Costs of Living in Dubai in 2025: Detailed Guide

Dubai, a city with a luxurious lifestyle, stunning skyscrapers and vibrant culture is also known for its unique cost of living that differs based on your lifestyle. Whether you are attracted by the lavish way of life in this city, or you prefer a more modest approach, Dubai can offer you a wide spectrum of living options. However, it can be difficult for newcomers to navigate all these considering different categories of costs like housing, utilities, groceries, healthcare and others.

In this guide, we’ll break down the key costs you’ll encounter while living in Dubai, providing you with a closer look at what to expect and offering tips to help you manage your expenses effectively. Whether you’re planning a short-term stay or looking to make Dubai your long-term home, being financially prepared will make your experience much more enjoyable.

General overview of living costs in Dubai (monthly estimates)

Breaking Down The Costs of Living in Dubai

If you want a clear picture of all the expenses, you should consider all the different categories of costs when it comes to living in Dubai. The most important category, housing costs, can vary based on the type of unit you choose, so for a 1-bedroom apartment you could expect to pay around AED 4,000 - 7,500 of monthly rent. Other costs like utilities, groceries, healthcare and more can make or break your monthly budget, so pay close attention to these expenses as well. Let’s explore each category in detail below.

Housing Costs

No matter if you are renting or buying, one of the largest expenses in Dubai are the ones related to housing. Depending on the community you live in, you can expect significant fluctuations in prices. For example, when you choose an apartment for rent in Dubai that is in close proximity to your workplace and it has the necessary amenities, you’ll save a lot on transportation costs. 

Residential Unit Types and Monthly Rent (AED)

Different types of rental units have different price points when it comes to monthly rent. The biggest price difference would be the monthly rent for a studio flat and for a villa. Depending on your lifestyle, preferences and budget, you can opt for a residential unit type that suits you best. Below, we combined different residential unit types with their estimated monthly rents in AED.

Estimated monthly rate based on the type of residential unit

The Cost of Buying a House in Dubai

Dubai's real estate market is incredibly attractive, with its stunning skyscrapers and spacious villas appealing to investors and homebuyers worldwide. However, if you decide to buy a home, it's important to understand all the costs involved in the process. Also, you should look for properties in the freehold areas where expats and foreigners are allowed to buy a home. Whether you are looking to find a nice downtown apartment or a villa, we combined the average cost of buying properties in Dubai, considering the location and the price range per square foot. 

The approximate cost range of properties in Dubai per square foot.

Source: Properstar

Utility Expenses in Dubai

Electricity, water connection, TV, internet package and mobile plans will all be part of your utility expenses in Dubai. Electricity and water connection are provided by DEWA (Dubai Electricity and Water Authority) and your monthly bills will differ during the winter and summer months when you’ll be using A/C more. 

Also, various TV packages and internet plans can be chosen by Etisalat and you can pick a basic package that includes 250 Mbps or 500 Mbps or more for a premium package. 

You can expect to pay from AED 125 per month for a starter postpaid mobile plan or up to AED 1,000 for packages with more data and calling minutes. On the other hand, you can also opt for prepaid mobile plans if you want more flexibility when it comes to the cost.

Grocery Shopping in Dubai

You can find food items from all over the world in many Dubai supermarkets, and depending on your food preferences, you can expect to pay different prices. For instance, Waitrose and Spinneys are premium grocery stores in Dubai, whereas Carrefour, Lulu Hypermarket or Union Cooperative are more affordable. You can purchase local produce and in-season items, as well as look out for discounts and bundle offers to cut your daily grocery bill in Dubai. To help you have a more precise estimation of prices, here is a table with popular groceries and their average prices in Dubai:

Average prices of food items in Dubai as of March, 2025 (prices can vary based on the kind of supermarket, special offers etc.)

Healthcare and Insurance Costs in Dubai

All residents in Dubai as well as expats need to have private medical insurance, while UAE nationals are covered by a government-funded plan. Dubai’s high-standard when it comes to its healthcare system is widely recognized with state-of-the-art medical facilities and highly trained professionals providing a wide range of healthcare services. However, the cost of medical insurance can be high, and expats typically have insurance through their employers, though some may need to purchase coverage independently.

