HomeThe Real Deal About Cost of Living in Dubai (What Nobody Actually Tells You)

The Real Deal About Cost of Living in Dubai (What Nobody Actually Tells You)

Q: What's a realistic monthly budget for a single person in Dubai?

Based on actual experience, expect 9,000-12,000 AED monthly for comfortable living including rent in areas like JLT (3,500 AED), food (1,800 AED), metro transport (350 AED), utilities (400 AED), and entertainment (1,200 AED). Budget living starts at 6,000 AED monthly with shared accommodation and home cooking.

Q: Do I really need to pay rent for the entire year upfront in Dubai?

Most landlords require 1-4 post-dated cheques for annual rent, but you don't pay everything upfront. For 48,000 AED annual rent, you might write 4 cheques of 12,000 AED each dated quarterly. Some landlords accept monthly payments with 5-10% premium.

Q: How much money should I bring when moving to Dubai initially?

Bring minimum 15,000-20,000 AED for smooth setup covering DEWA deposit (2,000-4,000 AED), first rent payment, agency commission (5% of annual rent), basic furniture (2,000-5,000 AED), and first month essentials.

Q: Is owning a car necessary in Dubai or can I rely on public transport?

Metro is efficient and costs 350 AED monthly for unlimited pass versus 2,000+ AED monthly for car ownership (payment, insurance, petrol, Salik, parking). Cars are only necessary if you have kids, live far from metro, or your job requires driving.

Q: Why does my electricity bill vary so much between summer and winter?

DEWA bills range from 200 AED in winter to 580 AED in summer due to 24/7 AC usage during June-September when temperatures hit 45°C+. Setting thermostat to 24°C instead of 18°C saves 200 AED monthly in summer.

Q: Can you really live cheaply in Dubai or is that just a myth?

Living on 6,000 AED monthly is possible with shared accommodation in International City (1,500 AED), home cooking (800 AED food), metro transport (350 AED), and free activities. Cheap meals like 8 AED shawarma and 20 AED biryani are readily available.

Q: What areas offer the best value for money for accommodation?

JLT offers best value at 42,000 AED annually for one bedroom with metro access. Deira provides 30,000-45,000 AED for 1BR with traditional atmosphere. International City is cheapest at 18,000-28,000 AED for studios but lacks metro access.

Q: How much does it cost to eat out regularly in Dubai?

Budget meals cost 8-25 AED, mid-range restaurants 40-80 AED per person, nice restaurants 150-300 AED, and fine dining 500-800 AED per person. Spending 700 AED monthly is achievable by mixing cheap eats (60%) with nicer places (40%).

Q: Is Dubai more expensive than London, New York, or Singapore?

Dubai is generally cheaper when factoring zero income tax. A 15,000 AED Dubai salary equals 20,000+ in London after taxes. Metro pass costs 350 AED versus London's £200+. Overall living costs feel lower once adjusted to the system.

byNaz

November 17, 2025

Reading Time: 20 minutes

5/5 - (2 votes)

Table of Contents

💰 Quick Answer: How Much Does It Really Cost to Live in Dubai?

Based on actual living experience, expect to spend 6,000-25,000 AED monthly depending on lifestyle. A comfortable single person’s budget averages around 9,500 AED/month including rent (3,500 AED), food (2,000 AED), transport (350 AED metro pass), utilities (400 AED), and entertainment (1,200 AED). The biggest expense is housing (1,500-10,000 AED monthly depending on area), but zero income tax makes Dubai more affordable than it appears!

⏱️ Read time: 8 minutes | 💡 Includes real monthly budget breakdown

Ok so heres the thing about the cost of living in Dubai…. Let me share what I wish someone had told me before I moved here back in early 2024. Everyone kept saying “Dubai is expensive” or “Dubai is cheap” and tbh both are kinda right? Which I know sounds confusing but stay with me here.

When I first landed at DXB with my two suitcases and honestly way too much excitement, I had this budget spreadsheet that looked perfect on paper. Spoiler alert: that spreadsheet lasted exactly 3 weeks before reality hit different lol. The cost of living in Dubai is like… its not what you expect, and I mean that in both good and bad ways.

✍️ Written by Naz

Your Dubai Insider

As a proud resident of this bustling city for over 4 years, I’ve devoted my time to exploring Dubai’s vibrant cultural life, different ways of living, and endless possibilities. My experiences enable me to guide you through job searches, housing hunts, commuting, and vehicle purchases in Dubai—especially when it comes to understanding the real costs of living here.

