Dubai and London are two of the most desirable cities for expats, but the cost of living Dubai vs London differs sharply. Dubai is between 37% and 40% more affordable overall, while some 2025 data suggest London can be up to 60% more expensive depending on lifestyle and housing location.
London remains significantly higher in costs, particularly for housing and daily commuting. This guide breaks down the key cost differences to help expats understand where each city offers better value for their money.
- Overview: Is Dubai cheaper than London
- Rent and housing costs
- Property purchase prices
- Groceries and food costs
- Transportation costs
- Utilities and essential services
- Healthcare and insurance
- Key takeaways
- FAQs
Overview: Is Dubai cheaper than London
Dubai is significantly more affordable than London, with most cost-of-living indexes placing Dubai around 37–40% cheaper overall. Some 2025 figures even show London reaching over 60% higher living costs, driven largely by rent, transport, and taxation. London ranks among the top 10 most expensive global cities, while Dubai sits closer to the mid-range.
A lifestyle that costs £11,000 per month in London requires only £6,637 (AED 32,859) in Dubai. Meanwhile, enjoying Dubai’s premium lifestyle at around AED 41,000 per month would cost roughly AED 68,412 (£13,775) in London.
Dubai is cheaper in:
- Rent
- Groceries
- Transportation
- Utilities
- Taxes
London is more expensive due to:
- High rental and property prices
- Costly public transport
- Higher everyday costs
- Income tax and council tax
Rent and housing costs
Rent is one of the most significant cost differences between the two cities. Dubai offers lower prices for both city-centre and suburban apartments, although prime neighbourhoods can match London’s luxury prices.
Apartment rental comparison
Here’s a breakdown of typical apartment rental prices in Dubai versus London:
| Property type | Dubai (AED) | London (GBP) | Difference |
| 1-bed apartment (city centre) | 8,757 | 2,153 | Dubai is 15% cheaper |
| 1-bed apartment (outside centre) | 4,750 | 1,600 | Dubai is 40% cheaper |
| 3-bed apartment (city centre) | 15,200 | 4,200 | Dubai is 25% cheaper |
| 3-bed apartment (outside centre) | 10,500 | 2,800 | Dubai is 40% cheaper |
Premium location rentals
Below is an overview of rental costs in some of Dubai’s most sought-after neighbourhoods:
| Location | Annual Rent (AED) | Annual Rent (GBP) | Monthly Avg (AED) |
| Palm Jumeirah | 248,776 | 53,700 | 20,731 |
| Downtown Dubai | 187,880 | 40,500 | 15,657 |
| Dubai Marina | 138,208 | 29,800 | 11,517 |
| Dubai Sports City | 73,791 | 15,900 | 6,149 |
| Business Bay | 138,047 | 29,700 | 11,504 |
| Dubai Creek Harbour | 142,244 | 30,600 | 11,854 |
Insight: London’s housing costs are about 67% higher overall, but Dubai’s top luxury areas come close to London pricing.
Explore the Available Apartment for Rent in Dubai
-
Apartment
Listed 2 days ago
63,000 AED/year
LAST UNIT LEFT - READY TO MOVE IN - DEWA ONLY AC!!
Sandy Garden, International City Phase 2, Al Warsan 4, Al Warsan, Dubai
1
2
958 sqft
-
Apartment
Listed 1 week ago
85,000 AED/year
OPP CREEK HARBOUR - LAST UNIT LEFT - READY TO MOVE
Eastern Star Residence, Al Jaddaf, Dubai
2
2
1,017 sqft
-
Apartment
Listed 5 days ago
63,000 AED/year
DEWA ONLY AC - READY TO MOVE IN - LAST UNIT LEFT!!
Flamingo Z2 Tower, Arjan, Dubai
1
2
866 sqft
-
Apartment
Listed 1 day ago
190,000 AED/year
Inviting Creek Views | Family Dream Home | Vacant
Marsa Plaza, Dubai Festival City, Dubai
2
3
2,032 sqft
-
Apartment
Listed 1 day ago
385,000 AED/year
Private Terrace | Large Apartment | Vibrant Home
Marsa Plaza, Dubai Festival City, Dubai
3
5
4,032 sqft
-
Apartment
Listed 10 hours ago
150,000 AED/year
Exclusive Modern Residence I Burj Khalifa View
Celadon 1, Celadon, Central Park at City Walk, City Walk, Dubai
1
1
772 sqft
-
Apartment
Listed 1 day ago
1,100,000 AED/year
Contemporary Design | Ultra Luxury | Burj View
One Za'abeel The Residences, Zabeel 1, Zabeel, Dubai
3
5
2,436 sqft
-
Apartment
Listed 10 hours ago
250,000 AED/year
Elegant Home I Overlooking Central Park I Brand New
Celadon 1, Celadon, Central Park at City Walk, City Walk, Dubai
2
3
1,367 sqft
-
Apartment
Listed 3 days ago
285,000 AED/year
Creek Side Home | Wrap-around Balcony | Large Apt
Marsa Plaza, Dubai Festival City, Dubai
3
5
2,708 sqft
-
Apartment
Listed 3 days ago
66,150 AED/year
| Brand New | Community View | JVT
The Community, Jumeirah Village Triangle, Dubai
1
1
491 sqft
Property purchase prices
Buying property in Dubai is significantly cheaper than in London, particularly in central areas.
