Why Your First Month in Dubai Costs More Than You Expect
Moving to Dubai for the first time? Expect to spend significantly more in your first month than your ongoing monthly expenses. First-time renters routinely underestimate upfront costs because the UAE rental system requires multiple large deposits and fees at lease signing — none of which are recoverable in the short term. Based on our experience helping thousands of expats relocate to Dubai, a first-time renter moving into a furnished 2-bedroom apartment should budget at least AED 25,000–40,000 in first-month costs before living expenses. For an unfurnished apartment requiring furnishing, that rises to AED 70,000–110,000+.
Here is every cost, explained with specific 2026 numbers so you can plan accurately.
Cost 1: Security Deposit
The security deposit is held by the landlord throughout your tenancy and is refundable at lease end (subject to no damages). UAE law sets maximum rates:
- Unfurnished property: Maximum 5% of annual rent
- Furnished property: Maximum 10% of annual rent
For a 2-bedroom apartment at AED 90,000/year unfurnished: security deposit = AED 4,500. Furnished at AED 120,000/year: AED 12,000. Some landlords accept the deposit spread across 2-3 post-dated cheques for longer-term leases — always negotiate, especially in a slower market.
Cost 2: Agency Fee
Dubai real estate agent commissions are paid by the tenant — typically 5% of annual rent as a one-time fee. For a 2-bed at AED 90,000/year, that is AED 4,500. Large agencies (Betterhomes, Haus & Haus, Allsopp & Allsopp) charge 5% consistently. Private landlord listings (DubaiZilla, Property Finder direct) can reduce or eliminate the agency fee, but require more independent due diligence — always verify against the Dubai REST database before paying anything.
Cost 3: Ejari Registration (AED 220)
All Dubai tenancy contracts must be registered via Ejari (RERA's tenancy registration system). The fee is a flat AED 220, paid by the tenant. Registration via the Dubai REST app takes 1-3 hours. Without a valid Ejari, DEWA cannot be connected in your name. Our Ejari registration guide covers the full process.
Cost 4: DEWA Security Deposit (AED 2,000–4,000)
The Dubai Electricity and Water Authority requires a refundable security deposit to open an account:
- Apartments: AED 2,000 (refundable on account closure)
- Villas: AED 4,000
DEWA connection is activated within 24-48 hours of application via the DEWA app. See our DEWA connection guide for the full process and required documents.
Cost 5: District Cooling (Chiller) Deposit (AED 0–2,500)
Buildings using district cooling (common in Marina, JBR, Downtown, JLT, Business Bay, The Greens) require a separate chiller account deposit in addition to DEWA:
- Emicool: AED 1,000–1,500
- Empower: AED 1,000–2,000
- Palm District Cooling: AED 1,500–2,500
Chiller-free buildings (JVC, Discovery Gardens, Al Barsha, Barsha Heights) eliminate this cost entirely. Read our chiller-free buildings guide for areas with the most chiller-free stock and how to verify before signing.
Cost 6: Move-In Permit Damage Deposit (AED 500–2,000)
Most Dubai buildings and gated communities require a refundable damage deposit when you move in, covering potential damage to common areas and elevators during the move. Typical amounts:
- Apartment buildings: AED 500–1,500
- Emaar, DAMAC, Nakheel communities: AED 1,000–2,000
This deposit is collected by building management and returned after move-in if no damage is found. Our NOC and move permit guide explains the full permit process.
Cost 7: Moving Company (AED 1,100–5,500)
Your moving company cost depends on home size and distance. benchmarks with a reputable Dubai mover:
| Home Size | Moving Cost (AED) | Packing Add-On |
|---|---|---|
| Studio apartment | 1,100–1,800 | 400–700 |
| 1-bed apartment | 1,500–2,500 | 600–1,000 |
| 2-bed apartment | 2,200–3,500 | 800–1,400 |
| 3-bed apartment | 3,000–5,000 | 1,200–2,000 |
| 3-4 bed villa | 4,500–7,500 | 1,500–2,500 |
See our full Dubai moving cost guide for a complete breakdown by home size and distance. Our apartment moving service and packing service cover all apartment types.
