New to the UAE capital? Or simply looking to make a move? Either way, with temperamental economic developments comes a need to know about the cost of living in Abu Dhabi.
With the introduction of more long-term UAE visas, every year sees an increasing number of people moving to the UAE. Add to that increasing accessibility with the development of Etihad Rail, the GCC rail, new destinations from Etihad, and so much more – this is the most happening place in the world to be at!
If relocation is on the agenda, knowing the average cost of living in Abu Dhabi can help you make an informed decision. That generally includes groceries, rents, schooling and other miscellaneous information.
So whether you’re a single person, a couple or a family moving to the capital, here’s a lowdown of the basic expenses and cost of living in Abu Dhabi that you should expect.
Your guide to the cost of living in Abu Dhabi
Average rent in Abu Dhabi
In any relocation, it’s the housing cost that’s always going to take up the most of your budget. It’s no different in Abu Dhabi, so the type of property and location you choose to live in can greatly impact your monthly rent expenses and cost of living in Abu Dhabi.
In the capital, you can find anything from studios to apartments and even hotel apartments within the city. If luxury and privacy are of concern, there are several spacious villas and gated communities on luxurious islands not too far off.
Generally, properties for rent in Abu Dhabi that are located on the mainland outskirts are more affordable. This includes areas like Khalifa City, Musaffah, etc.
When it comes to apartments for rent in Abu Dhabi, a 1-bedroom apartment in Khalifa City could come at a monthly rental cost of AED 3,833, on average. However, 1-bedroom apartments on Al Reem Island, another prime location, could cost around AED 7,000 per month on average. The difference being the communities at both places, while Khalifa City is considered more suburban, Reem Island has a mainly European community and is in what’s considered the ‘downtown’ of Abu Dhabi.
Another famous spot closer to Yas Island is Al Raha. Families renting 3-BHK villas in Al Raha Gardens will spend an average of AED 13,666. Comparatively, the same square footage in Al Reef could be around AED 9,333 per month on average.
Of course, there’s no one-size-fits-all. Buildings or villas with premium features like a private swimming pool or garden bring up the additional expenditure of maintaining these facilities. Essentially, areas like Khalidiyah or TCA in the city are perfect for those looking to live closer to their offices and save on rent.
For families looking for that little bit of exclusivity and amenities, areas like Saadiyat Island, Yas Island and Reem Island are top contenders in terms of privacy, views and accessibility. Although the rents are equally high, too.
| Location | Approx Rent |
|---|---|
| Apartment (1 bedroom) in City Centre | 5,474.52 AED |
| Apartment (1 bedroom) Outside of Centre | 4,073.48 AED |
| Apartment (3 bedrooms) in City Centre | 12,049.95 AED |
| Apartment (3 bedrooms) Outside of Centre | 8,782.58 AED |
It’s generally best to consider proximity to work and schools before making the final call!
Schooling in Abu Dhabi
Another prime factor when it comes to the cost of living in Abu Dhabi is the tuition fees for schools.
Given the diverse nature of the community in the emirate, schools in Abu Dhabi cater to all budgets and learning curricula. So whether it is British, American, International Baccalaureate (IB) or Indian (CBSE, ICSE) curricula, there is definitely a budget and location advantage that suits your needs.
Schools in Abu Dhabi that offer British, American and IB curricula tend to be more expensive. Fees for top schools, according to Numbeo.com reports, are as follows –
International Schools:
In the range of AED 35,000 to AED 120,000 per year, depending on the institution.
Premium Schools:
Top-tier private schools can charge significantly higher rates, with some exceeding AED 70,000 or even AED 80,000 per year.
Of course, all of this is not taking into account additional costs like transport to and from school, field trips and other excursions, books, uniforms, etc. If you’re looking to bring down your cost of living in Abu Dhabi, finding private schools within the city is an excellent option.
Healthcare in Abu Dhabi
It’s mandatory in Abu Dhabi for both employers and sponsors to provide health insurance for their employees and dependents, respectively.
Employers will definitely provide you with medical insurance, and in some cases, even for your family. If that is not the case, you are then required to purchase health insurance for yourself and your family.
