Dubai is a place that has repeatedly gained a lot of fame with its gaudy skyline and expensive living standards. It is well-known throughout the world for its costly living standards. The notoriety is not related simply to the fact of how high-end everything in the city is but is also a result of a few linked up factors. From the rise in luxury real estate prices to the changes brought about by booming tourism, and from high Downtown Dubai living costs, these factors combined to make Dubai one of the world’s most expensive cities. Here is a closer look at why Dubai commands such a premium.
- Luxury Real Estate
If there’s one thing that forms the basis of such an expensive cost of living in Dubai, it’s the luxury real estate. The city is known to house over-the-top properties and highly posh developments. Iconic landmarks such as the Palm Jumeirah and the Burj Khalifa-essentially architectural marvels-are also symbolic of Dubai’s luxury real estate market. Exorbitant demand for high-class residences in these prime locations drives property prices to unprecedented heights.
Housing comes at a very steep price in Downtown Dubai, which is a prestige address with a great skyline. The region harbors some of the world’s hottest real estate prospects replete with overly lavish apartments fronting the Burj Khalifa and luxurious homes in high-rise towers. It does not require the flows of foreign investors and expatriates seeking high-end living space to make demand higher and press the prices of property and rents upward.
- The Effect of Tourism
Tourism also remains one of the major determinants of the expensive standards of living in Dubai. Since Dubai is among the most visited cities in the world, its five-star facilities and unrivaled experiences attract tourists. For this reason, tourism in Dubai has overwhelming impacts on local prices in many sectors.
In regard to the cost of living in Dubai, the hospitality industry ranks among those fields affected by tourism. It also houses some of the most luxurious hotels and resorts, including Burj Al Arab and Atlantis The Palm. A stay in such places is significantly expensive, and the prices speak to the exclusivity, coupled with the opulence they have to offer. This high-profile tourism industry does not only hike the prices of accommodation but also trickles into the costs related to dining and entertainment. Accordingly, fine dining experiences, world-class shopping, and leisure activities of a premium class have to be paid for and are intended for tourists who pay more for deluxe services.
- Everyday Costs and Living Expenses
The high cost of living in Dubai is related not only to luxury property and tourism. For a number of reasons, prices for common goods and services of the city are considerably high. Dubai heavily relies on importation to have most of its products, from groceries to clothes and electronic gadgets. The costs for logistic and transportation then additional help to make their price higher.
Also, the high class of living in the city and its high demand for high-quality goods make prices for even the lowest-value goods very high. For example, grocery shopping may be highly priced in Dubai compared to other cities, since food items depend on imports and their shipment and storage are costly.
- Cost of Utilities and Transportation
Utilities and transportation are expensive, too. Because of Dubai’s hot climate, air conditioning runs almost constantly; therefore, electricity bills run high. Most of the city’s water supply is desalinated by very expensive procedures, adding to the utilities cost.
Transportation in Dubai may cost much as well. While modern public transport such as metro and buses is available, operating and maintaining a private vehicle is expensive, although the prices of petrol are relatively inexpensive. To this come the cost of car insurance, maintenance, and parking fees. The sprawled layout of Dubai and the high prestige associated with car ownership further raise transportation costs.
- Impact of the Expatriate Community
A high community of expatriates in Dubai is another reason for the city’s cost of living. In Dubai, most of its expatriates are working in well-paying jobs; hence, there is an increase in demand for high-end housing, international schools, and luxury goods. With such disposable income high, prices for almost everything have gone up since businesses try to exploit expatriate spending power.
Also, very often expatriates have to pay more for such services as healthcare and education. While public healthcare and schooling are provided for the Emirati nationals, expatriates usually have to resort to private services, which are considerably more expensive. Health insurance is also required and costly to add another layer to the overall cost of living in Dubai.
Conclusion
The Dubai city is tagged as an expensive city due to the sumptuous real estate, a growing tourism industry, and the expensive living costs in Downtown Dubai. The inclination of the city towards luxury and opulence impelled through its real estate market as well as through tourism marks its effects on costlier living and visiting.
These factors will help in understanding why Dubai charges such high prices for almost everything in life, living in a luxury high-rise to availing of tourism experiences. This will also help in covering all the expenditure aspects that manifest Dubai as a global luxury and exclusivity hub. The knowledge is going to help in planning a trip to this city by considering such expenses and thus allows the visitor to enjoy more of this unique city.
More Information:- Luxury Living
