The Real Cost of Living in Dubai: Beyond the Hype
We’ve all seen the glossy version of Dubai, endless sunshine, tax-free salaries, streets lined with supercars, and yachts drifting along the Palm. It’s a dream that pulls people in from every corner of the world.
But once the plane touches down, reality sets in. Living in Dubai is exciting, full of opportunities, but far from the one-size-fits-all fantasy sold online. The city thrives on ambition, and thriving here means understanding the real costs behind the lifestyle.
Dubai is a great place to live, work and yes, party if that’s your thing, but there is so much more on offer too. The opportunities to thrive are plentiful if you are willing to put the work in, but equally, it’s important to keep your expectations in check too.
So before you decide to ditch the chill for good, we take a look at the REAL cost of living in Dubai. *Full disclosure before we get stuck in here: We know that this is a broad market and is subjective based on your circumstances, but based on our living experiences (+10 years here) we think we have some valuable insights to share.
Finding a Place to Call Home
Where you live shapes your Dubai experience.
- Well-known areas like Dubai Marina, JLT, and Business Bay offer convenience and lifestyle perks with a higher price tag.
- Emerging neighbourhoods such as JVC, Arjan, and Silicon Oasis are easier on the wallet while keeping you connected to the city.
- Areas for families are growing across the city with some top areas like Arabian Ranches, Mudon, JVT, JGE and Dubai Hills are all great but do come at a more premium price as they are all villa communities.
What to know:
- Rental agreements require a passport, residence visa, and Emirates ID.
- Expect 5% of annual rent as a deposit (10% if furnished), plus an agency fee of around 5%.
- Most payments are still made by cheque on a quarterly or every six month basis, so set up your local bank account quickly.
Serviced apartments can bridge the gap while you search for your ideal home.
Utilities: The Hidden Costs
Electricity, water (DEWA), internet, and air conditioning add up, especially when the A/C runs 24/7 in summer’s 50-degree heat.
- Budget about 5% of your annual rent for utilities.
- DEWA deposits: AED 2,000 for apartments, AED 4,000 for villas.
- Internet and mobile? Du, Etisalat, and Virgin compete closely. Always read the fine print before locking in a plan.
Tip: Choose more data than you think you’ll need. Exiting a contract early can lead to penalties.
Getting Around
Transport is straightforward and relatively affordable:
- Car rental: AED 1,500+ per month.
- Metro: Cashless, efficient, with two main lines connecting the city.
- Taxis and apps: RTA taxis start at AED 5–5.50, with Careem and Uber widely used.
And if you ever run low on petrol, CAFU delivers fuel directly to your car, a lifesaver in a sprawling city
Groceries and Essentials
From Carrefour and Lulu to premium outlets like Waitrose and Spinneys, grocery shopping fits every budget:
- Couples: AED 300–700 weekly
- Families: AED 800–1,500 weekly
Online services like Kibsons and rapid-delivery apps such as Instashop bring groceries to your door, often within an hour. Keep a few 5 AED notes on hand for tips.
Schooling: The Big Commitment
Families should factor tuition fees into the budget early:
- Public schools: Around AED 6,000 per year.
- Private/international schools: AED 13,000–21,000+, with elite schools charging more.
KHDA ratings and parent recommendations are key to finding the right fit.
Life Outside of Work
Dubai has something for everyone:
- Sports: Padel tennis (AED 75 per player/hour) and Top Golf (AED 130–220/hour) are popular.
- Cinemas: Around AED 40 a ticket, with 2-for-1 midweek deals from banks like HSBC.
- Dining: From a 12 AED shawarma to a AED 1,000+ fine-dining experience, the city caters to every budget.
Tip: Budget wisely. Apps like The Entertainer and Repeat stretch your money further with 2-for-1 offers and loyalty rewards.
The Takeaway
Dubai’s reality isn’t a fantasy of streets paved with gold, it’s a city built on ambition and opportunity. Living here means balancing costs, setting realistic expectations, and embracing a lifestyle that rewards effort.
For those willing to adapt, Dubai offers more than just sunshine and tax breaks, it offers a chance to build something meaningful in one of the most dynamic cities in the world.
