Dubai is renowned for its premium and high-value real estate market. This city is an excellent choice for looking for a place to start a new business or find a job. One of the primary concerns when looking for housing is the cost of living. Dubai is considered one of the most expensive cities in the world. Do we need to be super-rich to live in Dubai, or can conventional income give us quality results too? In this detailed guide, let us look at the cost of living in Dubai, including the cost of food, transport, education, and personal care.
Housing Costs in Dubai
Housing costs vary by location, size, and services. The average rent in Palm Jumeirah is AED 220,000. This cost is four times higher than the average cost of renting an apartment in an affordable area. The average rent for different properties in Dubai is:
| Property Type | Budget (AED) | Mid (AED) | Luxury (AED) |
| Studio apartment | 45,000-65,000 | 55,000-70,000 | 80,000-100,000+ |
| 1-bedroom apartment | 50,000-70,000 | 75,000-110,000 | 130,000-270,000+ |
| 2-bedroom apartment | 65,000-85,000 | 90,000-170,000 | 150,000- 300,000 |
| 3-bedroom villa | 90,000-115,000 | 110,000-170,000 | 200,000- 350,000 |
| 4-bedroom villa | 115,000-130,000 | 150,000-200,000 | 250,000-450,000+ |
Costs Associated with Rental Contract
RERA (Real Estate Regulatory Agency) regulates all the rental contracts in Dubai. These agreements have a duration of 12 months, and short-term contracts are more expensive. Before renting, it’s wise to understand all rental fees and taxes in Dubai to avoid surprises. The costs associated with buying or renting a home in Dubai are as follows:
Security Deposit
The security fees for unfurnished apartments are 5%, while those for furnished apartments are 10%. This amount is refundable at the end of the contract period, but deductions are made for any damage.
Agency Fees
The agency charges 5% of the total amount of payment for their services.
Ejari Registration
Ejari registration, introduced by RERA, is an online registration system to govern rental contracts. All rental contracts are necessary to be registered with Ejari. Registration fee through online submission is AED 155 and AED 219.75 through real estate service centers. An additional knowledge fee of AED 10 and an innovation fee of AED 10 are also charged.
Dewa Connection
DEWA provides utility services such as electricity and water services in Dubai. However, you must first have to pay a refundable security deposit.
- Apartments: AED 2,000
- Villas and Townhouses: AED 4,000
- Small Meter Connection: AED 100
- Large Meter Connection: AED 300
- Registration fee: AED 10
- Knowledge fee: AED 10
- Innovation fee: AED 10
Municipality Tax
Municipality tax, also known as the housing fee, is paid for residential properties. This fee is charged annually. It is included in the tenant’s DEWA utility bill. The tax is 5% of the annual rent.
Chiller Fees
The chiller fee is charged where apartments have central air conditioning shared among the tenants. The charges are based on the size of the conditioning unit, and these are enough to cool the whole apartment.
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Dubai’s rental process can be time-consuming and full of unexpected costs—from deposits to agency fees. Jaxtox Real Estate takes the stress out of finding your ideal home. Whether you’re on a budget or looking for something upscale, we connect you with properties that match your needs and handle the formalities for you.
- Clear guidance on contracts and fees
- Access to trusted listings
- Personalized support throughout the process
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Costs of Buying a Property in Dubai
The cost of buying a property in Dubai depends on whether you choose a budget, mid, or luxury option.
| Property Type | Budget (AED) | Mid (AED) | Luxury (AED) |
| Studio apartment | 45,000-65,000 | 55,000-70,000 | 80,000-100,000+ |
| 1-bedroom apartment | 50,000-70,000 | 75,000-110,000 | 130,000-270,000+ |
| 2-bedroom apartment | 65,000-85,000 | 90,000-170,000 | 150,000- 300,000+ |
| 3-bedroom villa | 90,000-115,000 | 110,000-170,000 | 200,000- 350,000+ |
| 4-bedroom villa | 115,000-130,000 | 150,000-200,000 | 250,000-450,000+ |
Government Fees
All property transactions must be registered with DLD (the Dubai Land Department). This includes:
DLD Fee: 4% of purchase price + AED 580
Registration Fee for properties below AED 50,000: AED 2,000 + 5% VAT
Registration Fee for properties above AED 50,000: AED 4,000 + 5% VAT
Mortgage Registration Fee: 0.25% of the loan amount + AED 290
Agency Fees
This costs 2% + VAT of the purchase price.
