The Philippines, a vibrant Southeast Asian country, offers a low cost of living that appeals to visitors and expats from across the globe. Its affordability rivals other regional destinations like Indonesia and Thailand, making it a compelling choice for retirees, digital nomads, and expatriates. While cities like New York and Singapore remain far more expensive, the Philippines presents a diverse range of living costs based on location and lifestyle preferences.
Here is a UAE-centric guide to understanding the cost of living in the Philippines, with insights into specific cities and practical tips for budgeting your monthly expenses.
How to Calculate the Cost of Living in the Philippines
The cost of living includes key expenses such as food, housing, healthcare, and transportation. Platforms like NomadList and Teleport provide comparative data to understand living expenses for locals and expats.
For example, while a software engineer in Manila may earn approximately AED 59,470 per year, their counterpart in Singapore earns significantly more, at AED 180,200. Such differences highlight the Philippines’ lower cost structure, especially for those with foreign incomes.
Currency in the Philippines
The official currency of the Philippines is the Philippine peso (PHP), symbolized as ₱. One peso is divided into 100 centavos, with coins available in denominations ranging from 1 centavo to 20 pesos. Banknotes range from 20 to 1,000 pesos. For this guide, costs are presented in UAE dirhams (AED) for easier understanding.
Cost of Living in Major Cities of the Philippines
As in most countries, urban areas like Manila are more expensive than rural regions. Factors such as housing, food, and transportation create cost variations. With online shopping widely available, certain prices remain consistent nationwide.
1. Manila
As the capital city, Manila offers a bustling urban lifestyle with extensive international connectivity.
- Cost for Expats: AED 5,361/month
- Cost for Locals: AED 3,855/month
- Housing: AED 3,466 for a studio apartment
- Food: AED 18.35 for dinner; AED 4.40 for coffee
- Other Costs: Public transport at AED 73.40; gym memberships at AED 158
2. Cebu City
Known for its central location and vibrant culture, Cebu is both a tourist hotspot and a growing tech hub.
- Cost for Expats: AED 4,630/month
- Cost for Locals: AED 3,195/month
- Housing: AED 3,122 for a studio apartment
- Food: AED 10.65 for dinner; AED 2.45 for coffee
3. Baguio
With its cool climate and scenic mountain surroundings, Baguio offers a quieter lifestyle.
- Cost for Expats: AED 5,493/month
- Cost for Locals: AED 2,989/month
- Housing: AED 2,565 for a studio apartment
- Food: AED 18.80 for dinner; AED 4.52 for coffee
4. Davao
Situated in the south, Davao is an affordable city known for its agricultural produce and proximity to natural attractions like Mt. Apo.
- Cost for Expats: AED 3,515/month
- Cost for Locals: AED 2,261/month
- Housing: AED 1,780 for a studio apartment
- Food: AED 16 for dinner; AED 4.48 for coffee
Key Factors Influencing Living Costs
Housing
Housing costs vary widely. Urban centers like Manila and Cebu are pricier than smaller cities or rural areas. Expats on short-term rentals may pay more than locals with long-term leases. It is important to note that foreign nationals cannot own land in the Philippines, though they can purchase condominium units.
Food and Drink
The Philippines is renowned for its affordable seafood and vibrant street food culture. While dining out is inexpensive, international brands like McDonald’s may charge higher prices. A cappuccino in Manila, for instance, costs about AED 10.65, while a domestic beer is just AED 3.12.
Healthcare
Local citizens benefit from PhilHealth, the government’s universal healthcare system. Expats, however, will need private insurance, costing between AED 93 and AED 4,000 annually. UAE residents considering long-term stays should evaluate insurance options carefully.
Transportation
Public transportation is economical, with options like the iconic Jeepney costing just a few dirhams per ride. Major cities also offer MRT and LRT train systems, while smaller cities rely on cycle rickshaws and tricycles. Buses connect cities, but personal vehicles remain rare due to high maintenance costs.
FAQs for UAE Residents Considering the Philippines
1. Is the Philippines a good retirement destination for UAE residents?
Yes, the affordable cost of living, warm climate, and friendly culture make it an excellent choice, especially for those with foreign incomes.
2. How does the cost of living compare to the UAE?
The Philippines is significantly cheaper than the UAE, especially for housing, food, and transportation.
3. Can UAE residents buy property in the Philippines?
Foreign nationals cannot own land but can purchase condominiums under certain conditions.
4. What is the best city for expats?
Manila is ideal for its connectivity, while Cebu offers a mix of affordability and modern amenities. Davao is the most economical choice.
5. How can I send money to the Philippines from the UAE?
Use reliable services like Remitly or UAE Exchange to transfer money with ease and favorable rates.