Cost 8: Furnishing an Unfurnished Apartment
If you are moving into an unfurnished apartment — which offers better value per sq ft in most Dubai areas — budget for furnishing. Approximate costs for a 2-bedroom unfurnished apartment starting from scratch:
| Category | Budget (AED) | Mid-Range (AED) |
|---|---|---|
| Bedroom furniture (2 rooms) | 5,000–8,000 | 12,000–20,000 |
| Living/dining furniture | 4,000–7,000 | 10,000–18,000 |
| Kitchen appliances | 2,000–4,000 | 5,000–10,000 |
| Soft furnishings (curtains, rugs, cushions) | 1,500–3,000 | 4,000–8,000 |
| White goods (washer, fridge if not included) | 2,500–4,000 | 6,000–12,000 |
| Total | 15,000–26,000 | 37,000–68,000 |
IKEA (Festival City and Jebel Ali) is the most popular option for budget furnishing. Danube Home (multiple Dubai locations) offers good mid-range options. West Elm, Pottery Barn (Dubai Mall) and Natuzzi cater to higher budgets.
Total First-Month Cost Calculator
Combining all the above for different apartment types (unfurnished, standard community, no chiller):
| Cost Item | Studio (AED 40K rent) | 1-Bed (AED 65K rent) | 2-Bed (AED 90K rent) |
|---|---|---|---|
| Security deposit (5%) | 2,000 | 3,250 | 4,500 |
| Agency fee (5%) | 2,000 | 3,250 | 4,500 |
| Ejari | 220 | 220 | 220 |
| DEWA deposit | 2,000 | 2,000 | 2,000 |
| Move-in permit deposit | 750 | 1,000 | 1,000 |
| Moving company | 1,200 | 1,800 | 2,800 |
| Furnishing (budget) | 8,000 | 12,000 | 18,000 |
| Total (unfurnished) | 16,170 | 23,520 | 33,020 |
Add AED 1,000–2,000 for a chiller deposit if your building uses district cooling. Add internet setup (AED 300-500 installation fee). First month's living expenses (groceries, transport, etc.) are additional.
Money-Saving Tips for First-Time Dubai Movers
- Choose a chiller-free building: Save AED 1,000-2,500 in deposit and AED 10,000-15,000/year in ongoing costs
- Negotiate the deposit payment: Ask to spread the security deposit over 2-3 post-dated cheques rather than paying all at once
- Buy secondhand furniture: Facebook Marketplace Dubai, Dubizzle, and IKEA's as-is section have good-quality secondhand pieces at 30-60% off retail
- Time your move off-peak: Movers are cheaper on weekday mornings (Sunday-Tuesday). Avoid the September-October rush when school starts and expats flood back from summer — prices can be 20-30% higher
- Declutter before you move: Every item you don't ship saves you packing material, moving crew time, and cubic footage
Read our guide to saving money on your UAE move for more tips. Get a free, no-obligation estimate from SAMA Movers today.
Frequently Asked Questions
How much money do I need to move to Dubai for the first time?
First-time movers to Dubai should budget AED 20,000–35,000 for upfront costs on a furnished apartment (security deposit, agency fee, Ejari, DEWA, move-in permit, moving company). For an unfurnished apartment that needs furnishing, total first-month costs are AED 35,000–80,000+ depending on apartment size and furnishing budget. These costs are in addition to first month's rent and living expenses.
Is the DEWA deposit refundable when I move out of Dubai?
Yes — the DEWA security deposit (AED 2,000 for apartments, AED 4,000 for villas) is fully refundable when you close your DEWA account. Submit a disconnection request via the DEWA app or website with your move-out date. After your final bill is settled, DEWA refunds the deposit by bank transfer within 7-10 business days. Your account number and Emirates ID are required for the refund process.
What is the agency fee in Dubai and can I avoid it?
The Dubai agency fee is typically 5% of annual rent, paid one-time by the tenant to the real estate agent. On a AED 80,000/year apartment, that is AED 4,000. You can reduce or avoid this fee by finding properties directly through private landlords on platforms like DubizMe, Facebook Marketplace Dubai, or direct WhatsApp groups. Always verify any property against the Dubai REST database before transferring any money.
What hidden costs do most people miss when moving to Dubai?
The most commonly missed costs are: district cooling (chiller) deposit (AED 1,000–2,500 in addition to DEWA), the move-in permit damage deposit (AED 500–2,000), and internet setup fees (AED 300–500 installation). First-timers also underestimate furnishing costs for unfurnished apartments — a modest 2-bedroom setup costs AED 15,000–26,000 at budget retailers and AED 37,000–68,000 at mid-range. Planning for all these upfront avoids financial stress in the first month.