📍 Living in Dubai for 4+ years | 🎯 Helping newcomers navigate Dubai life | 💰 Specializing in budget-friendly living tips | 📅 Last Updated: January 2026

→ Read more about my Dubai journey

Understanding the Cost of Living in Dubai Reality Check

First things first – your gonna hear a million different opinions about weather Dubai is affordable or not. After living here for almost 2 years now, I can tell you the cost of living in Dubai really depends on YOUR lifestyle choices. Like fr, I know people spending 3000 AED per month and people dropping 50,000 AED monthly, and there both “comfortable” in there own way.

The thing is, Dubai has this weird split personality when it comes to expenses. Some stuff is ridiculously cheap (like fuel – I’m talking 2.5 AED per liter which is insane compared to Europe) and other things will make ur wallet cry (housing, I’m looking at you).

Breaking Down the Cost of Living in Dubai: Housing Edition

Alright so housing is probably gonna be your biggest expense and this is where the cost of living in Dubai gets real serious real fast. When I first started apartment hunting, I made the mistake of only looking at monthly rent prices. Nobody told me about the whole “pay for the entire year upfront” thing until I was already here 😅

Studio Apartments:

Dubai Marina: 45,000-75,000 AED/year
JLT (Jumeirah Lake Towers): 35,000-50,000 AED/year
International City: 18,000-28,000 AED/year

One Bedroom:

Downtown Dubai: 80,000-120,000 AED/year
Business Bay: 55,000-85,000 AED/year
Deira: 30,000-45,000 AED/year

📊 Housing Costs Across Dubai Neighborhoods (Annual Rent in AED)

Neighborhood	Studio	1 Bedroom	Quality	Metro Access
Dubai Marina	45,000-75,000	80,000-120,000	Premium	Yes (Red Line)
JLT (Jumeirah Lake Towers)	35,000-50,000	55,000-85,000	Good	Yes (Red Line)
Downtown Dubai	70,000-100,000	80,000-120,000	Premium	Yes (Red Line)
Business Bay	40,000-60,000	55,000-85,000	Good to Premium	Yes (Red Line)
Deira	25,000-35,000	30,000-45,000	Basic to Good	Yes (Green Line)
International City	18,000-28,000	25,000-40,000	Basic	No (Bus only)

💡 Note: Prices based on November 2025 market rates. DEWA deposit (2,000-4,000 AED) and agency commission (5% of annual rent) are additional costs not included in these figures.

I ended up in JLT paying 42,000 AED annually for a decent one bedroom, and honestly its not bad. But that upfront payment? That was a shock to my system. Most landlords want 1-4 cheques (post-dated), and the cost of living in Dubai suddenly felt very real when I had to write that first check.

Pro tip I learned the hard way: DEWA (Dubai Electricity and Water Authority) requires a deposit thats seperate from rent, usually around 2000-4000 AED depending on your place. Add that to your moving costs because nobody warns you about it.

Cost of Living in Dubai

Food and Groceries: The Cost of Living in Dubai Gets Complicated

Ngl this is where things get interesting. The cost of living in Dubai for food can be whatever you make it. I’ve had weeks where I spent 150 AED on groceries and weeks where I dropped 800 AED without even trying.

Grocery Shopping Reality:

Carrefour/Lulu monthly shop: 800-1200 AED (for one person eating at home mostly)
Fresh produce from local markets: SO much cheaper than supermarkets
Imported stuff: prepare to pay 3x what you’d pay back home
Local/regional products: actually pretty affordable

My typical monthly food budget breaks down like this:

Groceries: 900 AED
Eating out (2-3 times per week): 600-800 AED
Coffee shops (my weakness tbh): 300 AED
Random snacks and stuff: 200 AED

Total: around 2000-2200 AED monthly

But here’s something cool about the cost of living in Dubai food scene – you can get amazing shawarma for 5-8 AED, incredible biryani for 15-20 AED, and there’s litterally every cuisine imaginable. I probably eat better here than I did back home even though I thought it would be more expensive.

Transportation and the Cost of Living in Dubai Streets

Ok transportation here is actually one area where the cost of living in Dubai is pretty reasonable. Like seriously, compared to housing this is where you catch a break.

Metro/Bus:

Monthly unlimited pass: 350 AED (I use this)
Pay as you go: varies but usually 3-8 AED per trip
The metro is clean, fast, and honestly one of my favorite things about Dubai

Taxis/Ride-sharing:

Careem/Uber are everywhere
Average trip around the city: 20-40 AED
Airport to Marina: around 80-100 AED

Owning a Car: This is where I messed up initially. I bought a used car thinking it would save money on the cost of living in Dubai but then:

Car payment: 1200 AED/month (if financing)
Insurance: 2500-4000 AED/year
Petrol: 200-300 AED/month (really cheap tho)
Parking: some areas charge, some dont
Salik (toll gates): adds up quick if ur commuting

Honestly? For my lifestyle, the metro + occasional Careem made more sense. I sold the car after 8 months and my cost of living in Dubai dropped significantly. But if you have kids or live far from metro stations, you might need one.

