Cost of Living

The question of whether living in Dubai is as expensive as often presumed can be answered with a definitive "Yes". Especially for families with children, the cost of living should not be underestimated. Although there is no income tax in Dubai, there are numerous other cost factors that will be thoroughly examined here.

Rental Costs

In Dubai, as in other major cities, rental prices depend heavily on location. In a good B-location, like Jumeirah Village Circle, you can find an attractive studio for an annual rent starting from 38,000 AED. 1-bedroom apartments start at around 50,000 AED. For a 1-bedroom apartment on the Palm, you should expect about 120,000 AED. In Dubai Marina, prices for similar apartments start at 70,000 AED, and in Downtown Dubai at about 85,000 AED per year. These prices are starting points and can vary depending on the developer and age of the building. Due to Dubai's rapid growth and high demand for central apartments, rents can rise quickly.

Dubai offers housing options for various budgets, with the age of the building and location being key factors. If you have a limited budget, you might have to make some compromises.

There's virtually no upper limit to rental prices in Dubai. Villas in exclusive areas such as the Palm, District One, or Al Barari start at 800,000 AED annual rent.

For a detailed overview of rental prices, we recommend visiting www.bayut.ae. Here you can compare prices in different neighborhoods using the map view.

If you have questions about renting or buying a property, we are happy to assist you with professional contacts.

Additional Rental Costs

In addition to rent, there are Dubai Municipality fees of 5% of the annual rent, which are due monthly.

Electricity and Water

The costs for electricity and water in Dubai are relatively low. Currently, you pay 0.28 AED (about 7 cents, as of January 2024) per kilowatt-hour, and water costs about 0.036 AED (approximately 1 cent) per Imperial Gallon (about 4.5 liters).

Food

The rule for food in Dubai is: Imported products are expensive, locally produced products are affordable. Initially, you might tend to buy familiar products but will soon find that imported goods are costly. Local brands and products, often fresher as they don’t need to be transported worldwide, are increasingly popular.

Health Insurance

The monthly costs for health insurance vary depending on the scope of services included in the chosen package. For private health insurance that is valid internationally (except in the USA and Canada), you should expect monthly premiums ranging between 800 and 1,600 AED.

Internet & Smartphone

In Dubai, both home internet and smartphone plans are comparatively expensive. You should budget between 200 and 400 AED per month for a home internet connection. The costs for a smartphone contract are around 150 to 300 AED per month.

Kindergarten & School

There are no public schools in Dubai, so you have to pay for kindergarten and school places. For example, at the “German International School,” the annual fees for kindergarten are about 38,000 AED, for primary school approximately 45,000 AED, and for grades 5 to 12 between 56,000 and 71,000 AED per year and child. However, there are also more affordable schools and kindergartens. Realistically, you should expect monthly costs of 4,000 to 7,500 AED per child. More detailed information can be found in our guide.