Conveyancing Fees
A conveyancer’s role is to ensure you do not face any issues during the purchase and costs between AED 5,000 to AED 10,000.
The Average Cost Of Living in Dubai
For a single person, knowing how much money you need to survive the month or year is essential. Below is an average calculation of the average monthly and annual expenses you will face while living as a single person.
| Expense | Cost per Month (AED) | Cost per Year (AED) |
| Rent | 2,500-4,500 | 30,000-54,000 |
| Utilities | 700-1,000 | 8,400-12,000 |
| Food | 1,000-2,000 | 12,400-24,000 |
| Entertainment | 650-1,500 | 7,800-18,000 |
| Transport | 350-2,000 | 4,200-24,000 |
| Total | 5,200-11,000 | 62,400-132,000 |
The Average Cost Of Living in Dubai for Couples
| Expense | Cost per Month (AED) | Cost per Year (AED) |
| Rent | 4,800-8,500 | 48,000-102,000 |
| Utilities | 900-1,300 | 10,800-15,600 |
| Food | 1,700-3,000 | 20,400-36,000 |
| Entertainment | 1,200-3,000 | 14,400-36,000 |
| Transport | 700-4,000 | 8,400-48,000 |
| Total | 8,500-19,800 | 102,000-237,600 |
Comparison Table: Cheapest Areas to Rent in Dubai (2025)
| Area | Studio (AED/year) | 1-Bedroom (AED/year) | 2-Bedroom (AED/year) | Metro Access | Best For |
| International City | 26,000 | 36,000 | 53,000 | Bus Links to Red Line | Expats, Students, Couples |
| Al Nahda | 32,000 | 42,000 | 55,000 | Green Line | Families, Professionals |
| Deira | 22,000 | 36,000 | 55,000 | Green Line | Budget-conscious professionals |
| Al Qusais | 29,000 | 44,000 | 60,000 | Green Line | Families, Suburban living |
| Muhaisnah | 22,000 | 48,000 | 55,000 | No Metro Access | Blue-collar workers, Budget-conscious |
| Discovery Gardens | 43,000 | 60,000 | 88,000 | Bus Links to Metro | Nature lovers, Professionals |
| Dubai Silicon Oasis (DSO) | 32,000 | 55,000 | 65,000 | Bus Links to Metro | Tech professionals, Students |
| Jebel Ali | 38,000 | 45,000 | – | Red Line | Professionals in logistics/manufacturing |
| Satwa | 40,000 | 72,000 | – | Bus Links to Metro | Couples, Solo renters |
| Karama | 39,000 | 51,000 | 70,000 | Green Line | Families, Professionals |
Conclusion
Dubai’s thriving economy is opening revenues towards the real estate business. In the year 2025, the consistent growth in the real estate market value adds to the rising demand for the real estate business. Modern-day technology, environment-friendly living, improved lifestyle, and the changing trends in Dubai make its real estate market all the more worthwhile. Dubai has plenty to offer everyone. The fluctuating apartment prices and their flexibility and economy-friendly approach attract people from all backgrounds to this city. Future investments and long-term approach projects offer diversification and potential for further market growth and reduction in prices. Dubai offers affordable options for a wide range of residents. What are you waiting for? If you’re thinking of settling here. Now is an ideal time to consider it.
USD 129,600
EUR 110,400
AUD 177,600
INR 9,691,200
GBP 96,000
PKR 21,009,600
RUB 9,926,400
SAR 489,600
RSD 12,926,400
SGD 177,600
CNY 859,200
HKD 1,012,800
XPF 13,224,000
OMR 48,000