For Indians hoping to move abroad, Dubai is usually at the top of their list. This city attracts families and professionals with its tax-free salaries and international lifestyle. But beyond all the glamour lies a practical question: How much does it cost to live in Dubai compared to India?
While comparing the cost of living in Dubai vs India, you will notice a glaring difference. In India, daily essentials are comparatively cheaper than in Dubai, where even rentals and property prices cost more.
However, Dubai balances its significant expenses by offering higher salaries, a secure and hygienic environment, world-class infrastructure, and a premium lifestyle.
In this article, we’ll take a closer look at the cost of living in Dubai versus India, from housing to transportation and the quality of living.
- Key factors impacting the cost of living in Dubai vs India
- Comparative monthly cost breakdown
- Detailed category comparison
- Quality of life and lifestyle differences
- Who should consider moving to Dubai?
- Tips to optimise the cost of living in Dubai
- Key takeaways
- FAQs
Key factors impacting the cost of living in Dubai vs India
Cost of living goes beyond grocery bills and rentals. Multiple factors impact how far your income stretches and the lifestyle you can realistically afford.
Let us take a look at the top factors.
Currency exchange rates
The first issue many Indians face upon arrival in Dubai is the difference in exchange rates.
As of 2025, 1 Dirham (AED) is equivalent to roughly ₹24.04 (INR).
Consequently, even small purchases may seem expensive when converted to Indian rupees.
For instance, the cost of a shawarma in Dubai is more than the value of a full vegetarian Indian thali. A Dubai restaurant may typically charge 30 AED for a shawarma, while a wholesome vegetarian restaurant-served thali in India costs nearly ₹600 per person.
However, as previously noted, salaries in Dubai offer a structured form of compensation to cover the higher living costs. Additionally, the absence of income tax in Dubai widens this difference.
Once you start living in Dubai, you need to stop converting everything into Indian Rupees (INR) and only apply the local currency (AED). In short, what really matters is your purchasing power, which is the portion of your salary spent on daily expenses.
Average salaries in Dubai vs India
If Dubai is so expensive, why do people keep migrating there? The answer lies in the higher tax-free salaries this city offers.
If your average monthly net salary in India after tax is 1,833 AED, your average monthly net earnings in Dubai will approximately equal 11,572 AED. This works out to a difference of nearly 84%.
While your gross pay may be higher when working in Dubai, your significant housing expenses can negate this higher earning potential benefit. To give you a clearer picture, you must earn around triple your Indian salary to maintain a similar purchasing power when residing in Dubai.
For instance, if a Backend Developer’s annual salary is ₹50 lakhs in Dubai compared to ₹33 lakhs in India, the former may not include a housing allowance. Your additional housing expense can correspondingly reduce your savings potential when in Dubai.
Tech professionals may receive lower annual salary hikes when working in Dubai than in India. However, the large yearly bonuses distributed in Dubai can offset this difference.
Price of goods and services
This is an essential factor that significantly impacts the finances of expats residing in Dubai. Everyday essentials and utilities are considerably more expensive in Dubai than in major Indian cities.
For example, one litre of regular milk costs 6.72 AED in Dubai, compared to 2.52 AED in India. One dozen eggs is priced around 11.48 AED in Dubai and 3.44 AED in India. One kg of onions costs nearly 4.42 AED in Dubai, compared to approximately 1.63 AED in India.
Similarly, your basic monthly utility bills for an 85 sqm apartment work out to around 666 AED in Dubai, as against nearly 146 AED in India. If a monthly mobile phone plan costs 14 AED in India, you are likely to pay 216 AED for the same in Dubai. High-speed internet packages cost 369 AED in Dubai when compared to around 28 AED in India.
Even when it comes to eating out at an inexpensive restaurant, your meal will cost considerably more in Dubai (35 AED). In India, you may pay around 8 AED to enjoy a similar meal. So, broadly, you pay a higher sum to enjoy Dubai’s premium standard of living.
