Cost Comparison 2025

DubaivsLuxembourg

United Arab Emirates
Luxembourg

Overall

💰

+6.3%

Dubai is 6.3%more expensive

Rent

🏠

0.0%

Housing is 0.0% same

Dining

🍽️

+20.0%

Restaurants 20.0% pricier

Groceries

🛒

+17.1%

Food shopping 17.1% more

Comparing the cost of living between Dubai, United Arab Emirates and Luxembourg, Luxembourg reveals significant insights for anyone considering relocation or travel in 2025. Our comprehensive analysis shows that Dubai is more expensive than Luxembourg by approximately 6.3%. This comparison covers essential living expenses including housing, food, transportation, and utilities, providing you with a complete picture of what to expect financially in each city.

Key Cost Differences

Housing costs in Dubai are similar than in Luxembourg. A one-bedroom apartment in Dubai's city center costs around AED 8,000, while the same in Luxembourg is approximately €2,000.

Dining out in Dubai offers significant savings compared to Luxembourg. An inexpensive restaurant meal costs AED 40 in Dubai versus €20 in Luxembourg.

Public transportation in Dubai is more expensive, with monthly passes at AED 350 compared to €0 in Luxembourg.

Grocery shopping in Dubai is more affordable by approximately 15%. Basic items like milk, bread, and eggs show lower prices across the board.

Monthly Budget Breakdown

When breaking down monthly expenses, a single person in Dubai can expect to spend approximately AED 2,334 per month (excluding rent), while in Luxembourg, the same lifestyle would cost around €600. For families, these figures increase significantly, with a family of four requiring about AED 8,169 monthly in Dubai versus €2,101 in Luxembourg. These estimates include groceries, dining out, transportation, utilities, and entertainment, providing a realistic picture of day-to-day living costs in each city.

Detailed Cost Comparison

Item
Dubai, United Arab Emirates
Luxembourg, Luxembourg

🏠 Housing Costs (Monthly Rent)

1BR City Center
AED 8,000
€2,000
1BR Outside Center
AED 5,000
€1,600
3BR City Center
AED 15,000
€3,800

🍽️ Food & Dining

Meal, Inexpensive Restaurant
AED 40
€20
Meal for 2, Mid-range Restaurant
AED 300
€90
Cappuccino
AED 20
€4
Domestic Beer (0.5L)
AED 50
€5

🛒 Groceries

Milk (1L)
AED 6
€1
Bread (500g)
AED 5
€2
Eggs (12)
AED 10
€4
Cheese (1kg)
AED 40
€18

🚌 Transportation

One-way Ticket
AED 8
€0
Monthly Pass
AED 350
€0
Taxi Start
AED 12
€5
Gasoline (1L)
AED 3
€2

💡 Utilities & Internet

Basic Utilities (85m²)
AED 600
€200
Internet (60 Mbps)
AED 400
€50
Mobile Minute
AED 1
€0

Tips for Moving Between Cities

For those considering a move from Dubai to Luxembourg, the cost savings can be substantial, particularly in housing and daily expenses. However, it's important to factor in salary differences and job opportunities. Conversely, moving from Luxembourg to Dubai requires careful financial planning. Consider negotiating salary adjustments that reflect the higher cost of living, and research neighborhoods outside the city center for more affordable housing options while maintaining reasonable commute times.

Quality of Life Indices

Dubai

Cost of Living Index80
Rent Index75
Purchasing Power Index110

Luxembourg

Cost of Living Index85
Rent Index75
Purchasing Power Index120

Frequently Asked Questions

Is Dubai more expensive than Luxembourg?

Yes, Dubai is approximately 6.3% more expensive than Luxembourg overall. The biggest differences are in housing and restaurant prices.

How much salary do I need in Dubai compared to Luxembourg?

To maintain the same standard of living, you would need approximately 1.1x of your Luxembourg salary when living in Dubai. For example, if you earn $50,000 in Luxembourg, you'd need about $53,125 in Dubai for a comparable lifestyle.

What are the biggest cost differences between Dubai and Luxembourg?

The most significant cost difference is in dining out. Restaurant prices vary by about 17%, which can significantly impact your entertainment budget. Transportation and utilities show notable variations between the two cities.

Which city is better for expats and digital nomads?

Luxembourg offers better purchasing power, making it more attractive for those earning in strong currencies. However, Luxembourg provides lower living costs, which benefits budget-conscious travelers. Consider Dubai if you prioritize cultural experiences, or Luxembourg for better value.

What's a reasonable monthly budget for Dubai vs Luxembourg?

In Dubai, a single person needs approximately AED 7,334 per month (including rent), while a family of four requires about AED 18,169. In Luxembourg, these figures are €2,200 for singles and €4,901 for families. These estimates include housing, food, transportation, and basic entertainment.

The cost of living comparison between Dubai and Luxembourg in 2025 shows moderate differences across various expense categories. Whether you're planning a relocation for work, considering retirement options, or simply curious about living costs, understanding these differences is crucial for making informed financial decisions.

Need to calculate salary equivalence?

Find out how much you need to earn in Luxembourg to maintain your lifestyle from Dubai

Calculate Salary Equivalence

Last updated: 2025-01-15 • Data sourced from multiple providers