Dubai vs Sharjah and Abu Dhabi: Rent, living costs, pros & cons explained

If you're considering a move to the UAE, Dubai is probably the first city that comes to mind. It’s long been a hotspot for expats, particularly Indians, thanks to its tax-free lifestyle, safety, and proximity to global markets. In fact, since 2020, around 400,000 people have moved to Dubai, making it a melting pot of cultures. But, with rising living costs and a housing crunch, is Dubai still the best option, or should you be thinking about other cities like Abu Dhabi or Sharjah?

Dubai’s growth comes at a price

The UAE’s economic growth, particularly in Dubai, has pushed the city to new heights, but this rapid expansion hasn’t been without its challenges. Dubai’s housing market has seen property values and rents increase for 16 consecutive quarters, largely driven by an influx of professionals like bankers and lawyers.

Real estate consultancy JLL reports that rents for single-family homes, or villas, have soared by 86% since the pandemic began. The city’s benchmark stock index, led by state-backed firms like Emirates NBD Bank and Dubai Electricity & Water Authority, has been among the top global performers this year.

However, the influx of well-paid professionals has resulted in intense competition for housing, pushing prices up and leading to a struggle for residents trying to find affordable accommodation. There’s also increased competition for school admissions, while traffic jams and limited public transport only add to the city's challenges.

“Dubai’s growth has led to higher rents and overall living costs,” Manoj Dharmani, CEO of MigrateWorld - India tells Business Standard. “This has prompted many people to consider other options like Sharjah, where living costs are significantly lower.”

What are the living costs across Dubai, Abu Dhabi, and Sharjah?

For those planning to move to the UAE, it’s essential to consider the cost of living, which can vary greatly between Dubai, Abu Dhabi, and Sharjah. Here’s a breakdown of the average costs across these cities, according to MigrateWorld, a global leader in immigration, residency, and citizenship by investment services:

Housing:

Dubai: AED 5,000 to AED 12,000 (approximately Rs 114,441 to Rs 274,660) per month for a one-bedroom in the city centre.

Abu Dhabi: AED 4,500 to AED 10,000 (approximately Rs 102,997 to Rs 228,883) per month for a one-bedroom in the city centre.

Sharjah: AED 3,000 to AED 6,000 (approximately Rs 68,665 to Rs 137,330) per month for a one-bedroom in the city centre.

Utilities:

Dubai: AED 600 to AED 1,500 per month for an apartment.

Abu Dhabi: AED 400 to AED 1,200 per month.

Sharjah: AED 400 to AED 1,000 per month.

Groceries:

Dubai: AED 700 to AED 1,200 per month.

Abu Dhabi: AED 600 to AED 1,100 per month.

Sharjah: AED 500 to AED 1,000 per month.

Dining out:

Dubai: AED 100 to AED 150 for a mid-range restaurant meal for two.

Abu Dhabi: AED 75 to AED 125.

Sharjah: AED 50 to AED 150.

Transport:

Dubai: AED 300 to AED 400 for a monthly public transport pass.

Abu Dhabi: AED 250 to AED 350.

Sharjah: AED 200 to AED 300.

Schooling:

Dubai: AED 15,000 to AED 100,000 per year for private schools.

Abu Dhabi: AED 5,000 to AED 100,000 per year.

Sharjah: AED 15,000 to AED 60,000 per year.

Healthcare:

Dubai: AED 600 to AED 1,500 per year for basic health insurance.

Abu Dhabi: AED 500 to AED 1,300 per year.

Sharjah: AED 400 to AED 1,000 per year.

Why are people moving from Dubai to Sharjah?

Many expats, particularly those on more modest incomes, are finding Dubai’s soaring rents too high to handle. This has prompted a migration to neighbouring Sharjah, where the cost of living is much lower.

“You have lower rents and overall costs of living,” said Prathyusha Gurrapu, head of research and advisory at Cushman & Wakefield Core. “We are seeing a clear shift as people move to Sharjah because Dubai rents have become unaffordable.”

Dharmani adds: “For families, Sharjah offers much better value for money. You can get a larger living space for 30-50% less than you’d pay in Dubai. It’s also a more family-friendly and traditional environment, with a strong focus on community and culture.”

What are the downsides of moving to Sharjah from Dubai?

While Sharjah offers clear financial advantages, there are downsides to moving from Dubai. One of the most significant drawbacks is the commute. Many Sharjah residents work in Dubai, and during rush hours, the commute can take over an hour due to heavy traffic.

“Commuting times are a major issue,” Dharmani explains. “Traffic jams are frequent, and public transport options are limited, meaning most residents have to rely on their cars or buses.”

Sharjah also has fewer job opportunities compared to Dubai, so many people still need to commute for work. Additionally, there are fewer entertainment and dining options in Sharjah, and access to international schools and healthcare can be more limited.

Can you buy property in Dubai, Abu Dhabi, or Sharjah?

For those considering a long-term stay in the UAE, buying property may be an attractive option, especially with the recent easing of rules in Sharjah for foreign ownership.

Dubai: Foreign nationals, including Indians, can purchase freehold properties in designated areas like Dubai Marina, Downtown Dubai, and Palm Jumeirah. The average cost for an apartment in Dubai ranges from AED 1.2 million to AED 2.5 million.

Abu Dhabi: Foreign ownership is limited to leasehold arrangements in designated areas like Al Reem Island and Saadiyat Island, where properties can be leased for up to 99 years. Apartment prices in Abu Dhabi range from AED 900,000 to AED 2 million.

Sharjah: Sharjah has relaxed its property ownership rules, allowing foreign nationals to buy properties on a 100-year renewable lease in certain areas like Al Mamsha and Tilal City. Property prices in Sharjah are about 40% lower than in Dubai, with apartments costing between AED 500,000 and AED 1.5 million.

Pros and cons of living in Dubai, Abu Dhabi, and Sharjah:

Dubai:

Pros:

  Excellent job opportunities, especially in finance and tech.

  Vibrant, international community.

  World-class amenities, entertainment, and dining.

Cons:

  High cost of living, especially housing.

  Heavy traffic and limited public transport.

  Competition for school admissions.

Abu Dhabi:

Pros:

  Slightly lower cost of living than Dubai.

  Family-friendly with good schooling options.

  Stability in government and oil-related jobs.

Cons:

  Limited entertainment compared to Dubai.

  Fewer expat-friendly housing areas.

Sharjah:

Pros:

  Most affordable cost of living in the UAE.

  Family-oriented with a focus on culture and community.

  Proximity to Dubai makes commuting feasible.

Cons:

  Long commuting times due to traffic.

  Fewer job opportunities, requiring most residents to commute to Dubai.

  Limited entertainment, dining, and healthcare options.

Which city is right for you?

In the end, whether Dubai, Abu Dhabi, or Sharjah is the right fit depends on your priorities. Dharmani puts it simply: “Dubai offers career opportunities and a vibrant lifestyle, but comes at a cost. Abu Dhabi offers stability and a family-friendly environment, while Sharjah provides affordability and a quieter, more traditional way of life.”

“Each city has its own benefits and challenges. It really depends on your priorities—whether it’s career advancement, family life, or a more affordable cost of living,” said Dharmani.