Dubai cost of living: A cost overview

Dubai is rightly one of the most popular emigration destinations for Germans and also attracts thousands of expats. But what does it actually cost to live in Dubai? Find out in the following blog post.

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Table of contents

The most important facts in brief
General information about the United Arab Emirates
Economy
How much does it cost to live in Dubai?
Rental prices in Dubai
Electricity, water and gas costs
Supermarkets and food prices
Internet and cell phone
Public transportation
Leisure costs in Dubai
Restaurants and cafés
Shopping and entertainment
Sports and fitness
Education and health
Conclusion
FAQ
How much money do I need per month to live in Dubai?General information about the United Arab Emirates
Economy
How much will it cost me to live in Dubai?
Rental price trends in Dubai
Electricity, water and gas costs
Supermarkets and food prices

The most important facts in brief

• Rental prices in Dubai vary greatly and depend on the type of apartment and the location chosen. In addition, rental prices are expected to increase by an average of 3 to 5 % over the course of 2024.
• When renting, you should also note that the rental prices quoted are usually the basic rent. Electricity, water and gas are not included.
• Due to the high temperatures, air conditioning systems are in great demand, but they consume a lot of energy. Energy costs are therefore one of the highest monthly expenses alongside rent.
• Food prices are not subject to as much fluctuation, but are still slightly higher than in Germany. Internet and cell phone costs are also slightly more expensive than in Germany.
• However, how much money you actually spend each month depends on your personal lifestyle.

General information about the United Arab Emirates

The UAE consists of a total of 7 emirates: Abu Dhabi (capital), Dubai, Shrjah, Ajman, Umm Al Qaiwain, Ras Al Khaimah and Fujairah. Each of these emirates is either assigned to the jurisdiction of an emir or is an independent state.

Good to know: An emir means a prince or ruler who has authority over a territory (an emirate). A caliph, on the other hand, is the ruler of an independent Islamic state.

Economy

Economic life in the UAE, and in Dubai in particular, is undoubtedly characterized by a very special dynamic. For example, Dubai is one of the most important trade and financial centers in the world and has a very special appeal, especially for international founders and entrepreneurs.

Dubai offers a wide range of economic opportunities across a broad spectrum of industries. These include construction, retail, real estate and tourism.

Dubai owes its economic growth to the government, which has supported the emirate with subsidies and investments.

The government began early on to diversify the economy in order to make Dubai more attractive to international investors. In addition, small and medium-sized enterprises in particular are being promoted in order to further boost the economy.

Dubai's economy also benefits from the booming tourism industry, which attracts thousands of people to the emirate every year. The government has therefore also invested in the tourism sector in order to finance the construction of theme parks, luxury hotels and shopping centers.

Good to know: The Emirate of Dubai enjoyed massive economic growth until around 2008. However, this development changed due to the financial crisis. The construction boom slowed down and the depletion of oil reserves also led to tensions. As a result, Dubai has always focused on tourism.

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How much will it cost me to live in Dubai?

The first question that probably comes to mind when you think about the cost of living in Dubai is the price of rent.

However, it is not possible to give a blanket answer to this question, as rental prices vary greatly depending on the size and location of the apartment. It is also expected that rents will increase by around 3 to 5 % this year compared to last year.

However, it is fair to say that your rent for an apartment, house or gated residence will most likely make up a large part of your monthly expenses if you decide to emigrate to the UAE.

The following list is therefore intended to give you a rough overview of the costs you can expect if you buy an apartment with 1 to 3 rooms:

• Studio apartment: AED 50,000 - 60,000 per year
• 1-room apartment: AED 70,000 - 90,000 per year
• 2-room apartment: 90,000 - 120,000 AED per year
• 3-room apartment: AED 120,000 - 200,000 per year

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Rental price development in Dubai

In Dubai, strong fluctuations in rental prices have been observed in recent years. The government has therefore taken measures to restore the balance between supply and demand.

For example, new residential construction projects and the availability of more workers have helped to stabilize rental prices. The tourism industry has also had a strong influence on the development of rental prices.

This is because it is becoming increasingly common for tourists to opt for a rental apartment instead of a hotel for the duration of their stay. This has also led to an increase in demand for apartments and therefore also in rental prices.

Electricity, water and gas costs

We have already explained the rental costs that you will incur when buying an apartment. However, you should bear in mind that the prices we have just mentioned are the basic rent. Electricity, water and gas costs are not included.

These are generally more expensive than in Germany. This can be explained by the fact that temperatures in Dubai are many times warmer than in Europe and air conditioning systems are therefore used more frequently, which leads to higher energy consumption.

As far as heating costs are concerned, however, you won't have to pay much, as Dubai has central heating and air conditioning.

The competent authority that you must contact regarding these issues is DEWA.

