Dubai has long been known as a land of opportunity—a futuristic city where skyscrapers meet sandy beaches, and cultures from across the world blend seamlessly. But while the city offers unmatched career growth, luxury, and vibrant living, one question always lingers in the minds of newcomers: What’s the real cost of living in Dubai?
Whether you’re an expat couple considering relocation, a professional moving for work, or simply curious about life in one of the world’s most dynamic cities, understanding Dubai’s living expenses is key. From rent and utilities to groceries, healthcare, and leisure, this guide breaks down the true monthly expenses of living in Dubai in 2025.
Housing Costs in Dubai
When it comes to living in Dubai, housing takes the biggest bite out of most budgets. For many expats, the decision begins with one key choice: renting or buying.
Renting in Dubai
Most expats prefer to rent, and depending on where you live, costs can vary dramatically. Employers sometimes offer a housing allowance, but if not, you’ll need to budget carefully.
Here’s what to expect as a tenant in Dubai:
- Advance Rent Payment: Many landlords require rent to be paid upfront, either in one annual cheque or split into quarterly payments.
- EJARI Registration Fee: Around 220 AED (~$60) to officially register your lease online.
- Security Deposit: Typically 5–10% of annual rent.
- Agency Commission: Usually 2–5% of annual rent.
Rental prices differ depending on location, property type, and amenities. For example:
- Deira: Studios from 15,000 AED/year (~$4,000); one-bedroom from 42,000 AED (~$11,400).
- Bur Dubai: Studios around 16,000 AED/year (~$4,300); two-bedrooms from 36,000 AED (~$9,800).
- Dubai Silicon Oasis: Studios ~24,000 AED/year (~$6,500); two-bedrooms ~45,000 AED (~$12,200).
- International City: Studios ~21,000 AED (~$5,700); three-bedrooms up to 80,000 AED (~$21,800).
👉 Tip: Don’t forget furniture. If your apartment is unfurnished, expect to spend around 10,000 AED (~$2,700) on basics.
Buying Property in Dubai
Owning real estate in Dubai comes with more than just pride—it can also earn you residency.
- Properties worth 750,000 AED ($204,000+) grant a 2-year residence visa.
- Investments of 2 million AED ($545,000+) qualify for golden visas (5–10 years).
Dubai offers two main property models:
- Freehold: Full ownership, available in areas like Downtown, Palm Jumeirah, Dubai Marina.
- Leasehold: Long-term leases (up to 99 years) but without ownership rights.
Prices in 2025 snapshot:
- Business Bay apartments: from 680,000 AED (~$185,000).
- Palm Jumeirah luxury flats: from 950,000 AED (~$250,000).
- Townhouses: start at 735,000 AED (~$200,000), with most averaging between 1.5–2 million AED.
- Villas: range widely, from affordable options at 1.25 million AED (~$340,000) to luxury mansions in the tens of millions.
Mortgages are available, but require a 25% down payment and proof of income. Banks typically won’t approve a loan if repayments exceed 50% of your salary.
Utilities in Dubai
Your utility bills depend on property size, location, and lifestyle. A studio will naturally consume less than a villa with a garden, pool, and round-the-clock AC.
- Water & Electricity: Couples typically spend at least 550 AED (~$150) per month. Larger villas can cost significantly more.
- Housing Fee: Tenants pay an extra 5% of annual rent as a municipal housing tax.
- Internet & TV: Around 370 AED (~$100) per month.
- Mobile Plans: Starting at 55 AED ($15), with full-featured packages around 360 AED ($100). Premium bundles can exceed 900 AED/month ($270).
Food & Dining Costs
One of Dubai’s biggest perks is its diverse food scene—whether you crave budget-friendly bites or five-star dining.
- Fast food meal: ~35 AED ($9.50).
- Mid-range restaurant for two (3 courses + wine): ~250 AED ($68).
- Cappuccino: 20 AED ($5.50).
- Beer: 42 AED ($11).
Alcohol is only available in licensed shops, and while expats now get liquor permits for free, prices remain high. A standard bottle of wine costs about 60 AED ($16).
Grocery Prices (2025 averages):
- Bread (500 g): 6 AED ($1.60)
- Milk (1 L): 7 AED ($1.90)
- Eggs (12 pcs): 12 AED ($3.30)
- Chicken (1 kg): 32 AED ($8.70)
- Beef (1 kg): 39 AED ($10.60)
- Apples (1 kg): 9 AED ($2.50)
- Tomatoes (1 kg): 6 AED ($1.60)
👉 Budget hack: Spinneys and Waitrose are great for quality but expensive. For savings, check Deira markets for fresh, affordable produce.
Healthcare Costs
Dubai has world-class healthcare, but it comes at a price. Fortunately, health insurance is mandatory for residents, often provided by employers.
- Basic insurance: Covers general medical services; premiums around 600–800 AED/year.
- Comprehensive plans: Can exceed 10,000 AED/year depending on coverage, pre-existing conditions, and add-ons.
Private consultations typically cost 200–400 AED ($55–$110), while specialists and advanced procedures can run higher.
Transportation
Getting around Dubai depends on your lifestyle.
- Metro & Public Transport: Affordable, with metro rides starting at 3 AED ($0.80).
- Monthly NOL card: Around 300 AED ($82) for unlimited travel.
- Car Ownership: Popular among expats. A new mid-range car starts at ~70,000 AED ($19,000), with fuel costs among the cheapest globally (~3 AED/liter).
- Taxis: Starting at 12 AED ($3.30) per ride.
Entertainment & Lifestyle
Dubai is known for blending luxury with everyday fun. Entertainment can be as budget-friendly or as extravagant as you want.
- Cinema ticket: ~45 AED ($12).
- Fitness club membership: ~300 AED ($82) monthly.
- Nightlife: Drinks range from 50–70 AED ($14–$19) each at bars/clubs.
- Tourist attractions: Burj Khalifa entry from 150 AED ($40), desert safaris around 250 AED ($68).
For couples, monthly leisure spending can range from 1,000 AED ($270) on basics to well over 5,000 AED ($1,360) if you indulge in regular fine dining and events.
Education
For expat families, school fees are a major consideration. Dubai offers private schools with British, American, IB, and Indian curricula.
- Annual fees: Ranging from 15,000 AED ($4,000) at budget schools to 100,000 AED+ ($27,200) at elite institutions.
- University tuition: Varies by program but averages 40,000–70,000 AED ($11,000–$19,000) annually.
Final Thoughts: Is Living in Dubai Expensive?
The cost of living in Dubai in 2025 depends largely on your lifestyle choices. Couples can live modestly on 10,000–12,000 AED/month ($2,700–$3,200) by renting a smaller apartment, cooking at home, and using public transport. On the flip side, luxury seekers can easily spend 30,000 AED/month ($8,200+) on upscale housing, fine dining, and private schooling.
Dubai is a city of contrasts—where you can either live simply yet comfortably or enjoy an ultra-luxurious life with all the trimmings. The key is knowing your budget, planning smartly, and deciding what kind of lifestyle suits you best.