Cost of Living in Dubai

Utilities and Bills: The Hidden Cost of Living in Dubai Factors

So this is something people dont talk about enough when discussing the cost of living in Dubai. Your monthly bills can vary ALOT depending on how much AC you use (and trust me, you’ll use it).

My Monthly Bills:

DEWA (electricity + water): 250-600 AED (summer is brutal, winter is chill)
Internet: 350 AED (I got the good package for work from home)
Mobile phone: 150-200 AED
Streaming services: 100 AED
Building maintenance fees: included in rent usually

📊 Complete Bills Breakdown: What You’ll Actually Pay Monthly

Bill Type	Winter (Nov-Mar)	Summer (Jun-Sep)	Payment
DEWA (Electricity + Water)	200-350 AED	400-600 AED	Monthly (auto-debit)
DEWA Deposit (one-time)	2,000-4,000 AED		Initial setup (refundable)
Internet (du or Etisalat)	250-500 AED		Monthly (contract)
Mobile Phone Plan	100-300 AED		Monthly (prepaid/postpaid)
Chiller/AC Charges (if separate)	200-400 AED	500-800 AED	Monthly (some buildings)
Building Maintenance Fee	Usually included in rent		Annual (check contract)
Parking (if separate)	200-500 AED		Monthly or annual
Salik (Toll Tags)	50-300 AED		As used (if you have car)
Streaming Services	50-150 AED		Monthly (Netflix, OSN, etc.)

⚡ Pro Tip: The summer DEWA bill shock is REAL. My bill jumped from 250 AED in February to 580 AED in August because AC runs 24/7. Set your thermostat to 24°C instead of 18°C and you’ll save like 200 AED monthly in summer. Trust me on this one lol.

Summer months (June-September) are when the cost of living in Dubai utilities go crazy because AC runs 24/7. My DEWA bill hit 580 AED in August and I nearly died lol. But in winter (December-February) it drops to like 200 AED because you barely need AC.

Entertainment and Social Life Costs

Here’s where the cost of living in Dubai can really vary based on what kind of person you are. This city has everything from free beaches to clubs where a table costs 5000 AED (no joke).

Budget-Friendly Fun:

Beach days: FREE (Kite Beach, JBR, La Mer)
Dubai Mall wandering: FREE and AC is perfection
Dubai Fountain show: FREE
Public parks and outdoor spaces: mostly free

Mid-Range Entertainment:

Cinema tickets: 35-55 AED
Brunch (the Dubai obsession): 150-350 AED
Gym membership: 200-500 AED/month
Desert safari: 150-250 AED

Splurge Activities:

Burj Khalifa tickets: 149-379 AED
Beach clubs: 150-300 AED minimum spend
Fine dining: 300-800 AED per person
Theme parks: 295+ AED

The cost of living in Dubai socially is managable if you balance things. I do free stuff 60% of the time, mid-range stuff 30%, and splurge maybe 10%. Works out to around 1000-1500 AED monthly for entertainment.

Healthcare and Insurance Impact on Cost of Living in Dubai

This is HUGE and affects the overall cost of living in Dubai more than people realize. Health insurance is mandatory here, and quality matters.

Most companies provide insurance, but if your self-employed or your company gives basic coverage, you’ll need to upgrade. My company insurance is decent but I still pay out of pocket sometimes:

Specialist visits: 150-300 AED
Pharmacy costs: varies wildly
Dental work: NOT usually covered, expect to pay alot
Optometry: also usually extra

If you need to buy your own insurance, expect 5000-15000 AED annually depending on coverage. This definitely impacts the cost of living in Dubai calculation.

Cost of Living in Dubai

Kids and Family: How It Changes the Cost of Living in Dubai

I dont have kids but my colleagues do, and tbh the cost of living in Dubai with children is on another level entirely.

School Fees:

Nursery: 20,000-40,000 AED/year
Primary school: 30,000-80,000 AED/year
Secondary school: 50,000-100,000+ AED/year

Plus activities, uniforms, books, transport… it adds up fast. Families I know budget 100,000-200,000 AED annually just for schooling. That’s not including the bigger housing they need (adding 30,000-50,000 AED to yearly rent) or increased food and entertainment costs.

