Average Cost of Living in Dubai
Whether you are planning to move to Dubai or looking for lucrative job opportunities over there, it is essential to have a proper understanding of the overall cost of living in Dubai.
As Dubai is continuously evolving as a vibrant hub of modernity and innovation, the expenses of living there have evolved significantly as well. Read this blog to learn about the monthly expenses in Dubai so that you can plan a budget accordingly.
The Primary Expenses in Dubai
1. Housing and Rental Expenses
Residential expenses are entirely dependent on where you reside in Dubai. Different areas tend to have different costs. Let’s say you rent out 1 bedroom apartment in the city centre it costs around AED 7,068.17 (USD 1,924.40) per month, 1 bedroom apartment outside the centre costs around AED 4,142.20 (USD 1,127.77), 3 bedroom apartments in City centre costs around AED 7,068.17 (USD 1,924.40), and 3 bedroom apartments outside the centre costs around AED 8,194.29 (USD 2,230.99). Do you see the difference?
2. Utilities Expenses ( Electricity and water )
The overall cost of utilities is comprised of electricity and water connection that’s provided by Dubai Electricity and Water Authority ( DEWA ). The average DEWA is different in summer and winter as the usage of A/C is typically higher in summer and the usage of the heater is typically higher in winter. The electricity cost in Dubai entirely depends on the type of property you own. The bill of a villa is much higher than the bill of an apartment.
3. Transportation Expense
Car ownership
The 2023 Toyota Corolla is one of the most widely used and driven cars in 2023 and costs around 73, 900. Pay a 20% down payment with a 5-year payback plan, so you’ll have to pay 20,800 for five consecutive months.
However, when it comes to buying used cars, a used 2018 Corolla costs around 50,000.
Car insurance
The car insurance cost in Dubai is somewhere around 1.5% to 3% of the overall car’s value. But a wide range of other factors also contribute to the overall cost of the insurance policy such as driver’s age, driving experience, and more.
4. Education Expense
Public Schools
Foreigners are permitted to attend both public and private schools in the UAE but they need to pay a certain amount of fees. Those who are interested in studying in public schools need to pay approx AED 6,000 (USD 1,635) per year.
Private Schools
Dubai has more than 200 private schools and around 300, 000 students are studying in them. The annual tuition fee for private schools ranges somewhere between AED 12,723 to AED 64,093 per year.
Higher education
The 65 universities of Dubai cater to both Emirati as well as foreign students. However public universities use Arabic as a medium of communication while private universities use English.
The expense required for an undergraduate degree ranges between AED 40,000 to AED 100,000 annually. However, the expense required for a graduate degree ranges between AED 50,000 to AED 120,000 annually.
5. Healthcare And Insurance Expenses
There is legislation by the Dubai Health Authority that all residents are allowed to have private medical insurance. It is well-renowned for its high-standard healthcare system. The price of living in Dubai is reduced as foreigners can benefit from the free-of-cost public and private healthcare facilities.
Health Card
Locals can avail of free medical facilities, however, ex-pats can get a 50% discount by getting a health card. The fees for health cards are as follows:
Foreigners' fee for up to 10 years is around AED 120 (USD 32.67)
Foreigners who are 18 or above are charged around AED 320 (USD 87.12)
Nationals fee for up to 10 years is around AED 25 (USD 6.81)
Nationals who are 18 or above are charged around AED 120 (USD 32.67)
Job Loss Insurance
Dubai offers financial protection against sudden loss of a job. The ILOE scheme supports you for three months after an unexpected loss of the job. The insurance premiums of this scheme are budget-freindly and tiered according to the basic salary.
Salaries over and above 16,000
AED 5 per month and AED 60 per year
Wrapping Up - Is It Expensive For Foreigners To Reside in Dubai?
Dubai will always be the top consideration for foreigners willing to seek opulence and contentment concurrently. The cost of living in Dubai is high but once you start living and earning, it becomes more affordable for long-term residents.
Grand Reliable is the best Dubai real estate investment agency for foreigners who are planning to move to Dubai.
