The cost of living across the world has been on a rise over the past 10 years. Dubai hasn’t been immune to inflation, but it still costs far less to live here compared to several of the world’s other major expat hubs. Dubai has, over the past few years, steadily moved out of the list of the most expensive expat destinations. Expatistan positions Dubai as the 57th most expensive city to live in, out of the 211 global cities that it ranks. Founded in 2009, Expatistan.com claims it is the world’s biggest collaborative cost-of-living database of prices. Numbeo, another crowd-sourced cost-of-living database that claims to be the world’s largest, positions Dubai’s cost of living at #284 among the 563 cities whose data it processes.

Both the indices rank Dubai as a far more affordable city to live in than other expat hotspots, including Hong Kong, London, New York and Singapore. Until a few years ago, renting a house in Dubai was considered an expensive proposition. Demand from expat professionals far exceeded the supply of apartments and villas that the city had at the time, pushing up rental prices. Several expats chose to live in and commute daily from neighbouring emirates, where rentals were comparatively more affordable.

A construction boom since the mid-2000s and a couple of real estate corrections saw Dubai’s property and rental prices stabilise. This resulted in a reverse migration from neighbouring emirates while some expats already residing in the emirate upgraded to bigger houses and swankier neighbourhoods.

Disclaimer: Property prices, both sale and rent, fluctuate based on several factors, including market sentiment and, primarily, demand and supply. While DMSH took care to double-check all prices at the time of publishing, prices may move up or down even in a short period. We take no responsibility for the accuracy of market-listed data.

Most affordable and expensive Dubai neighbourhoods

Finding an apartment to rent in Dubai is far easier today than it was a decade or so ago. Tenants are spoilt for choice, and there’s one to suit every taste and budget. The demand-supply equation has now squarely moved in the favour of tenants, with Dubai landlords offering discounts and a host of incentives such as flexible payment options, rent-free periods and zero-commission rentals.

Dubai tenants are spoilt for choice. The city has an apartment or villa to suit every taste and budget

Deira, International City and Dubai Production City (IMPZ) are among the most affordable neighbourhoods to rent an apartment in Dubai. At the time of writing this article (July 2021), studio apartments in Deira could be rented starting at Dh14,000 a year (Dh1,167 per month) while those in IMPZ and International City started at Dh15,000 (Dh1,250 per month).

Homes on the Mohammed bin Rashid Boulevard in Downtown Dubai are among the most well-appointed and expensive properties in the city

On the other end of the spectrum are properties on the Mohammed bin Rashid Boulevard in Downtown Dubai, where a 5-bed apartment was listed for Dh1.45 million a year (Dh120,833 per month) in The Address Residence Fountain Views and a 2-bed in the Armani Residence was on offer for Dh999,888 per year (Dh83,324 per month).

Deira, International City (pictured on the left) and Dubai Production City (IMPZ) are among the most affordable neighbourhoods to rent an apartment in Dubai

For those looking to rent a townhouse or villa, the most affordable options are in Dubai Industrial Park. At the time of writing this article, a one-bed villa in Sahara Meadows 2 was advertised for Dh22,000 per year (Dh1,833 per month). That works out to $5,989 a year, or $499 per month.

For slightly bigger yet still affordable options, Dubai’s Al Qudra area offers some bargain opportunities. A new, 3-bed villa in Vardon Akoya starts at a tempting price of Dh36,500 per year (Dh3,042 per month).

For those looking to enjoy the ultra-luxury Dubai lifestyle, an 18,000 sq ft, 7-bed signature villa in Palm Jumeirah will set you back by Dh4.5 million a year (Dh375,000 per month). Umm Suqeim, Al Safa, Al Barari and Emirates Hills are some of the other high-end neighbourhoods to rent a luxury house.

