If you’re moving to the UAE, Dubai is probably the first city that comes to mind. Dubai is a hotspot for expats, thanks to its tax-free lifestyle, safety and proximity to global markets. In fact, since 2020, around 400,000 people have moved to Dubai. But, UAE’s other popular areas have the same caliber as Dubai. Recently rising living costs and property prices have already forced us to think, “Are you choosing Dubai?” In this scenario, Abu Dhabi is the first name that balances the same lifestyle and considerable possibilities. But it has different cost structures. So before any step, we should weigh Abu Dhabi vs Dubai Cost of Living. Today, with Top Luxury Property, I found out “Is Abu Dhabi cheaper than Dubai?” Or does Dubai keep its position?
Overall Cost of Living
At first glance, Abu Dhabi generally comes across as the more affordable option. Recent data suggests that the overall cost of living in Dubai is about 9.9% higher than General Living Expenses in Abu Dhabi whilst you exclude rents from the equation. However, when you look at rental fees, the distinction turns into extra mention, with General Living Expenses in Dubai approximately 20.9% more expensive than its neighbor.
It’s critical to note that those figures are averages, and your non-public revel in may additionally range depending on your way of life alternatives, place inside each city, and precise needs. Let’s wreck down the various components of living charges to provide you a more comprehensive picture.
Housing Costs
Housing is typically the largest expense in any budget, and it’s where you’ll notice the most significant difference between Abu Dhabi and Dubai.
Apartment Rentals
If we talk abou the point Rent in Abu Dhabi vs Dubai then we found that Rental in Dubai are substantially higher than in Abu Dhabi. On average, you can expect to pay about 40.7% more for rent in Dubai. To clarify the picture, see the rental trends in both cities.
| Apartment Bed Types | Average Rent in Dubai | Average Rent in Abu Dhabi |
|---|---|---|
| Studios | AED 52,000 | AED 30,000 |
| 1-bed | AED 91,000 | AED 59,000 |
| 2-bed | AED 150,000 | AED 92,000 |
| 3-bed | AED 254,000 | AED 124,000 |
| 4-bed | AED 487,000 | AED 159,000 |
Villa Rentals
| Villa Bed Types | Average Rent in Dubai | Average Rent in Abu Dhabi |
|---|---|---|
| 3-bed | AED 169,082 | AED 110,000 |
| 4-bed | AED 356,735 | AED 140,00 |
| 5-bed | AED 555,932 | AED 180,000 |
It’s worth noting that these figures are averages, and you might find both cheaper and more expensive options in both cities. Factors such as proximity to amenities, building age, and specific neighborhoods can significantly impact rental prices.
Buying Property
If you’re considering purchasing property, the comparison becomes more nuanced:
| Location | Abu Dhabi (per sq ft) | Dubai (per sq ft) | Difference |
|---|---|---|---|
| Apartment (1 bedroom) in City Centre | 5,142.33 AED | 8,758.83 AED | +70.3 % |
| Apartment (1 bedroom) Outside of Centre | 3,867.80 AED | 5,638.47 AED | +45.8 % |
| Apartment (3 bedrooms) in City Centre | 11,054.79 AED | 16,500.82 AED | +49.3 % |
| Apartment (3 bedrooms) Outside of Centre | 8,536.99 AED | 10,875.38 AED | +27.4 % |
Like Per square-foot price, Dubai has a higher sale price compared to Abu Dhabi.
| Apartment Bed Types | Average Sales Price in Dubai | Average Sales Price in Abu Dhabi |
|---|---|---|
| Studios | AED 790,000 | AED 718,000 |
| 1-bed | AED 1,551,000 | AED 1,050,000 |
| 2-bed | AED 3,017,000 | AED 1,702,000 |
| 3-bed | AED 5,293,000 | AED 2,774,000 |
| 4-bed | AED 14,649,000 | AED 6,748,000 |
Interestingly, 1-bedroom apartment property in the city center of Dubai is about 70.3% more expensive, you can find better deals outside the center than in Abu Dhabi, which costs around 25% less.
When comparing the property markets of Dubai and Abu Dhabi, several key differences emerge. Dubai shows a more favorable Price to Income Ratio of 6.63, compared to Abu Dhabi’s 8.51, indicating slightly more accessible property pricing relative to income. However, Abu Dhabi demonstrates a higher mortgage burden, with mortgages consuming 69.59% of income, significantly higher than Dubai’s 50.11%.
The rental markets also differ notably. Dubai has a lower Price to Rent Ratio in the city centre (13.18) compared to Abu Dhabi (17.47), suggesting more attractive rental investments in Dubai. Dubai also offers better gross rental yields, with 7.58% in the city centre and 9.19% outside the centre, while Abu Dhabi provides slightly lower yields at 5.72% in the city centre and 4.77% outside.