Health Card

For UAE nationals, Dubai’s public medical facilities are free of charge while expatriates can use them and get a 50% discount with a health card. Here are the one time Health Card Fees you can expect for obtaining the card, for both expatriates and nationals:

• Expatriates (up to 10 years old): AED 120 (USD 32.67)

• Expatriates (18 years and older): AED 320 (USD 87.12)

• Nationals (up to 10 years old): AED 25 (USD 6.81)

• Nationals (18 years and older): AED 120 (USD 32.67)

Yearly Health Insurance Expense (AED)

There are three kinds of insurance you can get in Dubai:

1. Basic insurance coverage

2. Mid-range coverage

3. Comprehensive health insurance plan

The basic health insurance coverage costs around AED 616 per year and it provides some essential benefits that can cover your basic health needs. Mid-range coverage costs on average AED 3,000 per year and it offers more services like outpatient consultations as well as basic hospitalization. Lastly, you can expect to pay around AED 5,500 per year for a comprehensive health insurance plan that offers extensive healthcare services like higher limits for inpatient and outpatient services and specialist consultations.

The Essential Benefit Plan

Those who earn less than AED 4,000 per month or those who are not employed can use the Essential Benefit Plan (EBP) which provides basic health insurance coverage. This is a mandatory plan for all residents in Dubai and it offers affordable healthcare services. Here is a breakdown of annual premium fees based on gender, age, and employment status:

An expected salary increase based on years of experience

Education Costs for Families

Dubai's education system includes both public and private schools, with 90% of students attending private schools. These private schools offer various curricula, such as American, British, French, or the French Baccalaureate. Education is mandatory for children aged 5 to 15. Public education is free for UAE citizens. Cost can be your main factor in determining whether to opt for private or public schools in Dubai for your children.

Private Education

You can choose from 209 private schools in Dubai, with the capacity to fit in 289,195 students. Due to annual tuition caps, Dubai does not allow schools to increase their fees to unreasonable amounts. You can expect the average private school tuition fees to range from AED 12,723 to AED 64,903 (USD 3,464 to USD 17,671). Also, depending on the curriculum offered, the reputation, location and other factors, the expenses can vary significantly. Some schools could offer scholarships or financial help to ease the financial burden of families. The school covers 50% of the tuition for schools that are rated “Good” or better, while the other 50% can be paid by the parent or legal guardian.

Public Education

While public education in Dubai is free, there are a lot less public than private schools available. Arabic is used as the language of instruction in public schools and English is available as the second language. Because of the tendency to rank lower, public schools have become a top priority for the UAE government when it comes to reforming the education system. So, with continued improvements, it is expected that public schools will attract more families looking for high-quality education at no cost. This will ultimately narrow the gap between public and private schooling options in Dubai.

Transportation in Dubai

Depending on how frequently you commute, and whether you use private or public transportation, your fees can vary significantly. When it comes to fuel prices in the UAE, good news is that they are much lower than in other countries. Even more so, the type of car you drive as well as how much you fuel it will influence how much you pay.

If you plan on using the public transport system, Dubai offers a range of different options like buses, taxis, ferries and the Dubai Metro. The RTA Nol card can be used for all these services and it covers all city zones. Your transportation costs will also depend on the frequency of your travel as well as distance with taxis being the most expensive option. 

For easier and more affordable travel, getting a monthly Nol pass for AED 350 is a good option that offers you unlimited access to public transport. Another possible way to reduce commute costs and time is by being closer to your workplace.

Leisure and Entertainment Expenses

The type of activities you participate in and the amount of time you spend on them will impact the costs. If you frequently order from food delivery apps in Dubai, you should expect higher monthly expenses when it comes to this category. For example, when dining out alone in an affordable restaurant, you can expect to pay AED 40, while a meal for two in a fine-dining restaurant should cost you AED 500 to AED 1,000. When it comes to movie tickets, it should cost you around AED 45 while a monthly gym membership fee is AED 270 to AED 400.

Other Costs

Aside from some regular expenses related to your everyday life in Dubai, you can expect some other costs like taxes, internet and mobile, fitness and wellness, personal care and clothing, and more. If you have domestic help, you can expect to pay anywhere from AED 1,500 to AED 4,000 per month. If you have pets in Dubai, expect to pay for their food, veterinary care and grooming. Therefore, monthly pet care expenses could range from AED 500 to AED 2,000.