| Property type | Dubai (AED/m²) | London (GBP/m²) | Price difference |
| Apartment in the city centre | 17,859 | 13,404 | London is 253% more expensive |
| Apartment outside the centre | 1,351 | 3,763 | London is 178% more expensive |
Explore the Available Apartment for Sale in Dubai
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Apartment
Listed 3 days ago
4,400,000 AED
Furnished 2BR | Full Burj View | Corner Unit
Act Two, Act Towers, Opera District, Downtown Dubai, Dubai
2
2
1,325 sqft
-
Apartment
Listed 2 weeks ago
4,700,000 AED
Best Priced Type B | Boulevard View | Study
Burj Khalifa, Burj Khalifa Area, Downtown Dubai, Dubai
2
3
1,639 sqft
-
Apartment
Listed 2 weeks ago
8,996,792 AED
Investment | Luxurious 3 Bed Apartment in Downtown
Sofitel Residences Downtown, Burj Khalifa Area, Downtown Dubai, Dubai
3
5
3,571 sqft
-
Apartment
Listed 9 hours ago
3,100,000 AED
Stunning Unit with Full Sea View | High Floor
Creek Edge Tower 1, Creek Edge, Dubai Creek Harbour (The Lagoons), Dubai
2
2
1,178 sqft
-
Apartment
Listed 9 hours ago
3,500,000 AED
Fully Furnished | Unique Layout | Corner Apt
Creek Gate Tower 1, Creek Gate, Dubai Creek Harbour (The Lagoons), Dubai
3
3
1,479 sqft
-
Apartment
Listed 1 day ago
750,000 AED
Ready Large Studio | Smart Layout | Prime Location
AZIZI Riviera 15, AZIZI Riviera, Meydan One, Meydan, Dubai
studio
1
468 sqft
-
Apartment
Listed 2 days ago
22,999,999 AED
Luxurious | Half-Floor | Canal Views
Volante, Business Bay, Dubai
2
3
5,043 sqft
-
Apartment
Listed 2 days ago
10,814,000 AED
Dubai Marina | Apartment | Prime Location
Six Senses Residences, Dubai Marina, Dubai
4
5
3,318 sqft
-
Apartment
Listed 2 days ago
22,900,000 AED
Furnished | With Plunge Pool | Ultra Luxury
sensoria at Five Luxe, Jumeirah Beach Residence, Dubai
4
5
4,019 sqft
-
Apartment
Listed 2 days ago
29,000,000 AED
Full Palm and Ocean Views | Dual-Sided Penthouse
Six Senses Residences, Palm Jumeirah, Dubai
3
3
4,481 sqft
Groceries and food costs
Groceries are generally cheaper in Dubai, and the cost of living in Dubai vs London shows that London’s food prices are around 25–30% higher on average in 2025. Everyday essentials such as vegetables, poultry, dairy, and grains typically cost less in Dubai than in London.
Dining out is broadly comparable, but Dubai often offers better value for international cuisines at similar or slightly lower price points. In both cities, imported or speciality items tend to be more expensive.
Transportation costs
Transportation is one of the most significant cost gaps between the two cities. London’s transport costs are more than twice as high as Dubai’s in many comparisons, with some analyses placing London at roughly 150–160% more expensive and Dubai around 60% cheaper overall.
Transportation breakdown
While Dubai’s public transport is more affordable, car ownership costs (including insurance, maintenance, depreciation, and parking) should still be factored into the overall budget.
London:
- High public transport fares (Underground, buses, trains)
- Expensive commuting for daily workers
- Additional costs such as congestion charges and ULEZ fees
Dubai:
- Affordable metro and bus services
- Cheaper taxis compared to London
- Petrol is significantly cheaper
- Many expats prefer owning a car
Utilities and essential services
Basic utilities in Dubai are generally similar to or moderately cheaper than in London on an annual basis; however, the heavy use of air conditioning in summer can push monthly bills higher during peak months.
Some cost-of-living statistics suggest that, for an 85m² apartment, monthly utilities in Dubai can be around 40–50% lower, but actual costs vary widely based on usage and season.
| Utility | Dubai (AED) | London (GBP) | Dubai (GBP equivalent) |
| Electricity, water, cooling, garbage (85m² apt) | 760 | 280 | 153 |
| Mobile phone plan (10GB+) | 220 | 70 | 50 |
| Home internet | Variable | Variable | Similar pricing |
Dubai residents typically experience their highest utility bills between May and October, due to increased air conditioning usage, while the winter months tend to be significantly cheaper.
Healthcare and insurance
Healthcare expenses can be higher in Dubai without employer insurance, but service speed is generally better.
Dubai:
- Mandatory health insurance for all residents
- Employers typically cover basic plans
- Private healthcare costs vary by provider
- Faster access to specialists
London:
- NHS provides subsidised healthcare
- Private insurance is available but expensive
- Longer waiting times for some services
Key Takeaways
Dubai is generally much more affordable than London, with the cost of living Dubai vs London showing overall expenses around 40% lower, and some comparisons indicating London can be up to 60% more expensive, especially when rent, transport, and taxes are included.
Housing, groceries, everyday transport, and many utilities are noticeably cheaper in Dubai, although premium neighbourhoods such as Palm Jumeirah and Downtown Dubai can approach London-level pricing for luxury homes.
London’s higher rental prices, costly public transport, and income and council tax make a big difference to monthly budgets, while Dubai’s zero income tax and relatively lower day-to-day costs help expats stretch their income further.
For most individuals and families, this means that a similar lifestyle typically requires a significantly higher monthly budget in London than in Dubai.
FAQs
Yes. Most 2025 comparisons place Dubai around 37–40% cheaper overall, with London sometimes exceeding 60% higher living costs when rent and tax are included.
Housing. London’s rent and property prices are significantly higher, while Dubai offers more affordable options across most neighbourhoods.
Yes. Public transport and taxis in Dubai cost far less than in London, even before factoring in congestion charges and daily commuting costs.
Often yes, but it depends on usage. Electricity and water can be cheaper overall, though summer air-conditioning can raise bills.
Without employer insurance, yes. London benefits from NHS access, while Dubai relies on insurance-based private healthcare with faster service but higher direct costs.
