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Is Abu Dhabi cheaper than Dubai?

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
City Center 1,980 AED 2,264 AED +14.3%
Outside Center 1,641 AED 1,193 AED -27.3%

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, property in the city center of Dubai is about 14.3% more expensive, you can find better deals outside the center than in Abu Dhabi, which costs around 27.3% less.

When considering the purchase of property, it is important to factor in additional costs such as service charges, which may vary significantly between buildings and areas. Dubai typically has a high service fee due to the prevalence of luxury development with comprehensive features.

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 utilities (915 sq ft apartment) 532 AED 812 AED +52.6%
Internet (60 Mbps) 381 AED 366 AED -3.9%

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%. 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 4%.

Food and Groceries

Your grocery bill in Dubai will likely be about 5.5% higher than in Abu Dhabi. Here’s a more detailed comparison of common grocery items:

Item Abu Dhabi Dubai Difference
Milk (1 gallon) 26.15 AED 26.48 AED +1.3%
Bread (1 lb) 4.76 AED 4.89 AED +2.7%
Rice (1 lb) 3.97 AED 4.12 AED +3.8%
Eggs (12) 11.50 AED 11.59 AED +0.8%
Chicken (1 lb) 13.14 AED 15.58 AED +18.6%
Beef (1 lb) 27.50 AED 29.15 AED +6.0%
Apples (1 lb) 3.55 AED 3.72 AED +4.8%
Banana (1 lb) 3.18 AED 3.31 AED +4.1%
Tomato (1 lb) 2.73 AED 2.86 AED +4.8%
Potato (1 lb) 2.27 AED 2.36 AED +4.0%
Water (1.5 liter bottle) 2.13 AED 2.21 AED +3.8%

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 restaurant prices in Dubai are about 3.7% higher than in Abu Dhabi. 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 6.50 AED +160%
Monthly pass 92.50 AED 322.50 AED +248.6%
Taxi start (normal tariff) 5.00 AED 12.00 AED +140%
Taxi 1km (normal tariff) 3.00 AED 2.50 AED -16.7%
Taxi 1 hour waiting (normal tariff) 30.00 AED 30.00 AED 0%
Gasoline (1 gallon) 11.00 AED 11.00 AED 0%

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) 2,228 AED 3,299 AED +48.1%
International Primary School (yearly) 45,318 AED 48,802 AED +7.7%

The difference is particularly noticeable for preschool education, with Dubai being nearly 50% more expensive. For international primary schools, the gap narrows to about 7.7%.

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 14,004 AED
Dubai 14,592 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.

Further Reads

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