Families, Singles and Couples: Typical Costs

Depending on the lifestyle and living arrangements, you’ll see that different costs apply when it comes to families, singles and couples. So, for example, a single person will face completely different expenses when it comes to transportation, housing, groceries and leisure activities. Understanding the exact costs that apply to different lifestyles will help you get a more precise estimate of the cost of living in Dubai in 2025.

Average Costs for Families

Families can expect to have the largest amount of expenses, so for example, the cost of living in Dubai for a family of 4 is about AED 14,000, which is $3,800, monthly. The amount comes down to three times as much as singles would spend. Plus, additional costs related to childcare and education, leisure and activities as well as probable higher costs related to healthcare. 

For instance, a lot of families opt for private schooling since public schools mainly use Arabic to communicate as well as daycare or after-school activities. Also, when it comes to healthcare, families could need more frequent medical visits, vaccinations and health insurance coverage.

Average Costs for Singles

Singles might prefer to live in a smaller apartment and use shared accommodations. Also, singles usually focus on entertainment and dining out so their budget allocation is quite different. So, the cost of living in Dubai for a single person is about AED 3,000 to AED 7,000 for a studio apartment and up to AED 1,500 for groceries and dining out. 

Other costs, like utilities and internet as well as transportation is much lower for singles than families or couples too. So, while Dubai is, indeed, one of the most expensive cities to live in, it is the cheapest for singles.

Average Costs for Couples

Depending on their lifestyle choices, couples can expect to pay anywhere from AED 10,000 to AED 16,000 in Dubai. When it comes to income, a combined amount of AED 200,000 to AED 300,000 is required per year. For utility bills, couples will need to set aside a minimum of 550 a month, and for a year of rent, for a one bedroom apartment, couples would need somewhere in between AED 70,000 to AED 120,000. 

When it comes to transportation, couples can rent for about AED 1,500 to AED 3,500 or pay for a car with a monthly installment of AED 1,000 to AED 3,000. Not to forget, groceries, dining out, healthcare and other expenses should be taken into consideration as well.

Average Salaries in Dubai and Their Progression

There are large oscillations in salaries in Dubai, however, the average salary in Dubai in 2025 according to Salary Expert is AED 191,807 per year and AED 92 per hour. Per month, the average amount is AED 4,810 to AED 99,000 while the median salary is AED 13,800. Depending on education and experience, the location and the job title, the exact amounts can vary.

Typical Salaries

As mentioned, the average salary per month ranges from AED 4,810 to AED 99,000. Moreover, a typical salary in Dubai for a 2 to 5 year experience is usually 32% more than that of a junior professional. Moreover, 5 to 10 years of experience gives you a 36% higher salary than those with less than a 5 year experience. Lastly, a professional that has 10 to 15 years of experience can expect to earn around 21% more than those who have less than a 10 year experience.

Typical salary increase based on years of experience.

Progression of Salaries

In Dubai, professionals have the chance to experience a progression of their salaries based on experience. So, those professionals that stay longer in the city can expect higher salaries which makes it a financially rewarding experience. As you gain more experience, you can expect a salary increase which gives you greater financial stability and an opportunity to save and invest.

How Costly is Dubai in 2025 Compared to Other Cities

Compared to 2024, Dubai is ranking 10 places higher which is 40th place and without rent it comes to 118th place. This means Dubai positions within the top 12% of the most expensive cities worldwide. Despite the high costs, many expats consider the exceptional quality of life in Dubai to be well worth the expense. Let’s consider the cost of living in Dubai vs USA, for example and see how it compares to Dubai:

• 45% more affordable compared to New York

• 27% more affordable compared to Miami

• 7% more affordable compared to Las Vegas

Let’s take a look at a table with major cities worldwide to see where they are positioned when compared to Dubai when it comes to the standard of living. 

