Cost of Living in Dubai vs the UK (2025 Guide)

Dubai continues to be one of the most attractive destinations for British expats, with more than 80% of its population made up of foreigners. With no income tax, long-term visa options, and a reputation for luxury, it’s easy to see why many from the UK are considering a move.

But what does it actually cost to live in Dubai in 2025 compared to the UK? From rent and utilities to healthcare and schooling, this guide breaks down the numbers so you know what to expect before making the leap.

Is Dubai Expensive?

Yes — Dubai ranks among the world’s most expensive cities. According to Mercer’s 2025 survey, it is the 15th priciest city globally and the most expensive in the Middle East.

The biggest driver of cost is housing. Average rents rose by 16% year-on-year, with luxury apartments climbing by as much as 25–30%. At the same time, salaries are predicted to remain flat in 2025, with one in four companies stating they will not increase pay this year.

This gap between earnings and rising living costs presents a challenge, especially for middle-income professionals.

How Much Do You Need to Live in Dubai?

Living expenses vary depending on family size, lifestyle, and location. On average:

• Single person: AED 4,106 (£849) per month (excluding housing)
• Family of four: AED 14,293 (£2,955) per month (excluding housing)

When you include housing, healthcare, and schooling, monthly costs rise significantly.

Cost of Living: Dubai vs London

While expensive, Dubai is still cheaper than London in several categories. London is the 8th most expensive city worldwide, while Dubai sits at 15th.

Here’s a quick comparison:

Expense	Dubai	London
1-bed apartment (city centre)	AED 8,757 (£1,838)	£2,153
Property price per m² (city centre)	AED 17,859 (£3,782)	£13,404
Monthly salary (after tax)	AED 12,841 (£2,719)	£3,738
3-course meal for 2	AED 300 (£64)	£80
1 litre of milk	AED 7.26 (£1.54)	£1.31
1kg chicken fillets	AED 31.07 (£6.58)	£7.34
Monthly travel pass	AED 300 (£64)	£200
Utilities (85m² apartment)	AED 722 (£153)	£290
Preschool (monthly)	AED 2,885 (£611)	£1,816

Key takeaway: Rent and schooling are costly in Dubai, but groceries, transport, and dining out are generally more affordable than in London.

Housing and Rent in Dubai

Housing is the largest expense for most expats. Rents vary by neighbourhood and payment terms, which are very different from the UK. Instead of monthly payments, Dubai landlords often require one to four post-dated cheques for the year’s rent.

Examples of average 2-bedroom property rents in 2025:

• Palm Jumeirah: AED 248,776 (£53,700) per year
• Dubai Marina: AED 138,208 (£29,800) per year
• Downtown Dubai: AED 187,880 (£40,500) per year
• Dubai Sports City: AED 73,791 (£15,900) per year

For those willing to live outside the city centre, areas like Mirdif or Al Qusais offer significantly lower rents, sometimes half the cost of expat-heavy districts like JBR or the Marina.

Transport Costs

Dubai is far cheaper than London for commuting.

• Monthly metro pass: AED 300 (£64) vs £200 in London
• Petrol: AED 3.06 per litre (about £0.65) vs £1.51 in London

The Dubai Metro is modern, reliable, and expanding, but it doesn’t reach every area. Many expats choose to drive, since car ownership is affordable compared to the UK.

Healthcare and Insurance Costs

One of the biggest lifestyle changes for Brits is healthcare. Unlike the UK’s NHS, Dubai requires residents to have private health insurance.

• Health Card (subsidised access to public healthcare): AED 320 (£69) annually
• GP Visit: AED 100 (£21) or less
• Specialist Visit: AED 150–300 (£32–£65)
• ER Visit: AED 200–500 (£43–£108)

Average Health Insurance Costs (2025):

• Basic individual plan: AED 700–2,000 (£150–£430)
• Comprehensive individual plan: AED 3,000–8,000 (£645–£1,720)
• Family plan (4 members): AED 15,000–25,000 (£3,220–£5,375)

Many employers include health insurance in expat packages, but it’s worth checking coverage levels carefully.

Bottom Line: Is Dubai Cheaper Than the UK?

Dubai’s tax-free income, cheaper groceries, and affordable transport make it attractive compared to the UK. However, rising rents, schooling fees, and healthcare costs can quickly offset those benefits.

For high earners, Dubai remains a financially rewarding destination. For middle-income families, careful budgeting is essential to balance the lifestyle perks with the realities of high living expenses.

👉 Would you like me to also create a short summary box (Quick Facts: Average Rent, Salary, Groceries, etc.) at the top of the article so readers can see the key numbers instantly?