But don’t worry, if it’s about the food, not the price, you will find plenty of Indian restaurants in Dubai.
Quality of life
- World-class infrastructure
- Efficient public transport system
- Ultra-low crime rate
- Reliable public services
On the other hand, India offers:
- Better affordability
- Cultural familiarity
- Strong sense of community
Family support and local community networks make life vibrant in India, even if infrastructure and public service quality fall short when compared to Dubai standards.
Some value Dubai’s modern efficiency, while others cherish India’s homely comfort. In short, there is no one-size-fits-all answer.
Comparative monthly cost breakdown in Dubai vs India
Almost everyone wishes to know one thing at the end of the day: How much will I be spending per month in reality?
Well, this answer depends on different factors. Your lifestyle is the most significant factor, among others. Of course, rent will take up the most significant chunk of your monthly budget. This is usually followed by other expenses, such as:
- Utilities
- Internet
- Food
- Transportation
- Healthcare
In contrast, in India, your daily expenses are lower. You will pay less for:
- Groceries
- Eating out
- Mobile data
Here is a tabular comparison of the cost of living in Dubai vs India.
| Parameter | Dubai (AED) | India (AED) |
| Average monthly per person cost of Living (without rent) | 1,500-3,500 | 670-1,340 |
| Transportation (monthly pass) | 200 | 33 |
| Basic utilities (85m² apartment) | 666 | 146 |
| Monthly mobile plan | 216 | 14 |
| High-speed internet package | 369 | 28 |
| Monthly rental (1 BHK City Centre apartment) | 6070 | 608 |
Detailed category comparison
By now, you know that the cost of living in Dubai is generally higher than in India, but Dubai compensates with higher tax-free salaries and a more luxurious lifestyle. But let’s break it down more and take a look at each expense in detail.
Accommodation
Rent constitutes a big chunk of living expenses in Dubai.
- The monthly rental for a one-bedroom city-centre apartment in Dubai is around 6,070 AED.
- If you move outside the city centre, you will pay around 4,181 AED per month for a similar apartment.
- For a three-bedroom apartment in Dubai’s city centre, your monthly rental is around 12,595 AED.
- For a similar apartment outside Dubai’s city centre, the rent you will need to pay is nearly 9,087 AED.
If you’re planning to move, explore apartments for rent in Jumeirah Village Circle (JVC) or apartments for rent in Al Furjan — both are popular and moderately priced communities in Dubai.
In contrast, if you live in India, you will bear the following monthly rental expenses:
- Renting a one-bedroom apartment located in the city centre will cost you around 608 AED.
- If you move outside the city centre, your monthly rental for a similar apartment will come down to 398 AED.
- For a three-bedroom apartment in a city centre, the rental is around 1,383 AED.
- For a similar apartment outside the city centre, you may need to pay a monthly rental of 903 AED.
Also, it’s more expensive to buy an apartment in Dubai. The price per sqm for an apartment in Dubai’s city centre is approximately 23,980 AED. In contrast, the cost price per sqm in India for a similar location is only 5,496 AED. The per sqm prices drop for apartments located outside the city centre. In Dubai, be prepared to pay around 13,940 AED instead of 3,027 AED in India.
Food
Groceries in Dubai are mostly imported and hence, expensive. Your monthly grocery expenses will depend mainly on your individual spending habits. In India, groceries are mostly home-grown and therefore, cost less.
For instance, one kg of bananas costs about 7 AED in Dubai as against roughly 3 AED in India. You are likely to pay around 5 AED for one kg of tomatoes in Dubai, while the cost in India will be around 2 AED.
A three-course meal for two at a mid-range Dubai restaurant may cost you 250 AED, while you can enjoy a similar meal for around 50 AED in India. This works out to an almost 80% difference in dining costs. Similarly, a combo meal at a Dubai fast-food joint is priced at around 35 AED as against 14 AED in India.
Transportation
- A one-way local transport ticket is 5 AED in Dubai and 1.24 AED in India.
