27/01/2025

Is It More Expensive to Live in Dubai or London? 

When it comes to choosing a place to live, two of the most iconic cities in the world often come up: Dubai and London. Both are global hubs, offering a wealth of career opportunities, luxury living, and a cosmopolitan lifestyle. But when it comes to the cost of living, how do these two cities stack up against each other? 

Renting

Overall, housing in Dubai tends to be less expensive than in London. For example, a one-bedroom apartment in the city centre of Dubai costs around AED 8,220 (roughly £1,800) per month, while the same apartment in central London can set you back about £2,200, which means it costs nearly 22% more to rent in London. 

In Dubai, the cost of living can be more manageable, especially when it comes to housing, allowing people to access larger or more luxurious properties for less money. However, London's real estate market tends to be more expensive across the board, particularly in sought-after central locations like Mayfair, Kensington, and Chelsea.

Buying property

If you're looking to buy property, the difference is just as stark. The average price per square metre in central London is about £15,900, while in Dubai, it’s much lower, around AED 24,650 (around £5,400). That’s a significant difference with Dubai coming in at 66% less per square metre for similar property types.

Whether you’re considering an apartment or a villa, the price tag in London will almost certainly be higher for similar properties. For instance, if you were to buy a 100 square metre apartment in London, you’d be looking at a cost of around £1.59 million. Meanwhile, the same-sized apartment in Dubai would cost around £540,000, allowing you to purchase a similar property for a fraction of the cost.

Salaries 

The average monthly salary in London is around £3,250, while in Dubai, it’s approximately £3,125. While the salaries in both cities are similar, Dubai offers more affordable housing options, meaning a greater portion of your salary can be allocated toward other expenses or savings.