If you are planning to live in Dubai, you may want to start by figuring out the costs of your daily expenses. Real estate, groceries, utilities, transportation, entertainment, and healthcare are many expenses you can expect to incur. Then, you should know what to expect from taxes and other fees. Once you have all of this information in hand, you can plan for your future. You will soon find that the cost of living in Dubai are not as expensive as you may have imagined.
Price of real estate
The rising residential property prices in Dubai aren’t surprising, considering the country’s high demand for investment properties. The country is on track to complete more than 64,000 new housing units by 2022, which would be its highest completion since the global financial crisis. And while the current trend will probably continue, it should at least keep the prices reasonable. Luckily for Dubai property buyers, this trend will only continue as long as there is sufficient supply.
The recent rebound in the price of residential property in Dubai is largely due to pent-up demand, improved investor and consumer sentiment, and a slow recovery of the country’s economy. As a result, it has enacted new policies to entice residents to stay.
Cost of transportation
To get around Dubai, you can use public transportation. Taxis in the bigger emirates are available 24 hours a day, and the night charges are slightly higher than the daytime ones. For ladies, there are special women-only taxis available. You can also get airport taxis, but these are more expensive than the regular ones. However, they are still an affordable option for travelers who don’t want to spend a lot of money.
The price of public transportation in Dubai is affordable and flexible. Using public transit is inexpensive, and there are a variety of routes that cover many areas of the city. Taxis, for example, cost AED 4.27 for five kilometers within the city limits. So while you may be stuck with a heavy wallet and a long commute, the overall cost of transportation in Dubai is affordable.
Household expenses
Regarding household expenses, the average cost of living in Dubai is lower than in major ex-pat hubs. These include utilities, groceries, clothing, entertainment, healthcare, transportation, and schooling. The cost of recreation is not included in this cost. However, some expenses can be negotiated. Here are some expenses to expect when moving to Dubai:
Taxes
While the UAE relies on a set of tax decrees, the country is diversifying its revenue base by considering value-added taxation and introducing a federal corporate income tax.
Cost of utilities
During the hot summer months, the cost of utilities in Dubai can easily reach AED 1,000 per month. The tenant largely bears these costs and includes connection fees (usually about 1,000 AED per apartment). Utilities in Dubai can be relatively inexpensive, though the cost of air conditioning in the summer may be an additional expense. In general, the cost of utilities in Dubai does not exceed 30% of the monthly income. For further details, see the Dubai Rental Index.
