
Dubai offers a diverse range of entertainment options. While there are many affordable local cafes, dining out at upscale restaurants can be more expensive. Brunches often cost around AED 550 per adult, while a casual meal for a family of four typically ranges from AED 500 to AED 800.
For those seeking exercise, Dubai offers many free options like running, cycling, and swimming. Gym memberships can vary from AED 200 to AED 1,000 per month. Other entertainment expenses include movie tickets, museum visits, massages, theme park tickets, and bowling.
Setting up a Business
Establishing a business in Dubai typically involves initial costs for obtaining a license (ranging from AED 8,000 to AED 30,000). The specific costs can vary depending on factors such as the jurisdiction, types of licenses, visa requirements, and office rent. SPC Free Zone offers a competitive advantage with business licenses starting at AED 6,875. Additionally, we guarantee a bank account opening within three days for only AED 2,000.
To get a precise estimate of your business setup costs, use our online free cost calculator tool. This tool will provide you with a personalized breakdown of expenses based on your specific business requirements.
In Conclusion,
Understanding the real cost of living in this vibrant city is essential for making an informed decision. While Dubai offers a high standard of living, it’s important to factor in expenses beyond the basics, such as housing, transportation, and food. Educational costs, healthcare expenses, and the cost of maintaining a lifestyle can significantly impact your overall budget.
By carefully considering these factors and conducting thorough research, you can make an informed decision about whether Dubai is the right fit for your lifestyle and financial goals.
