How Much Is Cost of Living in Dubai? Here's the 2025 Breakdown Expenses

TEMPO.CO, Jakarta - Among all the cities in the UAE, Dubai often captures the heart of many expats, and for good reasons. From its modern skyline, cosmopolitan lifestyle, to tax-free income and abundant job opportunities, Dubai is a magnet for professionals and families from every bend of the world.

However, before relocating, it's crucial to understand what daily life might cost. So, how much is cost of living in Dubai? Is it expensive to live in Dubai? Let’s break it down, drawing insights from Immigrant Invest and Pacific Prime.

How Much Is Cost of Living in Dubai for Expats?

The overall cost of living in Dubai varies depending on lifestyle. But if you’re wondering, “Is 3,000 US enough to live in Dubai?" The answer is likely to please you, especially if you're relocating as a single expat.

On average, a single individual can expect to spend around US$1,975 per month, while a family of four typically requires about US$4,546 monthly. When compared to New York, which is noted as one of the most expensive cities in the world, Dubai is approximately 50% more affordable, making it an attractive option for those looking to balance a high-quality lifestyle with financial savings.

Housing Costs in Dubai

For expats, housing costs are often the most significant monthly expense. In Dubai, a one-bedroom apartment in the city costs around US$1,193 per month, whereas a three-bedroom unit suitable for a family of four averages US$2,125.

If you're considering buying property instead of renting, Dubai offers a wide range of real estate options. In the city center, prices stand at about US$6,000 per sqm, while properties outside the city center are more affordable at about US$3,400 per square meter.

For reference, Burj Khalifa and Business Bay are often recognized as premium residential areas. On the other hand, neighborhoods like Jumeirah Village Circle offer a more affordable alternative.

In terms of basic utilities, including electricity, water, air conditioning, and garbage collection, expats would spend around US$200 per month.

Food and Grocery Costs in Dubai

Thanks to its reputation as a multicultural city, Dubai offers a wide range of food options that cater to both various taste buds and budgets. On average, an individual can spend around US$455 per month on groceries and food, while a family of four spends about US$1,178. 

Grocery prices in Dubai can be relatively affordable when compared to countries like the United States, especially if you shop at local markets or discount chains.

However, dining out in Dubai, especially if you’re sampling its high-end restaurants, can significantly increase your food budget. That said, if you’re wondering what’s worth the splurge, be sure to explore the top 10 best restaurants in Dubai to try in 2025.

Transportation Costs in Dubai

Public transportation in Dubai is undeniably reliable and efficient, but the best part—it doesn’t cost much. A monthly public transportation pass costs about US$81.90, which gives access to the metro, buses, and trams across the city. Taxis are also widely available, with price largely depending on the distance.

Health Insurance and Medical Care in Dubai

With 85% of the population made up of expats, Dubai takes its healthcare system profoundly. In 2014, Dubai made it mandatory for all residents, including Emirati and expats, to have medical insurance. The failure to have adequate coverage could result in a monthly fine of around US$136. 

On average, a private health insurance plan costs about US$150 per month for individuals. There are several reputable health insurance providers in Dubai, including GIG Gulf Medical Insurance, Sukoon Health, and the Abu Dhabi National Insurance Company (ADNIC), offering various packages depending on coverage needs.

Entertainment Costs in Dubai

When the question of, “Is living in Dubai expensive?” arises, many people take entertainment into account. Although the city is more expensive compared to other UAE cities like Abu Dhabi and Sharjah, the cost still varies depending on your choices.

A family of four might spend over US$300 per month on leisure activities such as visiting cinemas, theme parks, and museums. Sports clubs often cost around US$300 per month.

While some public parks and beaches are free or low-cost, premium experiences such as desert safaris and yacht rentals can quickly add to monthly expenses. If you're looking for memorable experiences, you might be inspired to explore the best 3 family activities for Dubai vacation.

Average Income in Dubai

One of the biggest financial advantages of living in Dubai is the lack of personal income tax. The average annual salary after tax in Dubai is around US$53,148, which makes it approximately US$4,429 per month.

This tax-free income often allows expats to save a larger portion of their earnings or allocate more toward quality of life, investments, or travel compared to countries boasting higher tax burdens.