Cost of Living in Dubai vs Toronto
Table of Contents
Introduction
Hey everyone! In today’s article, we’ll be talking about a topic that has been on our mind since we moved from Canada to Dubai: the cost of living. Having lived in both countries, We’ve often wondered how Toronto stacks up against Dubai, and we’re sure many of you are curious too.
We’ll be diving into some numbers from Numbeo, the world’s largest cost-of-living database, to give you a detailed comparison between these two iconic cities. Whether you’re thinking of moving, or just curious about what life is like in Dubai compared to Toronto, this is for you!
Now, let’s get into it.
Also, here’s a video on the same topic with some insights from our co-founder, Shayan Nasiri.
1. Rent: City Center vs. Outside the City Center
Let’s start with one of the biggest monthly expenses—rent. Depending on where you decide to live, renting in Dubai can either be more expensive or cheaper than in Toronto. Here’s the breakdown:
1-Bedroom Apartment (City Center): Renting a one-bedroom apartment in the heart of Dubai is 16% more expensive than in Toronto. This means that if you’re looking to live in a bustling part of the city, Dubai’s rent might surprise you with its higher cost.
1-Bedroom Apartment (Outside the City Center): On the other hand, renting outside the city center in Dubai is 16% cheaper than in Toronto. So if you’re okay with living a bit further from the city action, Dubai becomes the more affordable option.
3-Bedroom Apartment (City Center): If you’re moving with family or need more space, renting a three-bedroom apartment in the city center in Dubai will be 20% more expensive than in Toronto.
3-Bedroom Apartment (Outside the City Center): But here’s where it evens out—outside the city center, a three-bedroom in Dubai is only 6% more expensive than in Toronto.
So depending on the kind of lifestyle you’re after, your rent could either be higher or lower in Dubai. City dwellers will find Dubai pricier, but those living in suburban areas will appreciate the savings.
2. Buying Real Estate: Major Differences
Now, if you’re thinking of buying property, here’s where things get really interesting. Canadian real estate, especially in big cities like Toronto, has skyrocketed in price over the past few years. Comparatively, buying real estate in Dubai is far more affordable.
Let’s break it down:
Price per Square Meter (City Center): In Toronto, buying property in the city center is a whopping 118% more expensive than in Dubai. The average price per square meter in Toronto is $14,316 CAD, compared to Dubai’s $6,500 CAD. That’s a huge gap!
Price per Square Meter (Outside the City Center): If you’re looking to buy outside the city center, the difference is even more dramatic. In Toronto, it’s 182% more expensive to purchase real estate outside the city center compared to Dubai.
If you’re seriously considering purchasing property, it’s clear that Dubai offers much better value compared to Toronto.
3. Food: Dining Out and Groceries
Next, let’s talk about food—both dining out and groceries.
Inexpensive Restaurant: Eating out at an affordable restaurant in Toronto is 74% more expensive than in Dubai. So, if you enjoy dining out on a budget, Dubai has the edge.
Mid–range Restaurant: A meal for two at a mid-range restaurant is 7% more expensive in Toronto than in Dubai, which isn’t too big of a difference.
Fast Food: Even fast food is pricier in Toronto! A combo meal at McDonald’s is 15% more expensive than in Dubai.
But when it comes to groceries, the difference is staggering:
- Milk: 61% cheaper in Dubai.
- Bread: 71% cheaper in Dubai.
- Tomatoes: A whopping 128% cheaper in Dubai.
- Chicken: 47% cheaper in Dubai.
- Beef: 38% cheaper in Dubai.
Overall, groceries in Dubai are significantly cheaper, which is surprising given the city’s reliance on imports. Dubai’s efficient trade infrastructure likely plays a role in keeping these costs low.
4. Transportation: Getting Around
Another key area to consider is transportation. Whether you’re hopping in a taxi or filling up your gas tank, Dubai tends to be more affordable than Toronto.
Taxis: Taxis in Dubai are 78% cheaper than in Toronto. So, if you rely on cabs to get around, this is a big win for Dubai.
Public Transportation: Overall, public transport is less expensive in Dubai than in Toronto, making commuting much more budget-friendly.
Gas: Dubai also takes the cake when it comes to fuel prices—gas is 41% cheaper in Dubai. No surprise here, given the UAE’s oil-rich status.
5. Fitness & Leisure
Now, let’s talk about fitness and leisure activities like gym memberships and going to the cinema.
Gym Memberships: In Dubai, gym memberships can be 42% more expensive than in Toronto. However, many buildings in Dubai come equipped with free gym facilities for residents, so you might not even need to pay for a membership.
Tennis Courts: Renting a tennis court for an hour is 54% more expensive in Dubai than in Toronto.
Cinema Tickets: Prices for leisure activities like cinema tickets are roughly the same in both cities, so no major difference here.
6. Overall Cost of Living
After assessing all these expenses, Numbeo calculates that the cost of living in Toronto is 14.4% more expensive than in Dubai. But that’s not the full picture, because we also need to factor in income and taxes, which can significantly affect your disposable income.
7. Comparing Salaries and Taxes
Let’s break down the potential income difference between the two cities. For this comparison, we’ll use an annual salary of $250,000 CAD.
Toronto: If you earn $250,000 in Toronto, you’ll face federal taxes that add up to about $94,800 CAD. After taxes, your take-home income would be around $155,156 CAD, or roughly $12,929 CAD per month.
Dubai: On the other hand, in Dubai, there is no personal income tax, so if you earn $250,000 CAD, you’ll keep the full amount—$250,000 CAD. That’s a massive difference, and when you combine it with Dubai’s lower cost of living, the savings start to add up fast.
8. Beyond the Numbers: Other Considerations
Of course, cost isn’t everything. Let’s talk about some of the other factors that might influence your decision to move to either city.
Safety: Both Toronto and Dubai are known for being safe cities, but Dubai often ranks higher in terms of overall safety and lower crime rates.
Standard of Living: Dubai offers a luxurious standard of living, from modern skyscrapers to world-class amenities. On top of that, the weather is a huge perk if you love sunshine year-round.
Opportunities: Dubai’s business environment is booming, especially for entrepreneurs and professionals in sectors like tech, real estate, and tourism.
Conclusion: Is Dubai Worth Considering?
After comparing the cost of living and tax advantages between Toronto and Dubai, it’s clear that Dubai offers significant financial benefits, particularly when it comes to taxes, real estate, and everyday expenses. Add to that the business opportunities, lifestyle, and climate, and Dubai becomes an attractive option for anyone considering a move.
So, if you’re thinking about making the switch, why not give Dubai a shot? Whether you’re looking to set up a business, enjoy a tax-free salary, or simply experience a different lifestyle, Dubai has a lot to offer.
And if you’re ready to take the plunge, our team at GenZone is here to help! We specialize in helping people relocate, set up businesses, and secure residency in Dubai. Book a call with us using the link in the description, and let’s make your Dubai dream a reality!
