Overview of Cost of Living Rankings

According to Mercer’s 2025 Cost of Living Survey, Dubai ranks 15th globally for expatriate living costs, a drop from 16th in 2024 due to stabilizing housing prices. In comparison:

• Hong Kong: 1st (highest)

• Singapore: 2nd

• London: 8th

• New York: 11th

Numbeo’s 2025 data shows Dubai’s overall cost of living index at 68.5 (New York = 100), indicating it’s about 31% cheaper than New York. These rankings reflect expenses for expatriates, including housing, groceries, and transport, but exclude international schooling and domestic help, which can add 20-30% in Dubai.

Salary Comparison

Dubai’s tax-free salaries provide a net advantage, but gross earnings vary by industry. Average monthly salaries (in USD) for mid-level professionals in finance/tech:

Dubai edges out in net income due to no income tax, though Singapore and Hong Kong are close. High earners (e.g., executives) in Dubai can net up to 20% more than in London or New York after taxes. However, bonuses and stock options are more common in Western hubs, potentially closing the gap.

Housing Costs

Housing is a major expense in all these cities, with Dubai offering more affordable options for luxury living. Average monthly rents for a one-bedroom apartment in the city center (in USD):

Dubai shines for families, with three-bedroom villas averaging $3,500—half the cost of similar in London ($7,000). Buying property? Dubai apartments start at $300,000, vs. $1.2 million in New York. However, utilities in Dubai (AC-heavy) add $150-250/month, comparable to Singapore.

Lifestyle Expenses

Lifestyle costs encompass dining, entertainment, transport, and groceries. Dubai’s blend of extravagance and value makes it unique—think Michelin-starred meals at mall prices.

Groceries and Dining

Monthly groceries for one person (USD):

• Dubai: 300 (fresh produce cheap; imports pricier)

• New York: 450

• London: 380

• Singapore: 420

• Hong Kong: 400

A three-course meal for two at a mid-range restaurant:

• Dubai: 100

• New York: 150

• London: 120

• Singapore: 110

• Hong Kong: 105

Dubai’s diverse food scene offers deals, but alcohol (imported) costs 50% more than in London.

Transportation and Entertainment

Public transport monthly pass (USD):

• Dubai: 80 (Metro efficient; taxis affordable at $0.80/km)

• New York: 130 (Subway reliable but crowded)

• London: 200 (Oyster card; high but extensive)

• Singapore: 90 (MRT world-class)

• Hong Kong: 70 (MTR unbeatable value)

Gym membership (monthly, USD):

• Dubai: 80

• New York: 100

• London: 70

• Singapore: 90

• Hong Kong: 85

Entertainment like cinema tickets ($12 in Dubai vs. $18 in New York) and beach clubs add flair without breaking the bank, though clubbing rivals Singapore’s prices.

Pros and Cons: Is Dubai Worth It?

Pros of Dubai:

• Tax-free net salary boosts disposable income.

• Affordable luxury housing and shopping.

• Year-round sun and safety (crime index: 16.1 vs. New York’s 49).

Cons:

• Extreme heat drives up AC costs.

• Healthcare and schooling for expat kids: $15,000+/year, on par with London.

• Dependency on cars in sprawling layout.

Compared to peers, Dubai offers 10-20% lower overall costs for a high-end lifestyle, ideal for savings-focused expats. Yet, for cultural depth, London or New York may justify higher spends.

Conclusion

In 2025, Dubai remains a cost-effective global hub, outpacing New York and London in net affordability while matching Singapore and Hong Kong in luxury access. For professionals earning $5,000+, it delivers a superior lifestyle-to-cost ratio. Use tools like Numbeo’s calculator for personalized estimates, and factor in personal priorities—be it skyscraper views or subway vibes. Whether relocating or investing, Dubai’s value proposition continues to shine.

Disclaimer: Costs are averages and subject to change; consult local experts for tailored advice.