The worldwide standard of living rankings: Where Dubai ranks in comparison to major cities worldwide

Tips for Managing The Cost of Living in Dubai 

There is a way to cut down the average costs of living in Dubai, and once you do so, you should be in better control of your spendings. It can be quite overwhelming to live in a metropolitan city like Dubai, where expenses quickly add up. However, there are some tips and tricks to help you cut unnecessary expenses and be more mindful of how you spend your time and money. 

1. Find A House in Affordable Areas

When looking for properties in Dubai to buy or rent, housing costs will likely be one of the biggest expenses you will have. So, to save some money on housing, you want to be mindful of the following aspects:

• Location of the property;

• Size of the property;

• Rent negotiation options;

• Possible promotions;

• Controlling utility costs.

Location can play a big role when it comes to the price of property, so you should choose affordable areas like Al Qusais, International City, or Dubai Silicon Oasis. You also want to opt for smaller units or shared accommodation that can significantly lower your rent. You also want to try and negotiate rent with your landlord and look for possible promotions(rent-free periods or discounts). Lastly, energy efficient properties can help you save a lot on utilities like electricity and water, as well as mindful use.

2. Save on Utility Expenses With An Energy-Efficient Property

As mentioned above, you can try to cut your utility expenses by finding a property that is energy efficient. The so-called, passive house, is a globally recognized, performance-driven energy benchmark in construction. The main goal is to reduce heat transfer across buildings to a minimum so that large heating and cooling systems are not needed. Namely, to be more precise, a passive house allows you to save up to 70% on utility bills in just six months.

3. Save on Grocery Shopping By Planning Meals

Making meal plans can save you a big amount of money over a longer period of time. You can cut a lot when you make a list and shop for specific ingredients for your meal prep. Make sure you are not just buying groceries because it is available, or on sale if you do not need it. 

It can be quite tempting to pass by some new and interesting items in Dubai’s grocery stores, however, not wasting money on the items you do not actually need will help you stay on track. However, you do want to look for discounts and supermarket promotions and gather groceries to help you rely on home cooked food rather than food deliveries or dining out.

4. Choose Comprehensive Healthcare and Insurance

There are some ways to cut costs for your healthcare and insurance costs in Dubai. You can choose comprehensive healthcare plans since they offer more value for money. In order to cut down expenses in healthcare avenues, try and opt for comprehensive health plans as they are more value for money. 

Additionally, try looking for medical services from doctors, hospitals, or clinics that are part of your health insurance provider's approved network. Namely, when you get an in-network healthcare provider, your insurance can usually cover a large portion of the cost.

5. Reduce Education Costs With Discounts and Scholarships

​To save on primary education costs in Dubai, consider enrolling your child in public schools, which offer free education to citizens. You can also explore financial incentives like the early payment discounts or employer-provided education allowances, which can significantly reduce tuition expenses. ​You should research about sibling discounts which are offered to families with multiple children and help reduce the overall tuition fees.

To manage high school education costs in Dubai, look for schools that offer scholarships, affordable curricula, and flexible payment plans. Highschoolers should take advantage of extracurricular activities included in the fees and consider using public transport or carpooling to reduce commuting costs.

When it comes to students in Dubai, make sure to research different tuition fees in various educational institutions. You can also try to find courses that allow you to apply for scholarships in Dubai that offer flexible payment plans so you should research them in detail. Also, you can participate in some extracurricular activities that the school offers and therefore, you won’t have to find a different source to learn new skills.

6. Prioritize Public Transportation in Dubai

Saving some money on transportation is possible when you try to prioritize public transportation as much as possible, or you can try carpooling because it helps you cut fuel costs. Do not forget to check your vehicle regularly to help it last longer and stay in shape so you can also avoid expensive repairs in the future. Another way to save is to walk and cycle more often, use rideshare apps and choose a fuel-efficient car to drive in Dubai.

7. Find Free Activities and Events

How much you spend on leisure and entertainment depends on your lifestyle and it is, therefore, completely subjective. For example, if you tend to go out quite often and visit movie theaters, theme parks or nightclubs, you should try to save some money by looking for promotions and discounts. A good idea is to try to find free activities and events or go during a weekday since the prices are usually lower. Exploring outdoor activities by visiting beaches and many parks in Dubai is another great option since they are usually free.

