This is probably the biggest concern and fear-factor most candidates have when considering a move to the UAE and it’s most definitely the one question that I’m guaranteed to be asked, every time.
Yes, it’s true, rent is going to be your biggest outgoing expense when living in either Dubai or Abu Dhabi, but then again, it probably is wherever in the world you live right now.
But, let’s strip it back a little and do some comparisons, as when you map it out, the rent prices here are no different to any other major city across the globe, in a lot of cases, it’s actually cheaper.
Now, I’ve based these comparisons on the average price for a one bedded apartment or condo, which would be around 800 sq.ft in size.
Firstly, we’ll start with Dubai, now the most desirable locations to live in Dubai are typically Dubai Marina or Palm Jumeirah. Both of these locations are central and easily connected to either a public-transport tram or metro, and even water-taxis. For a one bed apartment in either of these locations, it would cost you around 80-90k AED (€19-21.5k / $21.5-24.5k) per year. Next up in Dubai, would be somewhere considered to be the out-skirts, slightly outside of the hustle and bustle, somewhere like Jumeriah Village Circle, or JVC as it’s more commonly known, a one bed apartment here would likely set you back between 55 and 65k AED (€13-15.5k / $15-17.5k) per year.
If we then look at Abu Dhabi, the capital of the UAE, a sea-view, one bed apartment on Al Reem Island would cost between 55 and 65k AED (€13-15.5k / $15-17.5k) per year on average.
Now moving on to some of the other major cities and how they compare to this, let's begin with London. Now with London, it's only fair to compare both central and the outskirts, so firstly we'll look at a central location such as Chelsea Harbour, a one bed apartment here could set you back over 105k AED (€25k / $28.5k) per year. For the outskirts, we'll consider Highbury, North London, an apartment here would cost around 80k AED (€19k / $21.5k) per year to rent.
Next up we can consider Manhattan, New York, a one bed apartment in an area such as Soho would likely cost in the region of 110k AED (€26.5k / $30k) per year.
Amsterdam, The Netherlands would be around 80-90k AED (€19-21.5k / $21.5-24.5k) per year. Toronto, Canada around 60-70k AED (€14.5-17k / $16.5-19k) per year. Berlin, Germany between 75 and 85k AED (€18-20.5k / $20.5-23k) per year and lastly Sydney, Australia, costing between 75 and 85k AED (€18-20.5k / $20.5-23k) per year.
The point of this article wasn't to say "hey, look, it's cheaper here, pack your bags!", because in most cases, it probably isn't, however when you look at some of the prices in comparison to these other major cities, it isn't more expensive either... But there's also something to add here, as with nearly all apartments in Dubai and Abu Dhabi, your apartment block will have it's own swimming pool - perfect for kicking-back and unwinding at the weekends, a gym and in some cases, a spa. So, you could actually say that you get more for your money with an apartment in Dubai or Abu Dhabi...
Another option in the region, one which we see often with single candidates, or those who want to meet new people, is to apartment-share with prices starting from typically 40k AED (€9.5k / $11k) per year. For this, you'd typically have your own en-suite bedroom and share kitchen and lounge facilities in a well-maintained apartment block in a prime location.
Historically landlords in the UAE asked for rent payments to be made in one or two 'cheques', that are pre-dated when signing the tenancy agreement. However, nowadays landlords are more flexible than before, offering tenants the opportunity to pay for their rent in up to twelve payments. You can use the amount of payments to either reduce your annual rent cost (less payments, lower cost), or suit your personal needs and spread your payments over the year.
Taking the above in to consideration, along with the zero income-tax salaries, making the move to the UAE could put you in a great position to save for your future, or simply, to just enjoy life!
As mentioned above, the prices are based on an average cost of a one bed apartment at a size of circa 800 sq.ft. Prices were identified from multiple sources, including; Property Finder, Rightmove, Zoopla, NY Times, Pararius, PadMapper, Nestpick & realestate.com.au.