Is it Cheaper to Live in Dubai Than Back Home for Expats?
From the cost of housing and utilities to grocery shopping, leisure activities, education, healthcare, and transportation, this article will provide you with a comprehensive breakdown of the expenses you can expect as an expat in Dubai.
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Stay tuned as we delve into the specifics of each category and explore the key factors influencing the cost of living in Dubai. You’ll gain valuable insights to help you make informed decisions and evaluate whether expat life in Dubai is a viable option for you with this Pacific Prime article.
Rent in Dubai
Rent is one of the major expenses for expats living in Dubai. The city offers a variety of neighborhoods and communities with different price ranges to suit every budget. When it comes to rental prices, the cost of housing in Dubai can vary depending on the location and size of the property.
- The rental price range for one-bedroom apartments in popular areas such as The Palm, Dubai Marina, Downtown, and Business Bay: AED 50,000 to AED 85,000 per year (USD $13,000 to $23,000)
- The rental price range for affordable areas such as JVC, Sports City, and Silicon Oasis: AED 30,000 to AED 50,000 per year (USD $8,000 to $13,000)
- The rental price range for shared accommodation: Monthly payments range from AED 3,000 to AED 5,000 (USD $800 to $1,300)
- The rental price range for fully furnished rooms in hotels: Available for around AED 5,000 per month (USD 1,300)
Utilities in Dubai
When it comes to the cost of utilities in Dubai, it’s important to consider factors such as electricity, water, and internet expenses. These costs can vary based on usage, especially during the summer months when air conditioning is in high demand.
On average, residents can expect to pay around AED 500 to AED 800 per month for electricity and water in a 900 sq ft apartment. This estimate includes the charges from DEWA (Dubai Electricity and Water Authority), the main utility provider in Dubai.
In addition to electricity and water, internet packages are another essential utility expense. The monthly cost for an internet package in Dubai typically ranges from AED 300 to AED 400. This ensures residents have access to fast and reliable internet services to meet their various online needs.
Furthermore, keeping in touch with loved ones or staying connected on the go is made possible through mobile phone plans. The average cost of a mobile phone plan in Dubai is approximately AED 150 per month, providing reasonable coverage and connectivity.
Leisure and Dining in Dubai
Dubai offers a vibrant and diverse range of activities and dining options, making it a haven for expats and tourists alike. With over 20,000 restaurants to choose from, you can indulge in culinary delights from around the world, catering to various budgets and tastes.
When it comes to leisure and entertainment, Dubai has something for everyone. Outdoor enthusiasts can enjoy thrilling water sports, cycling through scenic landscapes, and exploring hiking trails amidst the stunning desert backdrop.
If you prefer indoor activities, Dubai has no shortage of options. From world-class shopping malls to state-of-the-art cinemas, you can catch the latest blockbuster movies or shop ’til you drop. Fitness enthusiasts can join well-equipped gyms or take part in a variety of classes, from yoga to high-intensity circuit training.
Curious about the cost of these leisure activities? Here are some average prices:
- Two movie tickets: AED 50
- Lunch in a mall: AED 25
- Pub dinner for two: AED 180
- Latte at a café: AED 22
- Beer in a pub: AED 45
- Cocktail in a fancy bar: AED 90
- Gym membership: AED 300
- Circuit class: AED 50
School Fees and Education in Dubai
School fees in Dubai can range from AED 4,333 to AED 50,000 per year (USD $1,200 to $13,000), depending on the school and its offerings. Many schools have reduced their fees as part of efforts to attract more students and provide accessible education.
Dubai is home to 213 schools, and this number continues to grow as new schools are set to open at the end of the year. These schools provide curricula from various countries, including the United Kingdom, the United States, and India, ensuring a wide range of educational options for families.
Healthcare in Dubai
The cost of obtaining reasonably comprehensive medical insurance in Dubai is approximately AED 10,000 per year. This investment in your health provides you with access to a network of specialists, comprehensive diagnostic services, and expedited treatments.
Dubai offers a highly regarded healthcare system, encompassing both public and private facilities equipped with state-of-the-art technology. As an expat in Dubai, your healthcare needs are typically covered by your employer, with the extent of coverage varying based on your employer’s plan.
If you prefer additional coverage and peace of mind, you have the option to opt for private health insurance. Private health insurance in Dubai ensures access to a wider range of healthcare services and facilities, allowing you to receive comprehensive and personalized care.
Cost of Living Comparison: Dubai vs. Home Country
When comparing the cost of living in Dubai to my home country, there are various factors that come into play. One of the biggest differences is the cost of housing. In Dubai, renting or buying a home can be quite expensive compared to many other countries, including the United States.
However, it’s important to consider that while housing costs may be high in Dubai, other expenses such as utilities, groceries, leisure activities, and transportation can vary. In some cases, living expenses in Dubai may be cheaper compared to my home country.
Groceries in Dubai can be affordable, especially if you choose budget-friendly local produce. Transportation costs in Dubai are also generally more affordable compared to your home country, with options such as public transport and taxis offering reasonable rates for travel within the city.
Monthly Bills: Dubai vs. Home Country
When it comes to monthly bills, Dubai and your home country may have different cost structures depending on factors such as housing arrangements and personal choices.