For those looking to enjoy the ultra-luxury Dubai lifestyle, an 18,000 sq ft 7-bed signature villa in Palm Jumeirah is among the most expensive houses to rent in the city

There are no designated areas in Dubai where expats cannot rent a house even as there are guidelines for bachelors renting apartments within certain family communities. Particularly popular neighbourhoods for expats include Dubai Marina, Dubai Silicon Oasis, Business Bay, Downtown Dubai and Jumeirah Village Circle. Those interested in independent villas can usually find them in Arabian Ranches, The Springs, Mirdif and other gated communities. Dubai has several well-established suburban neighbourhoods. These include areas like Town Square, Al Furjan, Dubai Silicon Oasis and International City.

Dubai’s popular neighbourhoods

According to Dubai Statistics Centre, approximately 3.4 million people reside in Dubai. Of these, a majority (1.18 million) belong to the 25-34 age group while 818,000 are aged between 35 and 44. Another 528,000 are aged 45+ while 290,000 belong to the 18-24 age group. Where do these population segments choose to live? According to Bayut, a property listing website, people aged 45 and above are mostly in search of quiet lifestyles, reflected in self-sustaining suburban communities. Those within this age group also often look for laid-back leisure amenities such as private pools, beaches or even golf clubs.

Jumeirah Lakes Tower (JLT) is one of the most popular residential neighbourhoods in Dubai alongside Dubai Marina and Jumeirah Beach Residence (JBR)

Jumeirah Lakes Tower (JLT) is one of the most popular residential neighbourhoods in Dubai alongside Dubai Marina and Jumeirah Beach Residence (JBR). Rents in these areas are relatively expensive compared to the rest of Dubai, with the average rental price for a one-bedroom apartment in JLT being around Dh60,000 per year or Dh5,000 per month. JLT has 80 towers with different styles and sizes.

The towers surround two lakes and a park and are set back from Sheikh Zayed Road. Dubai Marina has remained consistently the most popular living destination for expats and has a wide variety of residential towers to choose from. JLT and Dubai Marina share two Metro stations among them while Marina and JBR share a tram system.

Damac Hills offers a mix of apartments, townhouses and villas. Apartment rentals start at Dh24,000 per annum while independent homes for rent start at Dh45,000

Damac Hills offers a mix of apartments, townhouses and villas. Apartment rentals start at Dh24,000 per annum while sale prices start at Dh310,000. Independent homes are available for rent starting at Dh45,000. Mudon is a closely-knit, gated community located at the intersection of Al Qudra Road and Emirates Road. Here, independent and semi-independent homes are available to rent starting at Dh85,000 per annum while apartment rentals start at Dh34,000 per year.

Emirates Hills is for a high-end living with the community set around the Montgomerie Golf Club. The area offers large six-bedroom villas and renting homes will cost you at least Dh750,000 per year.

Emirates Hills is for a high-end living with the community set around the Montgomerie Golf Club

Offering a mix of luxury villas and apartments, Palm Jumeirah is ideal for a lavish waterfront lifestyle with private beaches. One can rent a villa for a starting price of Dh220,000 per annum and the rent for apartments begins at Dh45,000.

Offering a mix of luxury villas and apartments, Palm Jumeirah is ideal for a lavish waterfront lifestyle with private beaches

Business Bay has a wide choice of budget-friendly, spacious two and three-bedroom apartments. Next to Downtown Dubai and just behind Sheikh Zayed Road, the neighbourhood is sought-after by expats.

With the development of the Dubai Canal, there are lovely water views from several towers in Business Bay

With the development of the Dubai Canal, there are lovely water views from several towers. The main buildings to consider here include Executive Towers, Damac Towers, Majestine, Windsor Manor, Westburry and Bay’s Edge.

In Downtown Dubai, home to Burj Khalifa, The Dubai Mall, Dubai Opera and the Dancing Fountains, three-bedroom apartments are available in Damac Maison and Upper Crest. Two-bedroom apartments are available along Sheikh Mohammed bin Rashid Boulevard, including the Old Town.