Dubai is a popular destination for expats from all over the world due to its wonderful climate, miles of beaches and a thriving economy. Since Dubai is tax-free, most people think they can make substantial savings quickly. However, the luxuries in the city result in more spending, less saving and even plunge some people into debts.
But this is not true for everyone. If you factor in all the costs before moving, you can actually even save some money to invest in this luxury city.
The Dubai property market has improved significantly in the recent past. There are numerous off plan properties in Dubai if you are planning to live in this part of the world. Some of them are placed in prime locations such as Emaar Beachfront apartments or Bluewaters apartments.
Before planning your move to Dubai, here are some of the most common expenses for people living in Dubai
Just like any part of the world, rent in Dubai will depend on the location you live. In most cases, rental contracts are usually renewed annually and some landlords require the entire rent to be paid upfront. On top of the rent, remember that you will also be required to pay a security deposit. There is also a realtor commission of about 5% of the annual rent. The rent of a two bedroom apartment in popular areas like Dubai Marina and JBR is about AED 100000 to AED 140000 per year while in further areas like Al Qusais the rent is approximately AED 75000 per year.
You will have to set up a Dubai Electricity and Water Authority (DEWA) account to get water and electricity connections. For a standard apartment, you will be required to pay a refundable connection fee of AED 1000 and AED 2000 for villas. Depending on personal consumption and size of the house, the utility bills can range from AED 1200 to AED 5000 per month. During the summer, air conditioning bills can escalate due to high temperature.
There are different modes of transport in Dubai including taxis, buses, metro and water taxis. The best way to save on transport expenses is by using the Dubai Metro or buses. However, if you need to travel to nearby emirates frequently, you may need a car. There are various car rental agencies across Dubai that offer good deals. You can get a small car like Toyota Yaris for about AED 1500 per month.
There are various international food brands in most supermarkets across the city. However, this option can be slightly expensive. Alternatively, you can get quality produce and vegetables at a fraction of the cost at local markets.