The Loan Affordability Index further highlights the differences, with Dubai at 2.00 and Abu Dhabi at 1.44, indicating that Dubai might offer slightly more favorable lending conditions for potential property buyers. These metrics suggest that while both cities have robust real estate markets, Dubai appears to have a more balanced and potentially more attractive property investment landscape compared to Abu Dhabi.
Utilities and Bills
Your monthly utility bills can also impact your overall cost of living significantly. Dubai tends to be more expensive in this regard:
| Utility | Abu Dhabi | Dubai | Difference |
|---|---|---|---|
| Basic (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment | 524.64 AED | 799.09 AED | +52.3 % |
| Mobile Phone Monthly Plan with Calls and 10GB+ Data | 196.00 AED | 224.38 AED | +14.5 % |
| Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) | 375.72 AED | 370.60 AED | -1.4 % |
Basic utilities have a higher price in Dubai than in Abu Dhabi. These include electricity, heating, cooling, water, and garbage disposal. The cost difference exceeds 52.3%. Dubai’s warmer climate and bigger, energy-intensive buildings lead to higher usage rates, causing this gap.
The Internet costs a bit less in Dubai. The difference is small, under 1.4%.
Food and Groceries
Your grocery bill in Dubai will likely be about 5.8% higher than in Abu Dhabi. Here’s a more detailed comparison of common grocery items:
| Item | Abu Dhabi | Dubai | Difference |
|---|---|---|---|
| Milk (regular), (1 liter) | 7.09 AED | 7.18 AED | +1.3 % |
| Loaf of Fresh White Bread (500g) | 5.50 AED | 5.18 AED | -5.8 % |
| Rice (white), (1kg) | 8.81 AED | 8.45 AED | -4.1 % |
| Eggs (regular) (12) | 12.08 AED | 12.10 AED | +0.2 % |
| Local Cheese (1kg) | 39.65 AED | 35.92 AED | -9.4 % |
| Chicken Fillets (1kg) | 30.25 AED | 33.32 AED | +10.1 % |
| Beef Round (1kg) (or Equivalent Back Leg Red Meat) | 42.30 AED | 44.21 AED | +4.5 % |
| Apples (1kg) | 9.02 AED | 8.77 AED | -2.8 % |
| Banana (1kg) | 6.54 AED | 6.85 AED | +4.8 % |
| Oranges (1kg) | 6.79 AED | 6.86 AED | +1.0 % |
| Tomato (1kg) | 5.46 AED | 5.59 AED | +2.4 % |
| Potato (1kg) | 4.22 AED | 4.40 AED | +4.3 % |
| Onion (1kg) | 5.16 AED | 4.64 AED | -10.2 % |
| Lettuce (1 head) | 6.61 AED | 5.05 AED | -23.6 % |
| Water (1.5 liter bottle) | 2.29 AED | 2.37 AED | +3.3 % |
| Bottle of Wine (Mid-Range) | 50.00 AED | 60.00 AED | +20.0 % |
| Domestic Beer (0.5 liter bottle) | 8.71 AED | 9.64 AED | +10.7 % |
| Imported Beer (0.33 liter bottle) | 8.07 AED | 12.30 AED | +52.5 % |
| Cigarettes 20 Pack (Marlboro) | 23.00 AED | 24.00 AED | +4.3 % |
The price gaps for individual items may look minor. Yet, they can build up over time. This affects large families or people who eat at home often. Chicken shows the biggest difference, costing almost 19% more in Dubai.
Both cities have local and global supermarket chains, plus traditional markets (souks). Buying from local markets and choosing local products can save money in both places.
Dining Out
If you enjoy eating out, you’ll find that for inexpensive restaurant prices in Dubai and abu Dhabi is same to same. When it comes midrange or luxury restaurants, you have 16.7% more money in Dubai. Here’s a more detailed breakdown:
| Dining Experience | Abu Dhabi | Dubai | Difference |
|---|---|---|---|
| Meal at inexpensive restaurant | 39 AED | 40 AED | +2.6% |
| Three-course meal for two (mid-range restaurant) | 250 AED | 250 AED | 0% |
| McMeal at McDonald’s | 30 AED | 32 AED | +6.7% |
| Domestic Beer (0.5 liter draught) | 45 AED | 48 AED | +6.7% |
| Cappuccino | 19.55 AED | 20.73 AED | +6.0% |
| Coke/Pepsi (0.33 liter bottle) | 3.60 AED | 3.70 AED | +2.8% |
| Water (0.33 liter bottle) | 2.05 AED | 2.11 AED | +2.9% |
Although the differences are very marginal, they can add up too huge if you dine out frequently. You can find a wide range of dining options in both cities, from local restaurants to Michelin-star international restaurants. With its large expat population and tourism industry, Dubai has a more diverse restaurant scene.
