Renting in the UAE isn’t quite the same as in many other countries. While you’ll find a wide range of properties to suit different budgets, the way rent is paid can be a big adjustment for immigrants moving to the UAE.
At Remtily, we believe that understanding these costs can help you budget more effectively and avoid financial surprises. This will allow you to stay financially stable and ensure you’re always able to send money home for any reason.
Why budgeting for rent in the UAE is crucial
The UAE’s unique rental payment structures—and higher costs—make budgeting for rental essential when you’re planning on moving to Dubai, Abu Dhabi, Sharjah, or any other of the Emirates.
One reason for this is the high cost of living; rent in the UAE is likely much higher compared to those in your home country. For example, a one-bedroom, unfurnished apartment in the centre of Mumbai costs around INR 60,000 per month (approximately £540), while the equivalent property in Dubai will set you back more than AED 8,000 (around £1,680).
On top of that, when you start renting in the UAE, you’ll likely be asked to cover your annual rental in two payments. This is often done using post-dated cheques, which you’ll give to your landlord at the start of the rental year. Practically, this means that you only pay rent once every three to six months.
Some landlords are starting to accept direct debit payments and money transfers, but it isn’t yet universal practice. This means you’ll need to have a substantial nest egg available to cover your rental payments at the outset of your rental period.
Rental market trends in key UAE expat areas
Real estate is big business in the UAE, and rental prices in popular expat destinations have been steadily increasing over the past few years:
| Emirate | Year-on-year rental increase 2023–2024 |
| Dubai | 21% |
| Abu Dhabi | 4% |
| Sharjah | 35.38% |
How to set your rent budget
Rent is likely to be one of your biggest expenses in the UAE, so setting a clear budget based on your salary is essential. With prices rising and upfront payments common, knowing exactly what you can afford helps you stay in control. A well-planned budget ensures you can cover rent comfortably while still managing your other financial priorities—even on a tight budget.
Calculate your rent as a percentage of income
A good rule of thumb is to keep rent at 30% or less of your monthly income. This ensures you have enough left over for essentials like food, transport, and savings.
For example, if you earn AED 15,000 per month, your ideal rent budget would be AED 4,500 or less. If rent exceeds this, you may need to adjust your housing expectations or cut costs elsewhere.
Using this percentage-based approach can help you plan ahead and avoid overspending to ensure that you’re financially stable throughout your lease.
Additional rent costs to be aware of in the UAE
There are a few additional costs that you need to be aware of beyond your base rent if you’re going to budget effectively:
- Security deposit: Landlords often require a 5% to 10% security deposit. This is typically refunded when you return the property in good condition.
- Agency fees: If you use a real estate agent to find an apartment or home, expect to pay a commission of 5.25% of the annual rent.
- Tenancy registration: In Dubai, you have to register your tenancy contract with the Ejari system. You’ll have to pay a registration fee of AED 220 to do this.
- Utility deposits: A deposit is usually required to set up your utilities. For example, in Dubai, you have to pay a deposit (up to AED 2,000) and a connection fee (AED 100).
- Housing fee: Some emirates, like Dubai, impose a housing fee equivalent to 5% of your annual rent, divided into 12 monthly instalments and added to your utility bills.
- Cooling fees: Some properties use district cooling systems, with fees determined by consumption and provider rates.
Practical steps for budgeting rent
When you’ve just moved to the UAE, paying the initial rental lump sum can be a challenge. Of course, there are plenty of ways to overcome this.
Many new immigrants stay in short-term accommodation, with some opting to split rent with roommates in an apartment. Others make an international money transfer to Dubai from their home country or explore salary advances from employers to help them cover upfront costs.
Once you’re ready to move into more long-term housing, the first thing you’ll need to do is set clear financial priorities. Review your total income and decide on a realistic percentage to allocate toward rent, balancing this with other essentials like food, transport, and savings.
Next, create an expense tracker. List all fixed costs—rent, utilities, internet, and transport—alongside variable expenses like groceries and entertainment. Many banks in the UAE offer budgeting tools that categorise spending, making it easier to monitor the money flowing into and out of your account.
The third thing you’ll want to do is build up your savings to ensure you’re ready to make those big rental payments when the time comes. It’s usually best to automate this process so that you don’t have to think about it.
Planning ahead and sticking to a plan, like a zero-based budget, will help to ensure that you can comfortably manage rent payments while staying financially stable in the UAE.