The cost of living in Dubai for families is probably double or triple what it is for singles, maybe even more depending on school choices.

Shopping and Personal Expenses

Shopping here affects the cost of living in Dubai differently for everyone. The sales are insane (Dubai Shopping Festival, Dubai Summer Surprises) but you can also spend money really fast.

My Monthly Shopping:

Clothes/personal items: 300-800 AED (varies alot)
Toiletries/basics: 150-200 AED
Random stuff: 200-400 AED

The crazy thing about the cost of living in Dubai shopping scene is electronics are often cheaper than Europe/US because of no VAT on most items… wait no, there IS 5% VAT now but its still less than most places. You can get really good deals on phones, laptops, cameras.

Clothes are weird – local brands and stuff from nearby countries are affordable, but Western brands can be pricy. I’ve learned to shop the sales and honestly Dragon Mart is your friend for cheap everything (but check quality first lol).

The Real Numbers: My Actual Cost of Living in Dubai

Ok so after all that rambling, let me break down my actual monthly expenses as a single person living pretty comfortably in Dubai:

Fixed Costs:

Rent: 3,500 AED (42k/year divided by 12)
Internet: 350 AED
Phone: 180 AED
DEWA: 400 AED (average)
Metro pass: 350 AED

Variable Costs:

Groceries: 900 AED
Eating out: 700 AED
Entertainment: 1,200 AED
Shopping/personal: 500 AED
Savings/emergency: 1,500 AED

📊 Real Monthly Budget: Single Person Living Comfortably in Dubai

Expense Category	Monthly Cost (AED)	% of Budget	Notes
Rent (JLT 1BR)	3,500	37%	42,000 AED annual ÷ 12 months
Groceries	900	9%	Carrefour/Lulu, cooking at home mostly
Eating Out	700	7%	2-3 times per week, mix of cheap and mid-range
DEWA (Utilities)	400	4%	Average (250-600 AED seasonal variation)
Internet	350	4%	Good package for work from home
Metro Pass	350	4%	Unlimited monthly pass (Red Line)
Coffee Shops	300	3%	My weakness tbh, 15 AED average per coffee
Random Snacks	200	2%	Convenience store runs, vending machines
Mobile Phone	180	2%	Mid-range plan with data
Entertainment	1,200	13%	Cinema, beaches, malls, occasional splurges
Shopping/Personal	500	5%	Clothes, toiletries, random purchases
Streaming Services	100	1%	Netflix, Spotify, etc.
Savings/Emergency Fund	1,500	16%	Always save something, trust me
TOTAL MONTHLY	9,580	100%	Comfortable lifestyle

💡 Note: This is MY actual budget as a single person in JLT. Your costs will vary based on location, lifestyle, and personal choices. Budget assumes no car ownership and moderate entertainment spending.

Total: approximately 9,580 AED per month

But this is just ME. The cost of living in Dubai for you might be totally different. I know people living on 6,000 AED monthly (roomates, cooking at home, limited going out) and people spending 25,000 AED monthly easy.

📊 Dubai Cost of Living by Lifestyle: Budget vs Comfortable vs Luxury

Expense	Budget Living	Comfortable	Luxury
Accommodation	Shared room/studio 1,500-2,500 AED	1BR in JLT/Deira 3,000-4,500 AED	2BR Marina/Downtown 8,000-15,000 AED
Food Total	Home cooking + cheap eats 800-1,200 AED	Mix cooking/dining out 1,800-2,500 AED	Regular fine dining 4,000-8,000 AED
Transport	Metro + bus only 300-400 AED	Metro + occasional Careem 500-800 AED	Own car + taxis 2,000-3,500 AED
Utilities	Minimal AC usage 250-400 AED	Moderate AC 400-600 AED	AC 24/7 + larger space 800-1,500 AED
Entertainment	Free activities mainly 300-600 AED	Mix free/paid events 1,000-1,500 AED	Beach clubs, brunches 3,000-6,000 AED
Internet + Phone	Basic packages 300-400 AED	Good packages 500-600 AED	Premium unlimited 800-1,200 AED
Shopping/Personal	Necessities only 300-500 AED	Moderate shopping 600-1,000 AED	Regular retail therapy 2,000-5,000 AED
TOTAL MONTHLY	5,000-7,000	9,000-12,000	22,000-40,000

💡 Real Talk: I know people living at each level and tbh they’re all happy in their own way. The budget lifestyle means roommates and lots of home cooking but you’re still in Dubai. The luxury lifestyle is Instagram-worthy but honestly you get used to it fast and it becomes the new normal lol.

