Dubai became the 15th most expensive city according to Mercers 2024 Cost of Living City Ranking

In the most recent Mercer poll, Dubai rose three spots to rank as the fifteenth most expensive city globally for foreign workers. The post-pandemic spike in property rentals is a major contributing factor to the growing cost of living in Dubai, the financial hub of the area.

Rentals for three-bedroom apartments grew by 15% annually, while total rentals jumped by 21% between 2023 and 2024, according Mercer's 2024 Cost of Living City Ranking. It's one of the biggest increases ever recorded in large cities worldwide.

According to real estate consulting firm Asteco, the number of foreign workers has caused rents to skyrocket since the epidemic. In famous neighbourhoods including Jumeirah Islands, Palm Jumeirah, Dubai Sports City, Dubai Hills Estate, and Damac Hills, prices have soared by 100%.

The cost of food and personal care goods are two more reasons driving up the cost of living in Dubai. According to the study, between March 2023 and March 2024, the cost of fuel, haircuts and blue jeans dropped, while the price of eggs, olive oil and coffee increased.

Hong Kong and Singapore topped the global rankings, with Basel, Geneva, and Zurich in Switzerland completing the top five. Conversely, Islamabad in Pakistan and Abuja and Lagos in Nigeria were listed by Mercer as the least costly locations for foreign workers.