In Dubai, expats living in company-provided housing may have their electricity and water bills covered by their employers. However, for those responsible for paying their bills, the average monthly cost of electricity and water in Dubai is around AED 2,000.
In comparison, monthly bills in the United States can also vary based on location and personal preferences. On average, the cost of utilities, fuels, and public services in the United States is around $290 per month.
It’s important to note that these figures are average estimates and individual circumstances may vary. By carefully managing your usage and exploring cost-saving measures, you can effectively control your monthly bills and find the best approach for your situation.
Grocery Shopping: Dubai vs. Home Country
In Dubai, the cost of groceries can be higher compared to some countries, especially for imported products. However, there are budget-friendly options available, and prices can vary depending on personal choices and preferences.
Similarly, in the United States, grocery shopping costs can also vary based on location and individual preferences. It’s important to consider factors such as the availability of local produce and the presence of affordable grocery stores in both Dubai and your home country.
Grocery Shopping in Dubai
In Dubai, there are several grocery store options available, ranging from high-end supermarkets to budget-friendly chains. Popular grocery stores in Dubai include
- Viva
- Union Coop
- Carrefour
- Geant
These stores offer a wide selection of products to cater to different budgets and preferences. The average monthly cost of groceries in Dubai for one person ranges from AED 500 to AED 800 (USD $140 to USD $210).
Some essential grocery items and their average prices in Dubai are as follows:
- Milk – AED 6 (USD $1.60)
- Loaf of bread – AED 5 (USD $1.40)
- Potato – AED 3 (USD $0.80)
- Eggs – AED 10 (USD $2.70)
- Apples (1KG) – AED 8 (USD $2.10)
- Bananas (1KG) – AED 7 (USD $1.90)
- Water (1.5l) – AED 2.5 (USD $0.70)
- Cheese (1KG) – AED 35 (USD $9.50)
- Chicken (1KG) – AED 28 (USD $7.60)
Note: Prices may vary slightly between supermarkets and depending on factors such as brand and quality.
Transportation: Dubai vs. Home Country
Once you cover the initial cost of owning a car, the running costs, including fuel, are relatively low in Dubai. This means you can enjoy the convenience of having your own vehicle without breaking the bank.
In addition to private cars, Dubai also provides a well-connected public transport system. Buses and the Dubai Metro offer affordable rates, making it convenient to travel within the city. Public transport in Dubai serves as a cost-effective option for daily travel.
Taxis are another viable mode of transportation in Dubai. Known for their reliability and reasonable fares, taxis provide a convenient and affordable way to get around the city. Whether you need a quick trip to the mall or a ride to the airport, taxis offer good value for your money.
On the other hand, transportation costs in the US are higher. Fuel prices, public transport fares, and taxi charges can add up, making transportation expenses a significant consideration. Whichever your commute method is, it will have a noticeable impact on your overall budget in the US.
Frequently Asked Questions
Is it cheaper to live in Dubai than back home for expats?
The cost of living in Dubai is 35% lower than in New York (excluding rent) and rental prices are 58% lower on average. Rent prices in Dubai are also lower compared to cities like Singapore and London. Consumer prices without rent are lower in Dubai compared to Copenhagen and Zurich.
How is healthcare in Dubai for expats?
Dubai has a highly regarded public and private healthcare system with state-of-the-art facilities. Expats’ healthcare in Dubai is typically covered by their employers. Expats can also opt for private health insurance for around AED 10,000 per year to ensure access to comprehensive healthcare.
How does the cost of living in Dubai compare to my home country?
Dubai is known for its high cost of housing, with renting and buying options generally more expensive compared to many countries, including the United States. Some aspects like groceries and transportation, may be cheaper in Dubai, but housing costs in Dubai can offset those savings.
How much are the monthly bills in Dubai?
Monthly bills in Dubai can vary depending on housing arrangements and personal choices. For expats living in company-provided housing, electricity and water bills may be covered. For individuals who pay their own bills, the average monthly cost of utilities in Dubai is around AED 2,000.
Conclusion
Living in Dubai can be cheaper than in some countries from perspectives such as groceries, transportation, and healthcare. That being said, it is still best to budget plan your expenses every month to make the most use of your hard-earned money.
Healthcare expenses could be expensive if you happen to use any of the treatments and services. By securing international health insurance, you can rest assured that you are going to receive quality treatment without having to worry about financial issues.
To find a budget-friendly plan that satisfies your requirements, it is best to work with Pacific Prime Dubai. As an experienced insurance broker, we have a team of experts to provide you with impartial advice and compare insurance plans across top insurers around the globe to help you.
Contact us today to get started!
Since joining Pacific Prime, Eric was exposed to a new world of insurance. Having learned about insurance products extensively, he has taken joy and satisfaction in helping individuals and businesses manage risks and protect themselves against financial loss through the power of words.
Although born and raised in Hong Kong, he spent a quarter of his life living and studying in the UK. He believes his multicultural experience is a great asset in understanding the needs and wants of expats and globe-trotters.
Eric’s strengths lie in his strong research, analytical, and communication skills, obtained through his BA in Linguistics from the University of York and MSc in Teaching English to Speakers of Other Languages (TESOL) from the University of Bristol.
Outside of work, he enjoys some me-time gaming and reading on his own, occasionally going absolutely mental on a night out with friends.
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