Tips for Managing the Cost of Living in Dubai

After nearly 2 years here, these are my best tips for keeping the cost of living in Dubai managable:

Housing: Don’t live beyond your means just for a fancy address. Nobody cares after the first month anyway.
Transport: Metro is your best friend. Seriously consider if you actually need a car.
Food: Learn to cook, shop at local markets, and save eating out for special occasions or socializing.
Entertainment: Free beach days are just as good as expensive beach clubs tbh. Mix it up.
Shopping: Wait for sales, use discount apps (Entertainer, Groupon, etc.), and dont impulse buy just because something is “duty free.”
Bills: Monitor your AC usage. Set it to 24°C instead of 18°C and watch your DEWA bill drop.
Banking: Get a bank account with no fees. Some banks here charge for everything and it adds up.

The cost of living in Dubai is absolutely managable if you plan properly and dont try to live like the Instagram influencers you see everywhere lol.

💎 Pro Tips: Mastering Your Dubai Budget (Learned the Hard Way)

🏠 Skip the Fancy Address Tax

Pro tip: Don’t pay 75,000 AED for Dubai Marina when JLT next door offers similar quality for 42,000 AED. I made this switch after 6 months and nobody even noticed tbh, but my wallet definitely did. That’s 33,000 AED saved annually just by moving 10 minutes away.

💰 Real savings: 2,750 AED monthly just on rent difference

🚇 Metro > Car for Most People

Smart move: I sold my car after 8 months and saved 1,500+ AED monthly. Between the 350 AED metro pass and occasional 30 AED Careem rides, I’m spending maybe 600 AED total on transport vs 2,000+ AED with car payments, insurance, Salik, and parking. Plus no stress about finding parking in Marina lol.

⚡ Monthly savings: 1,400 AED minimum by ditching the car

❄️ The AC Temperature Trick

Worth noting: Setting your AC to 24°C instead of 18°C literally cut my summer DEWA bill from 580 AED to 380 AED. That’s 200 AED saved monthly during peak summer just by being slightly less freezing. Also invest in blackout curtains—they’re like 150 AED one-time but keep your place cooler naturally.

🌡️ Summer bill difference: 200 AED monthly (2,400 AED annually)

🥙 Master the Cheap Eats Map

Game changer: You can eat amazing food for 15-25 AED if you know where to go. My go-to spots are Bur Dubai for 8 AED shawarma, Karama for 20 AED biryani, and Dragon Mart for 12 AED noodles. Save the 300 AED restaurants for special occasions. I went from spending 2,500 AED monthly on food to 2,000 AED just by mixing cheap eats with cooking.

🍽️ Monthly food savings: 500 AED by balancing cheap eats and home cooking

💳 Abuse the Sales Cycles

Insider knowledge: Dubai Shopping Festival (January), Dubai Summer Surprises (July-August), and Black Friday are when you stock up on everything. I bought my laptop during DSF for 40% off and saved 2,000 AED. Even groceries go on sale—Carrefour and Lulu have weekly offers that can cut your grocery bill by 20-30%.

🛍️ Average savings: 500-1,000 AED monthly by timing purchases right

🏖️ Free Entertainment is Actually Great

Real talk: Beach clubs charging 200 AED minimum spend are overrated when Kite Beach is free and honestly just as nice. I do 3 free activities (beach, Dubai Mall, parks) for every 1 paid activity (cinema, restaurants, attractions) and my entertainment budget dropped from 2,000 AED to 1,200 AED monthly without feeling deprived at all.

🎯 Entertainment savings: 800 AED monthly by mixing free and paid activities

📱 Get a No-Fee Bank Account

Critical tip: Some banks here charge 25 AED monthly for account maintenance, 10 AED for ATM withdrawals from other banks, 50 AED for international transfers—it adds up to 500+ AED annually in random fees. Switch to banks like Emirates NBD or Mashreq that offer free accounts with salary transfer. Takes one afternoon, saves you real money.

💸 Hidden cost eliminated: 500 AED annually in banking fees

🏡 The Upfront Costs Nobody Warns You About

Must know: Come with at least 15,000-20,000 AED saved for initial setup costs. You’ll need 2,000-4,000 AED for DEWA deposit, 5% agency commission (that’s 2,100 AED on a 42,000 AED apartment), first rent cheque, and basic furniture. I underestimated this and had to borrow money from friends my first month—not fun. Budget properly from day one.

💰 Essential starting capital: 15,000-20,000 AED minimum for smooth setup

Is the Cost of Living in Dubai Worth It?

This is probably the question everyone actually wants answered. For me? Yes, but with conditions.

