Introduction
Dubai is one of the top destinations for digital nomads and expats seeking a vibrant lifestyle, a tax-friendly environment, and a place filled with networking opportunities. But the question you might be asking yourself is: how much does it really cost to live in this developed and fast-paced city?
The Dubai Nomad is here to break down the expenses and provide you with a clear picture of what to expect if you were to relocate.
Is Dubai an Expensive City?
It depends on your lifestyle, however, it is considered expensive. Dubai is usually not short of options, from luxurious apartments and villas to budget-friendly ones, from high-end shopping in Dubai Mall to affordable options in areas like Deira.
While it can be expensive, one can make it an affordable destination to live in. Areas like Dubai Marina are expensive, but if you move away from the city and choose an area such as JVC, you might get something similar but at a more affordable price.
Number of Expats in Dubai
Dubai is a multi-cultural city, with expats making up a majority of its population. Over 85% of Dubai’s residents are expats, showing the allure it has on foreigners. The government has made it easy for foreigners to find jobs, or set up businesses.
Related: How to Set-up a Business in Dubai
Why Dubai is a Top Destination for Expats and Digital Nomads
- Tax-Free Income: Personal income is not taxed.
- Modern Infrastructure: World-class transportation, internet, and amenities.
- Safety and Security: Dubai is one of the safest cities in the world with low crime rate.
- Global Hub: Excellent connectivity to the rest of the world with a world class airport and airline.
- Business Opportunities: There are many expats and nomads living in Dubai providing a great environment for networking and collaborations.
- Lifestyle: From beaches and desert safaris to shopping and dining, there’s something for everyone.
- Digital Nomad Visas: Dubai offers an easy to get remote work visa allowing digital nomads to work in Dubai.
Average Cost of Living
Let’s break down the typical monthly expenses for a single person and a couple:
Single Person:
- Rent: The rent for a studio or 1 bedroom apartment in the outskirts of Dubai is about AED 4,000 – 6,000 while in the city center, it’s about AED 7,000 – 10,000+
- Groceries: The cost can range between AED 1,000 – 1,500
- Utilities (electricity, water, internet): AED 600 – 1,000
- Transportation (Metro/bus): Public transportation would be around AED 300 – 500
- Mobile Phone/Internet: AED 200 – 300
- Entertainment/Dining: AED 1,000 – 2,000
- Healthcare (basic insurance): Healthcare is mandatory in Dubai. A basic packages is between AED 500 – 1,000
- Savings: variable, but aiming for 10-20% of income is recommended.
- Taxis/Ride sharing: It depends on your usage. Check this article on Uber and taxi base fares.
- Car leasing/buying: Leasing can range from AED 2000+, depending on the type of car.
Couple:
- Rent: The rent for a studio or 1 bedroom apartment in the outskirts of Dubai is about AED 6,000 – 9,000 while in the city center, it’s about AED 10,000 – 15,000+
- Groceries: The cost can range between AED 1,500 – 2,500
- Utilities: AED 800 – 1,500
- Transportation: AED 500 – 800
- Mobile Phone/Internet: AED 300 – 500
- Entertainment/Dining: AED 2,000 – 4,000
- Healthcare: For a couple, a great package is between AED 1,000 – 2,000
- Savings: variable, but aiming for 10-20% of income is recommended.
The Dubai Nomad Cost of Living Calculator
To make budgeting even easier, The Dubai Nomad has developed a handy online cost-of-living calculator. The calculator allows one to input specific lifestyle choices such as gym memberships, education, and eating out and get a personalized estimate of your monthly expenses. You can find this calculator on our website.
Compare Dubai with Other Top Cities
Dubai’s cost of living is usually compared to cities like London, New York, and Singapore, but with the added advantage of tax-free income and a big expat and nomad community. However, cities like Lisbon or Bangkok may offer a lower cost of living. It’s essential to weigh the benefits of each city against its expenses.
Related: Digital Nomad Visa: Dubai vs Portugal
Real Estate Investments
One of the main investment types that expats and digital nomads choose to take part in is real estate. Real estate in Dubai is not cheap, however, the return on investment, as well as the rental yield, is something that convinces many to invest.
Just like any other investment, ensure you do your due diligence and get the right professionals to assist you when making such a huge investment and decision.
Related: What is the ROI (Return on Investment) While Investing in Dubai’s Real Estate Market?
Conclusion
Dubai can be quite expensive, especially for individuals coming from countries with a significantly lower GDP than the UAE. However, one can still move to this beautiful city and make it work. Choose to live on the outskirts of Dubai so that you can pay less rent as this is one of the biggest monthly expense. Live within your means and work your way up to areas such as Marina or Downtown Dubai.