Moving to UAE and The Associated Costs

Moving to the UAE requires specific documentation and it involves some financial considerations. You want to start by with your visa and healthcare related expenses and then consider the cost of shipping, accommodation and utilities. Lastly, transportation costs within Dubai, schooling and other miscellaneous expenses can add up if not considered when planning your budget.

Visa and Health Insurance Costs

When moving to Dubai in 2025, getting your residence visa will be one of the first steps you take. The cost of a residence visa is usually between AED 2,000 to AED 5,000, depending on the emirate and the type of visa, whether single or for a family. The processing fee, medical checks, and the issuance of an Emirates ID is also included in these costs. Also, health insurance is mandatory for all residents, with plans in Dubai typically costing between AED 3,000 to AED 15,000 per year, based on coverage and provider.

Shipping, Accommodation, and Utilities

Another significant cost you can expect is related to shipping your belongings. How much you’ll need to pay depends on the size of your shipment and how you choose to ship it. For a smaller one, you can expect to pay anywhere from AED 4,000 to AED 8,000, while a larger shipment or a full-container could cost you up to AED 30,000. When you arrive in Dubai, you need to find accommodation. 

Renting a one-bedroom apartment could cost you between AED 40,000 to AED 100,000 for a year, depending on the location. You also need to account for a deposit and upfront rent that is typically the same as one to three months of rent. Lastly, setting up your utilities usually costs between AED 500 and AED 1,500 for the initial setup. Then, your monthly bills will range from AED 300 to AED 1,000 depending on your usage.

Transportation, Schooling, and Miscellaneous Expenses

Transportation in the UAE is fairly affordable. A monthly metro pass should cost you around AED 300 to AED 350, while if you’re bringing a car, you’ll need to factor in import duties (around 5% of the vehicle’s value) and annual registration fees, which can range from AED 400 to AED 800. For families with children, schooling can be one of the largest ongoing costs. 

Tuition fees for private schools in the UAE range from AED 10,000 to AED 70,000 per year, depending on the institution and the grade level. Lastly, miscellaneous expenses related to leisure, dining out, and lifestyle choices will vary based on your personal preferences but you should consider it as part of your budget.

These costs can be slightly different depending on your personal circumstances, but planning for these expenses will help ensure a smooth transition to life in the UAE.

FAQ About The Cost of Living in Dubai UAE

There are a lot of things to consider when calculating the cost of living in Dubai in 2025. You can find some additional information in the form of questions and answers in the section below.

1. Is a monthly income of $7,000 sufficient to live in Dubai?

​In 2025, a monthly income of $7,000 (approximately AED 25,707.50) is above the average salary in Dubai, where the typical monthly income is around AED 17,500. Recent reports show that Dubai’s rapid growth has caused rents to rise by 16% in the past year, making it the 15th most expensive city globally. While $7,000 per month can cover basic expenses, living modestly without luxuries is recommended to manage the higher costs.

2. Is a salary of 15k considered good in Dubai?

A salary between AED 10,000 and AED 15,000 is considered decent in Dubai, allowing an individual to cover expenses and save a reasonable amount. In 2025, this salary range can support a comfortable lifestyle, especially for those living in shared accommodations or in more affordable areas. However, for those who want a more luxurious lifestyle or living in prime areas, higher salaries may be needed.

3. Is Dubai tax-free?

Dubai has no personal income tax, meaning residents are not required to register or report individual taxes. However, there are other taxes like the 5% Value Added Tax (VAT) on goods and services and municipal taxes on rental properties. While income tax is absent, these indirect taxes contribute to the government's revenue.

Conclusion - Making The Cost of Living in Dubai Work for You

Now that you know what to expect in terms of all the costs associated with living in Dubai in 2025, you can be better prepared if you decide to move there. Make sure not to overlook any type of expenses you might have in Dubai, and prepare your budget accordingly. With helpful tactics like looking for promotions and discounts as well as taking advantage of free activities, you can try to save a bit on your everyday life expenses.

Not to forget, finding the right property in terms of size, location and type can significantly impact your overall cost of living in Dubai. If you need help to find the best property in Dubai, Kredium has a great offer for you. Precisely, you can contact Kredium for mortgage financing, real estate services and expert mortgage advice to help you navigate the complex property market in Dubai.

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