The cost of living in Dubai is higher than many places but lower than cities like London, New York, or Singapore. What you get for that money is:

Zero income tax (THIS IS HUGE)
Safety and security
Amazing weather 8 months of the year
Incredible food diversity
Great infrastructure
International community

When you factor in the no income tax thing, the cost of living in Dubai actually becomes more reasonable. Like if your making 15,000 AED monthly here, that’s equivalent to making maybe 20,000+ in a country with 30% income tax.

But its not for everyone. If you hate heat, need seasons, or want a slower pace of life, the cost of living in Dubai might not feel worth it regardless of the money situation.

❓ Frequently Asked Questions About Cost of Living in Dubai

What’s a realistic monthly budget for a single person in Dubai?
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Based on my actual experience living here, you can live comfortably on 9,000-12,000 AED monthly as a single person. This includes rent in a decent area like JLT (3,500 AED), food (1,800 AED), transport via metro (350 AED), utilities (400 AED), and entertainment (1,200 AED). Tbh if you’re willing to share accommodation and cook at home more, you could go as low as 6,000 AED monthly, but 9,500 AED is my sweet spot for not feeling restricted. The zero income tax thing makes this more affordable than equivalent cities with similar costs.

Do I really need to pay rent for the entire year upfront in Dubai?
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Ngl this was the biggest shock when I first moved here. Most landlords want 1-4 post-dated cheques for the year, but the good news is you don’t hand over all the money at once—you just write cheques dated for future months. So if your rent is 48,000 AED annually, you might write 4 cheques for 12,000 AED each dated quarterly. The challenge is having the money in your account when those cheques come due. Some landlords will accept monthly payments but expect to pay 5-10% more for that flexibility. Plan your budget around these large cheque payments.

How much money should I bring when moving to Dubai initially?
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From my experience and seeing others move here, bring at least 15,000-20,000 AED minimum for a smooth start. Here’s why: you’ll need DEWA deposit (2,000-4,000 AED), first rent payment or cheque (usually 1-3 months worth), agency commission if using an agent (5% of annual rent), basic furniture if place is unfurnished (2,000-5,000 AED), food and essentials for first month (1,500 AED), and buffer for unexpected costs. I came with 12,000 AED and had to borrow money from friends which was super stressful. Better to have too much than scrambling in your first weeks.

Is owning a car necessary in Dubai or can I rely on public transport?
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Honestly? I bought a car, regretted it, and sold it after 8 months lol. The metro in Dubai is clean, efficient, and covers major areas. I now spend 350 AED on unlimited metro pass plus maybe 250 AED on occasional Careem rides (total 600 AED monthly) versus 2,000+ AED monthly when I had a car (payment, insurance, petrol, Salik, parking). If you live near a metro station and your office is metro-accessible, skip the car. Only get one if you have kids, live far from metro, or your job requires driving. The cost difference is massive and Dubai traffic can be brutal tbh.

Why does my electricity bill vary so much between summer and winter?
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The AC situation in Dubai is no joke fr. My DEWA bill goes from 200 AED in February to 580 AED in August because air conditioning runs 24/7 during summer months. June through September are brutal—temperatures hit 45°C+ so you literally cannot turn off AC without melting. Winter months (December-March) are amazing though, you barely need AC and bills drop dramatically. Pro tip that saved me money: set thermostat to 24°C instead of 18°C in summer. Yeah it’s slightly less Arctic but you’ll save 200 AED monthly easy. Also close curtains during day to keep heat out.

Can you really live cheaply in Dubai or is that just a myth?
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It’s absolutely possible but you need to be strategic. I know people living on 6,000 AED monthly—they share rooms in International City (1,500 AED), cook Indian/Pakistani meals at home (800 AED food budget), use metro exclusively (350 AED), and do free activities (beaches, parks, Dubai Mall window shopping). You can get amazing shawarma for 8 AED, biryani for 20 AED, and groceries from local markets are way cheaper than Carrefour. The trick is avoiding the Instagram lifestyle trap. Dubai CAN be cheap if you make smart choices, but it’s also really easy to blow money on fancy restaurants and beach clubs if you’re not careful.

What areas offer the best value for money for accommodation?
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For best value, I’d say JLT (Jumeirah Lake Towers), Deira, or certain parts of Business Bay. JLT is where I live now—42,000 AED annually for a decent one bedroom with metro access, close to Marina but 30,000 AED cheaper. Deira is even more affordable (30,000-45,000 AED for 1BR) with great access to old Dubai and metro, though it’s more traditional and less modern. International City is cheapest (18,000-28,000 AED for studios) but far from everything and no metro. Avoid paying premium for Dubai Marina or Downtown unless money isn’t an issue—you’re paying for the address more than actual quality difference tbh.

