Cost of Living in Dubai: A Complete Guide for Expats and Newcomers
At Dar Al Tharwa, we receive a lot of questions every day from people curious about living in Dubai. Today, we’re going to answer all your questions about the cost of living in this dynamic city.
Dubai has become a dream destination for many people around the world. Its attractive tax laws, modern lifestyle, and multicultural environment make it one of the most desirable places to live. Even some of the world’s biggest celebrities, like Cristiano Ronaldo, have praised Dubai many times. For example, at the Globe Soccer Awards held in Dubai, Ronaldo said:
“Dubai is one of the best cities in the world. I come here every year and enjoy being here.”
In another interview, he added:
“Dubai is one of my favorite cities; a safe, modern, and energetic place.”
But it’s interesting to know that Dubai wasn’t always this luxurious and developed. Just a few decades ago, it was mainly a desert with very few people living here. No one could have imagined that one day it would grow into such a global hub for business, tourism, and living.
Today, Dubai has become home to many multinational companies, especially in the investment and technology sectors. These companies have helped the city flourish and become a magnet for startups, entrepreneurs, and migrants looking for new opportunities.
One of Dubai’s main attractions is that it doesn’t have personal income tax, which means you get to keep almost all of your earnings. This tax-free environment attracts many people who want to build a better life with more financial freedom.
If you are considering moving to Dubai, it’s important to understand the costs involved in daily living. This includes rent, food, transportation, and other essentials. In this video, we will cover all these costs in detail to help you plan your budget realistically.
Housing is usually the biggest expense. Depending on where you choose to live—whether in more affordable neighborhoods or in upscale areas—the cost can vary a lot. For example, areas like Deira and Bur Dubai are popular among many migrant communities, including Iranians, Afghans, and Pakistanis, offering relatively affordable housing options. Meanwhile, neighborhoods like Dubai Sports City attract a younger, more international crowd.
Food expenses also depend on your lifestyle. Eating out in Dubai can be expensive if you prefer restaurants in luxury malls, but there are many affordable local markets and eateries as well.
Transportation is another important cost to consider. As a new resident, you might not be able to rent a car immediately, so public transport like the Dubai Metro is your best option. The metro is very efficient, with trains arriving every two minutes and connecting most parts of the city. However, taxis are expensive and usually start at a base fare of 25 AED.
Overall, living in Dubai offers many opportunities for both wealthy individuals and middle-class families. With careful budgeting and understanding of the costs, you can enjoy a comfortable and even luxurious lifestyle here.
In the following sections, we will dive deeper into each of these categories, we will be explain in the following.
Accommodation Costs and Dubai’s Neighborhoods
The first and most important expense every newcomer or migrant to Dubai faces is housing. Dubai is a large city with diverse neighborhoods, each having its own characteristics and communities.
Deira: One of Dubai’s older and more affordable areas, where many Iranian, Afghan, and Pakistani migrants live. Due to relatively lower rental prices, Deira is attractive for those looking for more budget-friendly living. Renting a one-bedroom apartment in Deira usually costs between 4,500 to 7,000 AED per month, while a two-bedroom apartment rents for around 7,000 to 12,000 AED.
Barsha and Jebel Ali: These areas are home to many Asian migrants, including Indians, Pakistanis, and Afghans. Barsha, being close to business centers and having moderate prices, is popular among residents. Rental costs in these neighborhoods are similar to Deira but tend to be a bit more upscale with better amenities.
Downtown Dubai and Marina: These are the luxury and modern areas of Dubai, mostly inhabited by Europeans, Americans, and some wealthy Indians and Middle Easterners. Rent here is usually higher, with one-bedroom apartments starting around 9,000 AED per month.
Dubai Sports City: A modern and sporty area in the southwest of Dubai, equipped with diverse sports facilities like a cricket stadium, golf courses, and gyms. This neighborhood appeals mostly to families and people seeking an active and healthy lifestyle. Many Indian, Pakistani, Afghan migrants, and international families live here. Renting a one-bedroom apartment ranges between 5,500 to 8,000 AED, and a two-bedroom between 8,000 to 13,000 AED.
Other neighborhoods: Areas like Palm Jumeirah and Dubai Hills are among the more expensive and luxurious neighborhoods, favored by those seeking a high-end lifestyle and exclusive amenities.
Buying property in Dubai is possible for migrants but requires significant capital. Property prices vary widely depending on the location and size. Generally, small apartments in mid-range areas may start from around 700,000 AED, while large houses and villas in luxury areas can cost several million AED.
A common question is whether renting or buying is better. If you’re new to Dubai and plan to stay only for a few years, renting is usually the more sensible and flexible option. However, if you have long-term plans and the necessary capital, buying property can be a good investment.
