Dubai attracts thousands of OFWs every year because it promises a better quality of life in general. However, Dubai is also well known for the fact that it has one of the highest costs of living in the region, with housing often consuming a significant portion of an individual’s income.
For OFWs in Dubai, it is a top priority to find affordable housing, especially since they have to support their families back home on top of their own personal expenses. But finding an affordable home can be quite overwhelming, and there are several decisions that need to be made. It’s more than just renting a space to live; one must also consider proximity to the work place, transportation options and amenities.
Tips on Getting a Home in Dubai as an OFW
Understanding Dubai’s Housing Market
Dubai has a diverse housing market that offers diverse options tailored to different styles and budgets. You can choose to live in shared accommodations, private apartments, and more. The city has something for everyone, albeit the cost of living is considerably high, with rent accounting for 30 to 50 percent of an individual’s monthly income.
To those who can afford it, there are luxury apartments in areas like Downtown Dubai or Palm Jumeirah, but for most OFWs, these are simply far beyond reach. A typical OFW should consider looking into budget-friendly neighborhoods like Al Nahda, Al Qusais, or the International City. In these places, rental rates are more affordable.
You can also live farther away from the city. Putting into compromise your location can give you the chance to find better, more budget-friendly rates. These places include Jebel Ali or Muhaisnah.
Monthly Budget Breakdown for Housing and Living Expenses
To successfully manage your finances, it’s crucial to know what costs to expect. Here’s a breakdown of common expenses in Dubai and tips to manage them:
- Accommodation
- Rent for a one-bedroom apartment in the city center: AED 4,000 – 8,000
Consider areas like Dubai Marina for a bustling lifestyle, but prepare for higher rent. - Rent for a one-bedroom apartment outside the city center: AED 3,000 – 6,000
Suburban areas like Al Nahda or Mirdif offer more affordable options with good amenities. - Rent for a three-bedroom apartment (city center): AED 8,000 – 15,000
- Rent for a three-bedroom apartment (outside the city center): AED 6,000 – 10,000
Shared accommodations significantly reduce costs, with rents often split among tenants.
- Rent for a one-bedroom apartment in the city center: AED 4,000 – 8,000
- Food
- Meal at an inexpensive restaurant: AED 30
Explore local eateries and budget-friendly restaurants to save on dining out. - Three-course meal for two at a mid-range restaurant: AED 200
- Grocery shopping for one person (basic weekly list): AED 300 – 500
Visit local markets for fresh produce and discounted essentials.
- Meal at an inexpensive restaurant: AED 30
- Transportation
- Monthly public transport pass: AED 350
Dubai’s Metro and buses are affordable and convenient for daily commutes. - Average taxi fare: Varies
Use ride-hailing apps like Careem or Uber for occasional rides.
- Monthly public transport pass: AED 350
- Utilities
- Monthly electricity and water bill (1-bedroom): AED 500
Opt for energy-efficient appliances and habits to reduce costs.
- Monthly electricity and water bill (1-bedroom): AED 500
- Communication
- Mobile phone plan with data: AED 200
- High-speed internet for home: AED 300 – 500
Look for bundled packages for potential savings.
- Health Insurance
- Monthly premium for comprehensive health insurance: AED 500 – 1,500
Choose a plan that balances affordability and adequate coverage.
- Monthly premium for comprehensive health insurance: AED 500 – 1,500
- Savings and Remittances
- Monthly savings goal (20% of income): AED 1,000 – 2,000
Automate savings to build a financial cushion. - Monthly remittance to family: AED 1,000 – 3,000
Compare remittance services for the best exchange rates and fees.
- Monthly savings goal (20% of income): AED 1,000 – 2,000
- Leisure and Hobbies
- Budget for leisure activities: AED 500 – 1,000
Take advantage of free or low-cost attractions like Dubai’s parks, beaches, and cultural festivals.
- Budget for leisure activities: AED 500 – 1,000
Tips for Finding Affordable Housing
1. Consider Sharing Accommodation
Many OFWs opt to share housing to cut costs. This way, you can split rent and utility bills and significantly lower your monthly expenses. You can find listings for shared accommodations at Facebook groups and websites like Dubizzle.
2. Negotiate Rent and Terms
Landlords in Dubai are often open to negotiation, especially if you’re willing to pay rent annually instead of monthly. Be clear about your budget and try to negotiate favorable terms like free maintenance or utility coverage.
3. Research and Compare Neighborhoods
Do your research about which areas can fit your budget and lifestyle needs. For instance:
- Budget-friendly: Al Nahda, International City
- Family-oriented: Mirdif, Arabian Ranches
- Close to work hubs: Business Bay, Barsha Heights
4. Utilize Online Platforms
Websites like Bayut, Property Finder, and Dubizzle are excellent for comparing rental prices and finding listings that match your criteria. Be wary of scams and always verify the authenticity of the listing.
5. Work with Real Estate Agents
If you’re not familiar with the city, you can seek the help of trusted real estate agents that can simplify the process for you. To avoid being scammed, make sure that the agents are RERA-licensed.
6. Consider Company-Provided Housing
Some employers in Dubai offer free or subsidized accommodation as part of their employment package. Check with your employer to see if this is an option.
7. Opt for Public Transport Accessibility
Living near a Metro or bus station can save you time and money on transportation. Neighborhoods like Al Rigga and Karama are well-connected by public transport.
Balancing Costs and Comfort
While affordability is key, it’s important to find housing that offers a comfortable and safe environment. Consider factors like proximity to your workplace, access to amenities, and neighborhood safety.
Always read the tenancy contract carefully before signing. Look out for hidden charges like agency fees or security deposits, and ensure all terms are clearly outlined.
Indeed, it can be hard to find affordable housing in Dubai, but its not impossible. As mentioned in the article above, you need to do your research, consider shared accommodations, and prioritize your needs. It’s not impossible to find a comfortable living space that doesn’t break your bank.