How much does it cost to eat out regularly in Dubai?
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It varies wildly depending on where you go. Budget meals (shawarma, biryani, noodles) cost 8-25 AED. Mid-range restaurants (casual dining chains, local spots) are 40-80 AED per person. Nice restaurants hit 150-300 AED per person. Fine dining can easily reach 500-800 AED per person. I eat out 2-3 times weekly and spend around 700 AED monthly by mixing cheap eats (60% of the time) with nicer places (40%). Dubai has incredible food diversity at all price points. My strategy is cheap lunches during the week, nicer dinners on weekends. This way I enjoy the food scene without destroying my budget lol.

Is Dubai more expensive than London, New York, or Singapore?
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Dubai is generally cheaper than those cities when you factor in zero income tax. Yeah, rent in prime areas (Marina, Downtown) is comparable to these cities, but remember—if you earn 15,000 AED in Dubai, that’s your take-home. In London that same salary equivalent gets taxed 30-40%, so you’d need to earn 20,000+ to match Dubai’s 15,000 AED take-home. Food and entertainment can be cheaper or pricier depending on choices. Transport is definitely cheaper (350 AED metro pass vs London’s £200+). Overall cost of living feels lower in Dubai once you adjust to the system and avoid the luxury lifestyle trap. Plus weather is way better 8 months of the year lol.

What hidden costs should I know about before moving to Dubai?
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DEWA deposit is the big one nobody mentions—2,000-4,000 AED that you pay upfront and get back when you leave. Real estate agency commission (5% of annual rent) adds up fast. Ejari registration fee (around 200 AED) for your tenancy contract. Some buildings have separate chiller charges for AC that can add 400-800 AED monthly in summer. Banking fees if you don’t get a free account. Parking fees in some areas. Salik toll charges if you drive (4 AED per gate crossing). The summer electricity bill spike is brutal—my bill literally doubled from winter to summer. Budget an extra 3,000-5,000 AED for these “surprises” when you first arrive.

How much does healthcare and insurance add to monthly costs?
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Health insurance is mandatory in Dubai. Most companies provide basic coverage which is great, but if you’re self-employed or need to buy your own, expect 5,000-15,000 AED annually depending on coverage level. Even with insurance, specialist visits cost 150-300 AED out of pocket, and dental work isn’t usually covered (which sucks tbh, dental costs are HIGH). Pharmacy costs vary—generic medicines are affordable but branded stuff gets pricey. I budget around 200-300 AED monthly for random medical expenses even with company insurance. If you have pre-existing conditions or need regular medical care, get the best insurance you can afford because medical costs here can add up fast without good coverage.

What salary do I need to live comfortably in Dubai?
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For comfortable living as a single person, I’d say minimum 12,000-15,000 AED monthly. This gives you decent accommodation (3,000-4,500 AED), good food (2,000-2,500 AED), transport (500-800 AED), entertainment (1,500 AED), and savings. You CAN survive on 8,000-10,000 AED but you’ll need to be careful with spending. If you have a family, add 5,000-10,000 AED per child for schools, activities, and increased living costs. For luxury lifestyle (Marina penthouse, regular fine dining, beach clubs), you’re looking at 25,000+ AED monthly. Remember zero income tax means these numbers go further than they would in taxed countries. A 15,000 AED salary in Dubai feels like 20,000+ elsewhere after taxes.

How expensive is it to raise kids in Dubai with school fees?
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School fees in Dubai are honestly no joke—this is where costs really jump. Nursery runs 20,000-40,000 AED annually, primary school is 30,000-80,000 AED, and secondary school can hit 50,000-100,000+ AED per year per child. Plus uniforms, books, activities, and transportation add another 5,000-10,000 AED annually. My colleagues with two kids easily spend 150,000-250,000 AED yearly just on education. You also need bigger accommodation (adding 30,000-50,000 AED to rent), more food, more entertainment. Budget at least an additional 200,000-300,000 AED annually per child if you want decent schools. Some companies provide education allowance which helps massively. Families definitely need higher salaries—I’d say minimum 25,000-30,000 AED monthly for comfortable family life with kids in school.

Can I save money while living in Dubai or will I just break even?
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You can definitely save money in Dubai—the zero income tax makes a huge difference. I manage to save around 1,500-2,000 AED monthly on a 12,000 AED salary which is about 15% savings rate. People I know on higher salaries (20,000+ AED) save 30-40% because rent doesn’t scale linearly with income. The key is avoiding lifestyle inflation—just because you earn more doesn’t mean you need to move to a fancier area or eat at expensive restaurants constantly. Set up automatic transfers to savings account on payday. Use the Dubai Sales (DSF, DSS) for big purchases. Cook at home 60-70% of the time. Skip the car if possible. With discipline, saving 20-30% of income is very achievable in Dubai, which is honestly better than most Western cities where taxes eat 30-40% before you even see your paycheck.