Transportation
Public transportation costs show a significant difference between the two cities:
| Transportation Type | Abu Dhabi | Dubai | Difference |
|---|---|---|---|
| One-way Ticket (Local Transport) | 2.50 AED | 6.00 AED | +140.0 % |
| Monthly Pass (Regular Price) | 95.00 AED | 300.00 AED | +215.8 % |
| Taxi Start (Normal Tariff) | 12.00 AED | 12.00 AED | 0.0 % |
| Taxi 1km (Normal Tariff) | 2.00 AED | 2.50 AED | +25.0 % |
| Taxi 1hour Waiting (Normal Tariff) | 30.00 AED | 30.00 AED | 0.0 % |
| Gasoline (1 liter) | 2.88 AED | 2.82 AED | -2.3 % |
Public transport is quite expensive in Dubai, the cost of a monthly pass is more than three times, as in Abu Dhabi. It is partially due to the more comprehensive and modern public transport system of Dubai, including its metro network.
Taxi fare has a high initial fee in Dubai, but the rate per kilometer is slightly lower. If you like to drive, you will find that gasoline prices in both cities are the same.
It is worth noting that Dubai’s public transport system is more comprehensive and widely used than Abu Dhabi, which can hold high costs correctly. Abu Dhabi, being less densely populated, is often considered more car friendly.
Education
If you have children, education costs will be a significant factor in your budget. Dubai tends to be more expensive in this regard:
| Education Level | Abu Dhabi | Dubai | Difference |
|---|---|---|---|
| Preschool (monthly) | 2,422.81 AED | 3,055.88 AED | +26.1 % |
| International Primary School (yearly) | 45,146.46 AED | 49,586.64 AED | +9.8 % |
The difference is particularly noticeable for preschool education, with Dubai being nearly 26% more expensive. For international primary schools, the gap narrows to about 9.8%.
| Curriculum | Annual Tuition Fee (Dubai) | Annual Tuition Fee (Abu Dhabi) |
|---|---|---|
| Indian | AED 10,000 – AED 35,000 | AED 10,000 – AED 30,000 |
| British | AED 18,000 – AED 90,000 | AED 20,000 – AED 80,000 |
| American | AED 19,000 – AED 95,000 | AED 25,000 – AED 100,000 |
| International Baccalaureate | AED 45,000 – AED 130,000 | AED 50,000 – AED 150,000 |
It is important to note that the cost of education can vary widely based on specific schools and courses. Both cities offer many educational options offering public schools (mainly for UAE citizens) ranging from private international schools (British, American, IB, etc.).
Healthcare
Healthcare costs are generally similar between the two cities, but there are some differences:
| Healthcare Service | Abu Dhabi | Dubai |
|---|---|---|
| Basic health insurance (yearly) | 400 - 1,000 AED | 600 - 1,500 AED |
| Private doctor’s visit | 200 - 300 AED | 250 - 350 AED |
| Dentist visit | 250 - 500 AED | 300 - 600 AED |
While the range overlaps, Dubai is a bit more expensive for health services. Both cities have world-class health facilities, but Dubai has deployed itself as a medical tourist destination, which can affect prices. It is worth noting that health insurance is mandatory in both Abu Dhabi and Dubai, employers usually provide basic coverage. The quality and range of this coverage may vary, so it is important to carefully review your policy.
Entertainment and Leisure
You might spend a bit more on entertainment in Dubai:
| Activity | Abu Dhabi | Dubai | Difference |
|---|---|---|---|
| Fitness club (monthly) | 240 AED | 304 AED | +26.7% |
| Tennis court rent (1 hour on weekend) | 100 AED | 120 AED | +20% |
| Cinema ticket | 50 AED | 50 AED | 0% |
| Theater ticket (best available) | 300 - 500 AED | 350 - 600 AED | +16.7% to +20% |
While some activities like cinema tickets are priced similarly, others like fitness club memberships and theater tickets tend to be more expensive in Dubai. This can be attributed to Dubai’s more extensive entertainment and leisure offerings, catering to a larger tourist population.
Salaries
While costs are generally higher in Dubai, salaries tend to be slightly higher as well:
| City | Average Monthly Net Salary |
|---|---|
| Abu Dhabi | 11,987.66 AED |
| Dubai | 14,902.40 AED |
The average income in Dubai is 4.2% higher than in Abu Dhabi. However, it’s crucial to keep in mind that these are averages throughout all sectors and positions. Actual salaries can vary broadly based totally on industry, experience, and particular employer.
Making Your Decision
When deciding between Abu Dhabi and Dubai, keep in mind your priorities. If budget is your primary problem, Abu Dhabi is probably the most desired. However, if you’re willing to pay a luxury lifestyle premium, Dubai can be a great fit.
Remember that individual reviews can vary substantially depending on your specific occasions, process, and life-style picks. It’s usually a good idea to visit each city to do thorough research before making your choice.
