How Much Does It Cost to Live in Dubai? Expenses and Comparison

Dubai, a shining city in the United Arab Emirates, is famous for its luxury, tall buildings, and lively culture.  But for those considering a move to this luxurious city, one question often arises: How much does it cost to live in Dubai? Is Dubai expensive to live in? In this blog, we’ll break down the cost of living in Dubai and help you understand whether it fits your budget.

Is Dubai Expensive to Live In?

The answer to this question depends on your lifestyle and preferences. Dubai can be both affordable and extravagant, depending on where you live, how you spend, and what you prioritize. While it’s true that Dubai is home to some of the world’s most luxurious experiences, it’s also possible to live comfortably on a moderate budget.

Let’s dive into the key expenses you’ll encounter when living in Dubai.

1. Accommodation Costs in Dubai

Housing is often the most significant expense in Dubai. The cost varies greatly depending on the area and type of accommodation:

• Rent for a 1-bedroom apartment in the city center: AED 6,000–10,000 per month (approx. CHF 1,500–2,500).
• Rent for a 1-bedroom apartment outside the city center: AED 4,000–7,000 per month (approx. CHF 1,000–1,800).
• Rent for a 2-bedroom apartment in the city center: AED 10,000–18,000 per month (approx. CHF 2,500–4,500).
• Rent for a 2-bedroom apartment outside the city center: AED 6,000–12,000 per month (approx. CHF 1,500–3,000).
• Luxury villas or penthouses: AED 20,000+ per month (approx. CHF 5,000+).

Popular areas like Downtown Dubai, Dubai Marina, and Palm Jumeirah are more expensive, while suburbs like Al Barsha and International City offer more affordable options.

2. Transportation Costs

Dubai has a reasonably well-connected public transportation system, making it easy to get around without breaking the bank. However, having your car or using a taxi may be much more convenient because the public transportation is not yet as far developed as in other western countries and cities:

• Monthly public transport pass: AED 350 (approx. CHF 85).
• Taxi starting fare: AED 12 (approx. CHF 3).
• Fuel costs: AED 3–4 per liter (approx. CHF 0.75–1).

When relocating to Dubai, you therefore may want to include in your budget to use a car for convenience and efficiency reasons. Keep in mind that car ownership comes with additional costs like insurance, registration, and maintenance. You should know that walking by foot from one location to another is not often done. The city’s infrastructure is not built and optimized for this, especially when comparing it with other cities like London, Zurich, Rome, or New York. Also, the hot temperature during summer makes it sometimes difficult to even walk shorter distances by foot for people that are not used to such temperatures.

3. Food and Groceries

Dubai offers a wide range of dining options, from budget-friendly street food to high-end restaurants. Especially some of Dubai’s luxurious restaurants offer a unique experience that cannot be found anywhere else as you will find the finest cuisine from all around the world. No matter if you prefer Japanese, Brazilian, Italian, or Thai food.

• Meal at an inexpensive restaurant: AED 30–50 (approx. CHF 8–12).
• Three-course meal for two at a mid-range restaurant: AED 200–400 (approx. CHF 50–100).
• Three–course meal for two at a high-end restaurant: AED 600 – 1’600 (approx. CHF 130 – 400).
• Monthly groceries for one person: AED 800–1,500 (approx. CHF 200–375).

Supermarkets like Carrefour and Lulu offer affordable groceries, while specialty stores cater to those seeking imported or gourmet items.

4. Healthcare and Medical Services

Healthcare in Dubai is characterized by a mix of public and private services, with a significant reliance on private healthcare providers. The cost of medical services can vary widely depending on the facility, the type of care required, and whether one is covered by insurance. Some of the most expensive hospitals in the UAE include the American Hospital Dubai and the Mayo Clinic Dubai.

• General doctor’s consultation: AED 300 – 500 (approx. CHF 80-150)
• Specialist consultations: AED 500-1,200 (approx. CHF 150-350).

Expatriates and tourists, who often lack comprehensive insurance coverage, can face significantly higher out-of-pocket expenses compared to UAE nationals. Dubai’s healthcare system is rapidly evolving to host the latest medical infrastructure and technology at some of the most popular hospitals and clinics.

5. Education

If you’re moving to Dubai with children, education costs can be a significant factor. 

• International school fees: AED 30,000–90,000 per year (approx. CHF 7,500–22,500).

One of the most common reasons for families to move to Dubai, is because of the safety all around the city. Especially for teenagers it is a big advantage being able to enjoy life and go out at night, knowing that Dubai has one of the lowest crime rates globally and is considered as one of the saves cities to live in. 

Healthcare in Dubai is of high quality, but it’s essential to have health insurance, which is mandatory for residents:

6. Health Insurance

As a resident of Dubai, you are obliged to hold DHA (Dubai Health Authority) compliant health insurance. The price of health insurance in Dubai varies significantly based on coverage levels, the insurance provider, and the policyholder’s age and medical history. For a basic individual health insurance plan, costs typically range from AED 2’000-5’000 (appx. CHF 600-1’500) annually. Such insurance policies are mostly only taken out for visa compliance and are often not used in practice due to the very limited insurance coverage included. For expatriates, it is not recommended to only rely on the minimum health insurance coverage as per the DHA’s regulation. Especially in the UAE, it is recommended to always hold comprehensive private medical insurance due to the high cost of some medical treatments. 

• Comprehensive private medical insurance for a healthy 40 year old: AED 25’000-30’000 annually (appx. CHF 6’200-7’500)

As the UAE government gradually tightens regulations on health insurance for residents, these prices are expected to continue evolving.

As an independent broker specialized on private medical insurance, we always perform a full market review and comparison of the available private health insurance plans to identify the best options for you. This always includes an upfront analysis of your needs and expectations. For example, the premium can be reduced if you do not necessarily want to have access to the most expensive hospitals such as the American Hospital Dubai.

With our expertise, you can:

• Compare the best private medical insurance options in terms of price and benefit.
• Find out which insurance company and medical network is most suitable for your situation.
• Choose from individual health insurance plans or comprehensive company plans for businesses and employees.
• Benefit from our Medical Concierge Service for seamless healthcare coordination.

7. Entertainment and Lifestyle

Dubai is famous for its entertainment options, from desert safaris to world-class shopping malls:

• Cinema ticket: AED 40–60 (approx. CHF 10–15).
• Gym membership: AED 300–500 per month (approx. CHF 75–125).
• Desert safari or theme park tickets: AED 200–500 (approx. CHF 50–125).

While entertainment can be pricey, there are also plenty of free or low-cost activities, such as visiting public beaches or exploring traditional souks.

Is Dubai Expensive Compared to Switzerland?

For Swiss residents, Dubai’s cost of living may feel comparable or even lower in some areas. While housing and dining out can be expensive, utilities, transportation, and groceries are often more affordable than in Switzerland and most other European countries. However, luxury experiences in Dubai can quickly add up and become much more expensive compared to the cost of such experiences in Switzerland, so budgeting is key.

Especially for your private health insurance, you should always consult with a specialist to find the best insurance policy that should offer long-term financial protection.

Conclusion: How Much Does It Cost to Live in Dubai?

So, is Dubai expensive to live in? The answer is: it depends. While Dubai offers a luxurious lifestyle, it’s also possible to live comfortably on a moderate budget. By making informed choices about housing, transportation, and entertainment, you can enjoy all that this dynamic city has to offer without breaking the bank.

Whether you’re moving for work, family, or adventure, Dubai’s unique blend of modernity and tradition makes it an exciting place to call home.