The Real Cost of Living in Abu Dhabi - How Much Do You Really Need ?

Summary

This video offers a comprehensive guide for those considering relocating to Abu Dhabi, detailing the financial aspects of living in the city. It covers the cost of accommodation, utilities, transportation, groceries, education, and leisure activities, providing average price ranges and highlighting that expenses vary based on lifestyle and location. The video also touches on the importance of health insurance, the necessity of planning finances in a tax-free environment, and the impact of having a family on overall costs.

Takeaways

• 💰 The cost of living in Abu Dhabi can vary greatly depending on lifestyle, location, and household size.
• 🏠 Accommodation is likely to be the biggest expense, with high rents and the need for a significant upfront payment.
• 📈 Abu Dhabi has the highest GDP per capita in the UAE, making it an expensive city, but it is also a tax-free country aside from a 5% VAT on goods and services.
• 🏡 Rent prices for apartments can range from 60K to 220K AED per year, with significant variations based on location and amenities.
• 🛋 Furnished properties are uncommon, and furnishing costs will depend on personal taste and budget, with options for secondhand or new purchases.
• 💡 Utilities like water and electricity are metered, with an initial deposit required and variable costs based on usage and property characteristics.
• 📱 Communication costs are relatively high, with limited service providers and the need for international call plans due to app restrictions.
• 🚗 Public transport is limited, making car ownership or taxis more practical, with associated costs for car rental, purchase, or toll fees.
• 🍽️ Food and dining options are diverse, with higher prices for imported brands and premium dining experiences, including alcohol.
• 🏫 Education and childcare are costly, with significant fees for international schools and nannies, increasing with the child's age and educational level.
• 🏥 Health insurance is mandatory and can be a significant expense, especially for families, with costs varying based on coverage and provider.

Q & A

What are some key factors that determine the cost of living in Abu Dhabi?

The cost of living in Abu Dhabi depends on your lifestyle, the area you choose to live in, the number of people in your household, and other personal preferences.

How does Abu Dhabi's tax-free status affect the cost of living?

Although Abu Dhabi is a tax-free country, there is a 5% VAT on goods and services. This means no income tax or National Insurance contributions, but individuals must manage their finances without a pension or insurance scheme.

What are the typical costs for accommodation in Abu Dhabi?

Accommodation costs vary greatly depending on the area and type of property. A one-bedroom apartment can range from 60,000 to 100,000 AED per year, while a three-bedroom apartment can cost between 110,000 and 220,000 AED per year.

What are the common types of properties available for rent in Abu Dhabi?

In Abu Dhabi, you can find a variety of properties from shared flats to villas, with the majority being unfurnished. Fully furnished properties are less common.

How does the location affect the rent prices in Abu Dhabi?

Rental prices vary by location, with areas like Al Reem and Yas Island being more expensive compared to suburban areas like Arif, where you can find more affordable rents.

What are the additional costs associated with renting a property in Abu Dhabi?

When renting, you may need to pay a 5% deposit of the annual rental value and possibly a security deposit. Utilities, such as water and electricity, are additional costs and are typically not included in the rent.

How much should one expect to pay for utilities like water and electricity in Abu Dhabi?

The cost of utilities depends on usage and the size of the apartment. For electricity, it's about 28 fils per kilowatt-hour, and for water, it's 8 to 10 fils per cubic meter.

What are the transportation options and their approximate costs in Abu Dhabi?

Transportation options include buses, taxis, and personal cars. Bus tickets cost 2 AED, taxi fares start at 30 AED for 10 km, and car rentals start around 2,000 AED per month. Petrol is relatively cheap, at about 3.30 AED per liter.

How does the cost of groceries compare to Europe in Abu Dhabi?

Grocery prices in Abu Dhabi are generally comparable to Europe, except for certain imported brands which can be significantly more expensive.

What are the costs associated with education for children in Abu Dhabi?

Education costs can be high, with kindergarten fees in a French school starting at 29,000 AED per year, and British or American schools often charging double that amount. As children progress, tuition fees increase.

What are some of the common leisure activities and their costs in Abu Dhabi?

Leisure activities include shopping at malls, dining out, visiting amusement parks, and going to the beach. Costs can vary, but a movie ticket is around 45 to 60 AED, a restaurant meal can be similar to European prices, and amusement park tickets start from 345 AED per adult.