Dubai, Sharjah, Abu Dhabi: Living Costs & Rent Breakdown

Thinking of moving to the UAE? Dubai is likely the first city that comes to mind. It’s popular with expats, thanks to its tax-free income, safety, and location near global markets. Since 2020, about 400,000 people have made Dubai their home, turning it into a cultural melting pot. But with rising costs and limited housing, is Dubai still the best choice... Or should you consider Abu Dhabi or Sharjah?

The Price of Dubai’s Growth

Dubai’s rapid growth has brought opportunities but also challenges. The housing market has been on the rise for 16 straight quarters, driven by an influx of high-paid professionals like bankers and lawyers.

According to JLL, rents for villas have increased by 86% since the pandemic. Dubai’s stock market has also been performing well, thanks to companies like Emirates NBD and Dubai Electricity & Water Authority.

However, the downside is that this surge in demand has made it harder to find affordable housing. Competition for homes and schools has increased, and traffic jams are common. “Dubai’s growth has led to higher rents and overall living costs,” says Manoj Dharmani, CEO of MigrateWorld - India. This is why some people are looking at Sharjah, where living costs are much lower.

Comparing Living Costs: Dubai, Abu Dhabi, and Sharjah

If you're planning to move to the UAE, it's essential to know how living costs differ between the major cities. Here's a quick comparison:

Housing (1-Bedroom Apartment in the City Center)

• Dubai: AED 5,000 to AED 12,000 per month
• Abu Dhabi: AED 4,500 to AED 10,000 per month
• Sharjah: AED 3,000 to AED 6,000 per month

Utilities

• Dubai: AED 600 to AED 1,500 per month
• Abu Dhabi: AED 400 to AED 1,200 per month
• Sharjah: AED 400 to AED 1,000 per month

Groceries

• Dubai: AED 700 to AED 1,200 per month
• Abu Dhabi: AED 600 to AED 1,100 per month
• Sharjah: AED 500 to AED 1,000 per month

Dining Out (Meal for Two, Mid-Range)

• Dubai: AED 100 to AED 150
• Abu Dhabi: AED 75 to AED 125
• Sharjah: AED 50 to AED 150

Transport (Monthly Public Transport Pass)

• Dubai: AED 300 to AED 400
• Abu Dhabi: AED 250 to AED 350
• Sharjah: AED 200 to AED 300

School Fees (Private Schools Per Year)

• Dubai: AED 15,000 to AED 100,000
• Abu Dhabi: AED 5,000 to AED 100,000
• Sharjah: AED 15,000 to AED 60,000

Healthcare (Basic Health Insurance Per Year)

• Dubai: AED 600 to AED 1,500
• Abu Dhabi: AED 500 to AED 1,300
• Sharjah: AED 400 to AED 1,000

Why Are People Moving to Sharjah?

With Dubai’s rising rents, many expats - especially those on lower incomes - are choosing to move to Sharjah, where the cost of living is more affordable.

“You have lower rents and overall costs of living,” says Prathyusha Gurrapu, head of research at Cushman & Wakefield Core. “We’re seeing more people move to Sharjah because Dubai rents are becoming unaffordable.”

For families, Sharjah offers better value for money. “You can get a larger home for 30-50% less than in Dubai,” says Dharmani. Sharjah also has a more traditional, family-friendly vibe, with a strong sense of community.

Downsides of Living in Sharjah

Though Sharjah is cheaper, there are trade-offs. The biggest downside is the commute. Many people who live in Sharjah work in Dubai, and during rush hour, the drive can take over an hour due to heavy traffic.

How Abu Dhabi Compares

Abu Dhabi offers a balanced option between Dubai and Sharjah. It’s less expensive than Dubai but more developed than Sharjah. The cost of living is slightly lower than in Dubai, and it has better public transportation and less traffic.

If you’re looking for a more relaxed lifestyle without the high costs of Dubai, Abu Dhabi could be the perfect middle ground.