The cost of medical insurance in Abu Dhabi will vary depending on the level of coverage and benefits. There are a lot of different plans to choose from, with the most basic option starting at AED 600 per person. A comprehensive medical plan from a well-known provider such as DAMAN Health costs at least AED 20,000 for a family of four.
It’s essential to look at health insurance premiums when looking at the average cost of living in Abu Dhabi.
Groceries cost in Abu Dhabi
Monthly grocery bills are synonymous with cost-of-living budgets. Luckily, Abu Dhabi has a host of options on that front as well. Of course, your food and lifestyle preferences will be the biggest factors that contribute to your monthly cost of groceries.
Top-tier supermarket chains in Abu Dhabi, such as Waitrose, Spinneys and Carrefour, will generally generate higher bills. More budget-friendly options with an equally amazing variety of produce are other chains like Choithrams, Co-Op and Lulu. However, there are spades of local grocery shops or baqalas around almost every corner for your daily needs.
Alternatively, aggregators like Talabat, Deliveroo and even Smiles home deliver groceries from their own warehouses or from any of the above chains mentioned. In some cases, they even arrive within 20 minutes, although you will spend a little more on delivery fees.
Monthly groceries in Abu Dhabi for a single person could average around AED 1000 – AED 1200, while families of four could find their cost of groceries in Abu Dhabi as high as AED 2,500. Of course, these can be flexible according to your preferences and needs.
Take a look at the average prices for pantry essentials
| GROCERY ITEM | COST |
|---|---|
| Milk (1 litre) | AED 7.09 |
| Loaf of White Bread | AED 5.34 |
| White Rice (1 kg) | AED 8.81 |
| Eggs (12, Regular) | AED 11.74 |
| Chicken Breast (1 kg) | AED 30.26 |
| Apples (1 kg) | AED 8.91 |
| Oranges (1 kg) | AED 6.86 |
| Tomatoes (1 kg) | AED 5.46 |
| Potatoes (1 kg) | AED 4.22 |
| Onions (1 kg) | AED 5.16 |
Abu Dhabi Utilities Cost
While most buildings in Abu Dhabi tend to include utilities with the rent, some places will record it separately.
Electricity and water connection, provided by the Abu Dhabi Distribution Company (ADDC), can significantly bump up your cost of living in Abu Dhabi, given high AC usage during summer.
A single person living in a studio apartment should budget a minimum of AED 500 for their monthly utility bills in Abu Dhabi. Families renting 3-bedroom villas in Abu Dhabi can expect this cost to be a minimum of AED 2,300.
While there aren’t too many ways to avoid these costs, choosing properties with fewer electricity-driven amenities could help. Of course, your TV and internet connection also add up. Etisalat, du and Virgin remain top service providers across the UAE, with different plans to suit your budgetary needs.
In all, it’s hard to generalise a standard cost of living in Abu Dhabi, especially when things can be so flexible. However, it would typically cost a single resident around AED 6,000 to AED 15,000 per month, while a family of four might need AED 18,000 to AED 25,000 or more per month.
FAQs about the cost of living in Abu Dhabi
Is Abu Dhabi cheaper than Dubai?
If you were to compare the cost of living between the emirates, according to Numbeo reports, Dubai is 6.6% higher than in Abu Dhabi (excluding rent). When it comes to rent, those can be as much as 19.3% higher! Generally, it’s safe to assume that everything else, including groceries, schooling, transport, etc., is relatively higher too – although utilities are fairly similar.
What salary is enough to live in Abu Dhabi?
A monthly income of around AED 20,000 to AED 25,000 is generally considered enough for a family of four, whereas AED 10,000 and more is average for a single person. This, of course, is subject to which areas you choose to live in and other lifestyle preferences such as schooling, groceries, etc.
Are utilities included in rent?
You will find a mixed bag on this, with villas or hotel apartments, etc, typically including utilities in the rents. However, in most standard apartments, tenants will need to register with the Abu Dhabi Distribution Company (ADDC) for electricity and water and set up their own internet service.