Good to know: It can happen that the costs for air conditioning are already included in the rental costs. Therefore, look out for the description Chiller-Free in apartment advertisements.

Supermarkets and food prices

In terms of groceries, Dubai tends to remain constant in comparison to rental prices. As in Germany, there are countless supermarkets where you can cover your daily needs. On average, you will pay the following for basic foodstuffs:

1 kg chicken: 25 AED/ 6,52 €

500 g bread: 5 AED/ 1,25 €

1 liter of milk: 5 AED/ 1,25 €

1 kg rice: 10 AED/ 2,50 €

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Vegetables and other animal products are also available at good prices. However, the best value for money can be found at the Dubai discounters GALA and VIVA, which are comparable to the German supermarket chains LIDL and ALDI.

There are also local food markets where you can buy regional and seasonal products. On average, however, the prices for food are slightly higher than in Germany.

Good to know: There are also fish markets in Dubai where it is common to haggle, so you can save yourself some money with good bargaining skills.

Internet and cell phone

Compared to Germany, you have to dig deeper into your wallet for your Internet access and cell phone. On average, you pay up to AED 500 per month for an internet and telecommunications contract.

These services are offered by DU or Etisalat. However, to counteract these costs somewhat, you can use the free WLAN in public places such as cafés.

Public transportation

The public transport network in Dubai is not particularly well developed. Although there are streetcars, buses and a metro, most people rely on cars or cabs to get from A to B.

If you still want to use public transport, a single journey costs between AED 2 and AED 5, while a monthly subscription costs around AED 150. Of course, you are also free to travel by bicycle.

Leisure costs in Dubai

Dubai is a city full of endless possibilities and offers a variety of activities for every taste and budget:

Restaurant and café visits

The catering industry in Dubai is very diverse, as many international cuisines are represented in the emirate in the form of restaurants and cafés. Therefore, the prices for a meal can also vary greatly.

However, you can get a good meal for around AED 200. However, if you opt for more upmarket cuisine, your dinner can easily cost AED 1000 or more.

If you are not very hungry, there are also numerous cafés in Dubai that you can visit. A cup of coffee or tea costs between AED 18 and 30. The same applies to small snacks.

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Shopping and entertainment

Dubai has countless shopping centers and is a paradise for shopping enthusiasts. Dubai is also home to the largest shopping center in the world - the Dubai Mall. Here you will find all the well-known designers and European brands are also represented here.

However, you should be aware that prices can be up to 30% higher than the German average. It can therefore quickly happen that you spend more money than originally planned.

In terms of entertainment, there are at least as many options in Dubai. One example of this is Dubai Parks and Resorts.

These consist of 4 theme parks that have something to offer for every age group. Entrance fees vary depending on the park and ticket type, but you can expect to pay between 300 and 500 AED per person.

Sports and fitness offers

Dubai is known for its luxurious yet proactive lifestyle. There are countless fitness facilities where you can do something good for your body. Prices range from AED 250 to AED 1000 per month. In addition, almost every residential building in Dubai has a fitness room that residents can use free of charge.

But gyms are not the only way to exercise in Dubai. Water sports are also very popular in the emirate.

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For example, you can book a diving or surfing lesson, which costs around 200 to 500 AED. If, on the other hand, you don't want to spend a lot of money on sports facilities, the Kite Beach area is a good option. There is an 8.2 km jogging track here where you can work off some energy.

Education and health

When it comes to education, your expenses can quickly add up. This is because there are a number of excellent international schools, but they come with high school fees. You can expect to pay between AED 30,000 and 80,000 per year for your child's education alone.

Dubai also has a first-class healthcare system. This is evident from the numerous state-of-the-art medical facilities and private clinics specializing in various fields. However, you should be aware that the cost of good medical care in Dubai can be very high. Especially for you as an immigrant.

This is because in most cases you will not receive the same subsidies and benefits as local residents. We therefore recommend that you take out private insurance so that you receive all-round care in the event of illness and are not faced with unexpected costs.

Conclusion

Dubai is one of the cities with the highest cost of living in the world, although these costs can vary greatly depending on where you live and your individual standard of living. Rents in sought-after areas such as Downtown Dubai and Dubai Marina in particular have increased significantly in recent years. Expenses for food and entertainment can also be significant.

To ensure that you can make ends meet in Dubai, we recommend that you prepare a well-thought-out budget plan for each month. A first step could be, for example, to get an overview of your own income and expenditure and to identify potential savings. You can also reduce your monthly expenses if you choose a cheaper place to live or make savings on leisure activities, for example.

FAQ

How much money do I need per month to live in Dubai?

This depends entirely on your personal lifestyle, so it's difficult to give a general answer to this question. Generally speaking, however, as a single person you should earn at least €6,000 to €8,000 net per month to make ends meet. 

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