Strategies to reduce your housing costs in the UAE
Renting in the UAE can feel expensive, but there are plenty of ways to make it more affordable. With the right approach, you can secure a comfortable home that fits your budget. A little planning goes a long way in making rent more manageable.
Affordable neighbourhoods: Finding the right fit
Finding an affordable neighbourhood in the UAE can really help to keep your rent costs down. Here are five budget-friendly areas across the country’s most popular emirates for immigrants:
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- International City, Dubai: Known for its country-themed clusters, this area offers some of the lowest rental rates in Dubai, with studios starting at around AED 26,000 per year.
- Al Nahda, Dubai: Straddling the border between Dubai and Sharjah, Al Nahda provides easy access to both emirates and rental prices starting at around AED 32,000 per year.
- Al Shamkha, Abu Dhabi: Located near Zayed International Airport, Al Shamkha offers some of the most affordable rental properties in Abu Dhabi.
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- Al Ghadeer, Abu Dhabi: On the border of Abu Dhabi and Dubai, you can rent townhouses or apartments in Al Ghadeer from around AED 40,000 per year.
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- Al Butina, Sharjah: A densely populated area home to many expatriate families and young professionals, Al Butina rentals start at around AED 15,000 per year.
Renting in these and other well-priced neighbourhoods can help you find a home that aligns with both your budget and lifestyle preferences.
Tips for negotiating rent
It is possible to negotiate a better rental price in the UAE, especially in a market or areas where there are loads of vacant properties.
The first thing you’ll need to do is educate yourself about the average price of properties in the area that you want to live in, as well as the amenities that they come with. This will give you a good idea of what’s reasonable to ask for when negotiating with your landlord.
Another strategy is to negotiate for a multi-year lease or to offer multiple payments upfront. This can often help you to secure a better rate, as reliable long-term tenants are usually less hassle for landlords.
If your landlord won’t budge on the rental price, you could also negotiate for other perks. Some property owners may be open to covering maintenance costs, including free parking, or even offering a rent-free period at the start of your lease.
Adapting to the cost of living in the UAE
Living in the UAE comes with a unique financial trade-off: No income tax means more take-home pay, but it also contributes to a higher cost of living. Many services that might be subsidised in other countries—such as healthcare and education—are private and can be costly.
Utilities and lifestyle expenses
Housing will likely be your biggest expense, followed by groceries, dining out, transport, and utilities. While public transport is affordable, it’s often not very convenient, so many residents choose to own a car, which comes with fuel, insurance, and maintenance costs.
Then there’s entertainment. Whether you’re going out for brunch, joining a gym, or attending Holi Festival in Dubai, doing things in your free time in the UAE can be pricey. So, it’s always best to earmark a portion of your budget for spending money.
Setting aside a financial safety net
Given these costs, good financial planning is essential. What’s more, having a solid savings plan and emergency fund ensures you can handle unexpected expenses, job transitions, or even the need to send money home. Be sure to set money aside as often as possible to build a financial safety net.
Managing finances efficiently as a renter
Finding and budgeting for rental accommodation in the UAE can feel daunting at first, but with the right planning, you can manage your finances efficiently as a renter in the UAE.
Whether you’re negotiating better terms, choosing a more affordable neighbourhood, or setting up a solid savings plan, a well-thought-out approach ensures you can cover your rent comfortably while still enjoying life in your new home.
FAQs
What is the best way to budget for rent?
You should allocate a maximum of 30% of your monthly income to rent. Then, create a detailed budget that includes all expenses—utilities, groceries, transportation—to ensure that you’re realistically able to afford this amount.
How much of my salary should I spend on rent in Dubai?
Just like anywhere else in the world, it’s best to keep your rental expense to one-third of your monthly income on rent in Dubai. Given Dubai’s higher cost of living, sticking to this guideline is crucial if you’re looking to create some financial stability.
How much is rent in UAE per month?
Rent in the UAE varies by location and property type. In Dubai, a one-bedroom apartment in the city center averages around AED 8,500 per month, while it’s approximately AED 5,500 outside the centre. Keep in mind that rent is usually paid every six months in the UAE, so you will have to save these monthly amounts and pay a lump sum to your landlord.
How can you live cheaply in the UAE?
One of the best ways to make living in the UAE more affordable is by renting in less expensive Emirates or neighbourhoods. You can also cook at home rather than dining out to reduce your food costs and use public transport instead of buying your own car to save on fuel and maintenance costs.