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What is the cost of living in Dubai?

Dubai is a constantly growing and evolving city and there are many opportunities across plenty of industries.  The cost of living in Dubai is totally depend on person lifestyle. It also depend on your job, so you do have to make sure you do your homework and research to ensure that living here will suit you and your family.

Rent

Like anywhere else in the world, rents in the emirate will vary significantly depending on the area you live in. Rental contracts are usually yearly contracts, renewable annually. Most landlords require the entire rent to be paid upfront and will accept two to four post-dated checks; you will also be required to pay a security deposit. Registered brokers and rental agencies, licensed by the Department of Economic Development, charge a fee that is 5% of the annual rent. Rents in popular expat areas such as Dubai Marina, Jumeirah Beach Residence (JBR) and old town Dubai, for a two bedroom apartment can cost anywhere from AED 100,000 to AED 140,000 annually, whereas a modest two
bedroom apartment further out in areas such as Al Qusais and Mirdif will cost you around AED 75,000 per year. If you are single, you can share an apartment with other renters and this can significantly bring down your rental costs. Rents in Dubai account for more than 30% of annual salaries.

Utilities

When moving in to a new apartment or switching apartments, the Dubai Electricity and Water Authority (DEWA) charges a refundable connection fee of AED 1000 for standard apartments and AED 2000 for larger villa properties. Depending on the size of the apartment and personal consumption, utility bills can range from AED 1,200 per month (for a small two bedroom apartment) to AED 5,000 per month for larger properties with a lawn and garden. Air-conditioning can result in significantly higher utility bills in the summer months particularly from May to August.

Schooling

There are a variety of schools in Dubai including daycare, nurseries, primary schools and private schools that offer many different curriculums to cater to the large international population here. Primary education costs between AED 20,000 to 28,000 in schools that teach the curriculum from US, UK or Europe. International schools can be very expensive with high school costs ranging from AED 40,000 to AED 90,000. Moreover, there is a huge demand for good schools and often long waiting lists, so it is very likely that these costs will increase in the years to come.

Transport

Dubai is a city best navigated by a vehicle; while there are several modes of public transport such as taxis, the Dubai Metro, buses and water taxis, not all modes of transport connect to some of the further expanses of the city, and if you need to travel to any of the nearby emirates such as Sharjah or Abu Dhabi, having a car is a must. There are several rental agencies all over Dubai that can help with car rentals; an average small size car, such as a Toyota Yaris will cost you around AED 1,500 per month with an additional AED 400 for fuel.

Groceries

There are a variety of foods available in Dubai with several international food brands available in most supermarkets across the city. However, these can be expensive and you can buy good quality local produce and vegetables at a fraction of the cost. On average, grocery bills for a family of four will cost in the range of AED 1200 to AED 1500 monthly.

Insurance

Home insurance packages start at around AED 200 for coverage of AED 50,000 while car insurance typically costs around 4-7% of the value of the car. Healthcare is provided by most companies which provide basic coverage at hospitals and clinics, but international healthcare is highly recommended if you want to take advantage of the excellent facilities provided by many of Dubai’s excellent private hospitals.
Eating out and Socializing

It is possible to eat out fairly often in Dubai without making a big dent in your wallet as the city provides a variety of dining options to suit many budgets. Alcohol, however, is likely to be much more expensive than in your home country with a glass of wine costing around AED 35 and a bottle of beer around AED 30.

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