In this article, we will explore the cost of living in Dubai. Especially if you have children, it’s important not to underestimate the cost of living. Although there is no income tax in Dubai, there are many other cost factors that we will thoroughly examine here.

Rent Costs

In Dubai, as in other major cities, rental prices vary greatly depending on location. In a good secondary area, such as Jumeirah Village Circle, you can find an attractive studio with an annual rent starting from AED 38,000. One-bedroom apartments start at around AED 50,000. For a one-bedroom apartment on The Palm, expect to pay around AED 120,000. In Dubai Marina, prices for similar apartments start at AED 70,000, and in Downtown Dubai, at around AED 85,000 per year. These are base prices and can vary depending on the developer and the building’s age. 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 building’s age and location being critical factors. If you are on a limited budget, you may need to make some compromises.

For rental prices in Dubai, there is virtually no upper limit. Villas in exclusive areas such as The Palm, District One, or Al Barari start at AED 800,000 per year.

For a detailed overview of rental prices, I recommend visiting Bayut. There, you can compare prices in different neighborhoods with the map view. Bayut also offers insights into the actual rental conditions of apartments in a specific tower, giving you a good understanding of whether the price quoted by the broker aligns with the market rate.

If you have questions about renting or purchasing property, we can assist you with professional contacts.

Additional Rental Costs

In addition to rent, there is the so-called “Dubai Housing Fee,” which you must pay to the Dubai Municipality. The fee is 5% of the annual rent and is payable in monthly installments through the DEWA app.

Electricity and Water

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

Groceries

The rule for groceries in Dubai is: imported products are expensive, locally produced products are affordable. Initially, you’ll likely tend to buy familiar products from home, but soon you’ll realize that imported goods are costly. Be open to discovering local brands and products, which are often fresher since they don’t need to be shipped worldwide.

Health Insurance

The monthly cost for health insurance in Dubai varies depending on the coverage included in the chosen plan. For private health insurance that is internationally valid (except in the US and Canada), expect to pay monthly premiums between AED 800 and AED 1,600.

Internet & Smartphone

In Dubai, home internet and smartphone plans are more expensive compared to those in Germany. You should budget AED 200 to 400 (approximately EUR 50 to 100) per month for home internet. The largest and most relevant providers are Etisalat and Du. A good smartphone contract will cost around AED 150 to 300 per month. Besides Etisalat and Du, Virgin Mobile also offers attractive mobile phone plans.

Kindergarten & School

There are no public schools in Dubai, so you will need to pay for kindergarten and school places. For example, at the “German International School,” the annual fees for kindergarten are around AED 38,000, for primary school approximately AED 45,000, and for grades 5 to 12 between AED 56,000 and AED 71,000 per year, per child. However, there are also more affordable schools and kindergartens. Realistically, you should budget monthly costs of AED 4,000 to 7,500 per child.