- For a monthly pass, you may pay around 200 AED in Dubai and roughly 33 AED in India.
- Taxi fares start at 12 AED in Dubai and 3.31 AED in India.
- The per km taxi tariff is higher in Dubai at 2.5 AED, while it is only 1.03 AED in India.
- However, one litre of gasoline is cheaper in Dubai (about 3 AED) than in India (around 4 AED).
Bear in mind that there is an efficient public transportation system in Dubai with various options to pick from no matter where you are going. Major Indian cities now offer convenient modes of transport, such as metro services and buses, in addition to taxis and auto-rickshaws.
Utilities
- Basic monthly utilities comprise:
- Electricity
- Cooling
- Heating
- Water
- Garbage clearance
Expect to pay an average of 666 AED towards your monthly utility bills in Dubai, as against approximately 146 AED in India. Here, the cost difference in basic monthly utilities works out to approximately 78%.
These utility expenses may further rise in Dubai’s summer when air-conditioning usage is considerably higher.
Healthcare cost
In Dubai, all residents, including expats and their dependents, must have valid health insurance. Employers are also legally obligated to provide their employees with health insurance coverage.
In India, having health insurance is not compulsory for every resident. Employers, however, need to provide their employees with group health insurance coverage.
A private doctor will charge a significantly higher consultation fee in Dubai than in major Indian cities.
Quality of life and lifestyle differences
Dubai is admired for its:
- Modern amenities
- Secure and hygienic environment
- Cosmopolitan lifestyle
- Premium shopping
- International dining
- Multiple leisure options
India comparatively offers:
- Strong community support
- Rich traditions
- Cultural familiarity
- Flexible lifestyle
- Lower costs
While Dubai will appeal more to career-focused professionals, India attracts those who prioritise a family-oriented lifestyle.
Needless to say, Dubai also has plenty of opportunities for families. In other words, if you’re career-oriented and can take your family with you, don’t worry. There are countless housing options available, great restaurants, and activities for families in Dubai.
Who should consider moving to Dubai?
Dubai is ideal for:
- High-income professionals who can avail themselves of company benefits.
- Families seeking international education.
- Individuals or couples who value global exposure and modern amenities.
Tips to optimise the cost of living in Dubai
- Housing: Avail employer-provided accommodation or allowances.
- Transport: Use public transportation or carpool.
- Food: Shop wisely, buy local, and cook at home.
- Healthcare: Take comprehensive insurance.
- Budgeting: Track your daily expenses to avoid unnecessary overspending.
Key takeaways
Your rent is usually the most considerable expense when living in Dubai. Utilities and daily expenses typically follow this. While expenses in Dubai are high, so are the tax-free salaries. However, a higher income may not necessarily guarantee maximum savings, given the high cost of living in Dubai.
Your savings potential in Dubai largely depends on your lifestyle choices. Daily living in India is comparatively more affordable. Even when earning potential is lower, the scope to maximise your savings is higher in India.
Simply put, Dubai is suitable for high-income families and professionals with higher spending power. Rentals are steep, and if you do not budget properly, your savings may be limited despite earning a tax-free, higher income.
Families seeking long-term stability benefit from India’s affordable living, strong community support, and cultural richness.
In the end, compare the cost of living in Dubai vs India to decide which place best suits your earning potential, lifestyle preferences, and career goals.
FAQs
Yes, especially in terms of monthly rentals, basic utilities, and daily expenses.
Not unless your earning potential and employer benefits significantly exceed Dubai’s high cost of living. Saving here primarily depends on your lifestyle choices.
Tier-two Indian cities like Jaipur and Ahmedabad are comparatively cheaper to live in, offering affordable modern amenities.
To reduce your cost of living in Dubai, you can opt for company-provided accommodation, use public transportation, buy local produce, and track your daily expenses.
Yes, in Dubai, you will comparatively enjoy a better lifestyle with superior amenities, healthcare, and infrastructure.
