What is The Cost of Living in Dubai in 2023/2024
Are you dreaming of starting your own business in Dubai? Or are you looking for permanent options for moving to this dynamic city? Well, this bustling city is the perfect place to invest and move! But before you pack your bags, let’s talk about the cost of living in Dubai.
This place is known for its innovative technology and has undergone transformations in its cost of living. In this comprehensive guide, we’ve covered the most important aspects of sustenance in Dubai for 2023 and 2024. With this guide, you can make an informed decision about your future in this incredible city.
Is Dubai an Affordable Place to Live?
Dubai has established itself as a popular destination for those seeking a low cost of living, especially when compared to other expat hotspots like Hong Kong and Singapore. According to Mercer’s Annual Cost of Living Survey for 2023, it is possible to live in Dubai without breaking the bank.
Dubai vs. Global Metropolises
To better understand the costs of living in Dubai, let’s examine how it compares to other major cities. The cost of living in Dubai for a single person, excluding rent, the monthly cost is AED 3,965.3 (1079.73 USD). Meanwhile, the average monthly rent for a one-bedroom apartment in the city center is AED 7,068.17 (1924.62 USD). A taxi ride of one kilometer costs AED 3.00 (or USD 0.82), and a liter of gasoline costs AED 3.23.
Comparatively, the monthly cost for a single person in Hong Kong is AED 4,053.4 (USD 1103.72), and the average monthly rent for a one-bedroom apartment in the city center is AED 8,311.05 (or USD 2263.05). A one-kilometer taxi ride costs 4.46 AED (or 1.21 USD), and a liter of gasoline costs AED equivalent to USD 2.85.
In Singapore, the cost for one person per month, excluding rent, is AED 4,190.6 (approximately USD 1141.08), and the average monthly rent for a one-bedroom apartment in the city center is AED 13,562.39 (USD 3692.96). A taxi ride of one kilometer costs AED 2.74 (or USD 0.75), and a liter of gasoline costs 8.03 AED (or USD 2.19).
Lastly, in New York City, the monthly cost for a single individual, excluding rent, is AED 5,561.0 (USD 1514.23), and the average cost of a one-bedroom apartment in the city center is AED 13,684.68 (or USD 3,726.26). A taxi ride of one kilometer costs AED 6.85 (USD 1.87), and a liter of gasoline costs 4.14 AED (or 1.13 USD).
Peering into the Cost of Living in Dubai
Dubai’s appeal is multifaceted, as it offers a thriving city life and provides an environment for financial prosperity. It is essential to understand the different components that contribute to it. Housing is the most significant factor, followed by transportation and food, each accounting for 15% of the total cost of living, while housing makes up around 30% of the living expenses on average.
Monthly Expenses by Family Size
Family size significantly influences monthly expenses, as the number of individuals in a family affects overall expenses. For a single person, the monthly expenses for housing are approximately 30%, with transportation and food expenses each contributing 15% and 10% for other expenses.
For a couple, the living expenses might be around 25%, transportation and food expenses are 15% each, and other expenses are 10% of their income.
A family of four usually spends 20% on housing, with transportation and food expenses accounting for 15% each and other expenses taking up 10% of their overall expenses.
It is important to remember that these are general figures, and the actual costs may vary depending on various factors such as location and lifestyle choices.
The Price of Shelter
It is important to note that the cost of housing in Dubai varies greatly depending on the property’s location. This is usually determined by the proximity of your business within the city. To give an idea of the rental market, below is a breakdown of the associated costs of residential rental properties:
For a one-bedroom flat in the City Centre, the monthly cost is typically AED 7,068.17. In contrast, a one-bedroom apartment outside the city center costs AED 4,142.20 monthly. If you require three bedrooms, an apartment in the city center will cost around AED 13,230.68 (USD 3,602.21) per month, while a three-bedroom apartment located outside of the city center will cost approximately AED 8,194.29 (USD 2,230.99) per month.
Dubai boasts a variety of residential communities, each with its own rental market. Rates of rent are relatively consistent in areas such as Jumeirah Lakes Towers (JLT), Dubai Marina, Jumeirah Beach Residence (JBR), and Dubai’s Old Town.
For example, the annual rent for a one-bedroom flat in JLT is around AED 74,522, equivalent to approximately AED 6,210.2 per month. These areas offer popular amenities among expats.
Additional Cost of Living in Dubai
Residential Cleaning Services
Residential cleaning services in Dubai can be a significant expense for homeowners and renters alike. Many people hire domestic help to manage their cleaning responsibilities, with the full-time domestic helper ranging from AED 2,140 to AED 2,350 monthly.
Transportation Costs
Owning a car in Dubai comes with various expenses; for example, a 2023 Toyota Corolla typically costs around AED 73,900, with additional expenses totaling roughly AED 20,800 per year. Fuel costs in Dubai are relatively low compared to other parts of the world.
However, Dubai has a well-organized public transportation system with various fare structures. Taxis cost AED 3.00 per kilometre, while buses charge AED 4 for a single ticket within Zone 1.
Overall, Dubai’s transportation and cleaning services can be significant expenses for residents. However, with proper planning and budgeting, it’s possible to manage these costs effectively.
Educational Outlays
Families living in the UAE can enroll their children in either public or private schools. It’s worth noting that private schools are more expensive than public sectors, and expatriates can expect to pay tuition fees of up to AED 6,000 per year at public schools. Caps on annual tuition have been implemented at the over 200 private schools in Dubai to prevent steep fee increases.
However, international schools can cost USD 3,464 to USD 17,455 per year or AED 12,723 to AED 64,093. Higher education in Dubai is provided by 65 colleges that offer a diverse range of courses. Undergraduate degree programs can cost anywhere from AED 40,000 to AED 100,000 (USD 10,900 to USD 27,333) per academic year, while graduate degree programs can range from AED 50,000 to AED 120,000 (USD 13,616 to USD 32,680) per academic year.
Healthcare and Insurance Expenses
Dubai has significant healthcare departments, and all expatriates must possess private medical insurance. The healthcare industry in Dubai is of high quality, and both the public and private sectors provide access to services.
The Dubai Health Card is available to locals, offering free medical services and a fifty percent discount on medical care to expatriates. Expatriates under the age of 10 will be charged AED 120 (USD 32.67), while those over 18 will pay AED 320, equivalent to USD 87.12.
Dubai for Expats: Is it Cost-Effective for Living?
The thriving transformation and affordable cost of living in Dubai make it an attractive destination that foreigners choose for a permanent stay. Despite the rising costs, Dubai is still a financially feasible option for global professionals looking to minimize their expenses.
To know where to invest, connect with KELT&CO. We are a real estate partner providing you with a reliable service that can help you navigate Dubai’s constantly evolving landscape. Our expert guidance will ensure a seamless transition as you integrate into this vibrant city.
Let’s begin with an exciting journey towards a brighter future in this bustling metropolis with Kelt&CO!