What’s the biggest money mistake people make when moving to Dubai?
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The biggest mistake is lifestyle inflation—trying to live the Instagram Dubai lifestyle immediately. People get here, see fancy cars and beach clubs everywhere, and blow their entire salary trying to keep up. I’ve seen people earning 15,000 AED spending 12,000 AED on rent alone just to have a Marina address. Second biggest mistake is not budgeting for upfront costs—coming here with only 5,000 AED and getting shocked by DEWA deposits and agency fees. Third is buying a car without calculating total costs (insurance, Salik, parking adds up fast). My advice: live below your means for the first 3-6 months until you figure out the real cost of living in Dubai. Focus on experiences over status symbols. The free beaches are just as nice as 300 AED beach clubs tbh.

Cost of Living in Dubai

Final Thoughts on Cost of Living in Dubai

Look, I’m not gonna lie to you – moving to Dubai was financially scary at first. The cost of living in Dubai seemed overwhelming when I was planning from abroad. But once you’re here and figure out the system, its really not that bad.

You learn where to save (housing location, transport, groceries) and where to splurge (experiences, good food, travel). The cost of living in Dubai becomes less about the actual numbers and more about the lifestyle you choose to live.

My biggest advice? Come with at least 15,000-20,000 AED saved for initial costs (deposit, DEWA, furniture basics, first month expenses). Give yourself 3-6 months to adjust and figure out your personal cost of living in Dubai. Don’t compare yourself to others because everyone’s situation is different.

And honestly? The cost of living in Dubai is one of those things that looks scary on paper but works out better in reality if you’re smart about it. Just dont try to keep up with the Kardashians (or the Dubai equivalent) and you’ll be fine.

✨ Key Takeaways: Your Dubai Cost of Living Cheat Sheet

Budget Smart: Comfortable living costs 9,000-12,000 AED monthly for singles, but you can go as low as 6,000 AED with shared accommodation and home cooking. Zero income tax makes these numbers work better than they look on paper.
Location Matters: JLT offers incredible value at 42,000 AED annually for 1BR—30,000 AED cheaper than Marina next door with same metro access and lifestyle. Don’t pay premium just for a fancy address tbh.
Skip the Car: Metro unlimited pass (350 AED) plus occasional Careem rides (200-300 AED) beats car ownership (2,000+ AED monthly) for most people. Only get a car if you actually need one for kids or job requirements.
Manage the AC Bill: Summer DEWA bills can hit 580 AED compared to 200 AED in winter. Set thermostat to 24°C instead of 18°C to save 200 AED monthly. Blackout curtains are your friend fr.
Come Prepared: Bring 15,000-20,000 AED for initial setup costs including DEWA deposit (2,000-4,000 AED), agency commission (5% of annual rent), and first month expenses. Underestimating this causes serious stress.
Food Strategy: Mix cheap eats (8 AED shawarma, 20 AED biryani) with home cooking and save restaurants for special occasions. You can eat amazing food without destroying your budget if you know where to go.
Free Entertainment Rocks: Beaches, parks, Dubai Mall, and public spaces are free and honestly just as enjoyable as expensive beach clubs. Mix 3 free activities with 1 paid activity to keep entertainment budget around 1,000-1,500 AED monthly.
Family Costs Are Different: Add 200,000-300,000 AED annually per child for school fees, activities, bigger housing, and increased living expenses. Families need significantly higher salaries (25,000-30,000 AED minimum) for comfortable living.

💰 Bottom Line: Dubai is Affordable… If You’re Smart About It

The cost of living in Dubai isn’t actually that scary once you figure out the system. Zero income tax, strategic location choices, smart transport decisions, and avoiding lifestyle inflation make it totally manageable. Live YOUR lifestyle, not the Instagram Dubai lifestyle, and you’ll do great. Give yourself 3-6 months to adjust and honestly? You’ll probably love it here. Just don’t try to keep up with people driving Lamborghinis lol—they’re playing a different game entirely 😅

P.S. This info is from November 2025 but tbh things change fast in Dubai so double check everything! And if ur reading this later… hope things have gotten even better lol. Feel free to reach out if you have questions about the cost of living in Dubai – I’ve made enough mistakes for both of us 😅

byNaz

Published November 17, 2025