UAE price hikes: 3 things that may cost more for residents in 2025

Budget Planning for 2025: Key Cost Increases in Dubai

As 2025 approaches, it’s a good time to reassess your budget, especially if you’re living in or commuting to Dubai for work or business. Several upcoming price changes across key services are expected to impact daily expenses. These adjustments are part of Dubai’s ongoing efforts to enhance public services, including traffic management and infrastructure development.

1. Increased Parking Fees in Dubai

Starting March 2025, Dubai will introduce new parking fee rates:

Parking Areas
Timings
Fee per Hour
Premium Spaces
8am-10am / 4pm-8pm
Dh6
10am-4pm / 8pm-10pm
Dh4
Standard Spaces
8am-10pm
Dh4
All Areas
10pm-8am / All day on Sundays
Free
Event Zones
During major events
Dh25

Premium parking zones, identified by pink markings, will be introduced in high-demand areas, such as within 500 meters of Metro stations and major commercial hubs. Additionally, a Dh25 hourly fee will apply to event parking zones, particularly near locations like the Dubai World Trade Centre during major events starting in February 2025.

2. Salik Toll Hike with Dynamic Pricing

From January 2025, Salik will implement a dynamic toll pricing system to ease traffic congestion:

Salik Fee
Timings
Dh6
6am-10am / 4pm-8pm
Dh4
10am-4pm / 8pm-1am / all day on Sundays
Free
1am-6am

This is the first revision of Salik toll charges since their introduction in 2007. The changes are expected to ease traffic flow and generate between Dh60 million to Dh110 million annually for Salik, now a public joint stock company.

3. Sewerage Tariff Increase

Dubai Municipality will implement higher sewerage tariffs over the next three years, starting in 2025:

Year
Fee per Gallon
2025
1.5 fils
2026
2 fils
2027
2.8 fils

This is the first tariff increase in 10 years, aimed at supporting Dubai’s water conservation initiatives and future-ready infrastructure to accommodate the city’s growing population.

What to Expect in Rent and Salaries

Rent Outlook

While rents have surged in recent years, relief could be on the horizon. Over 100,000 new apartments and villas are expected to enter the market in 2025, potentially stabilizing rental rates.

Salary Increases

According to several studies, salary hikes are anticipated across various sectors:

  • Technology and Legal sectors are likely to see the highest increases due to talent demand.
  • Finance, Accounting, and HR professionals may also receive raises.
  • A broader survey by Mercer predicts an average 4% salary increase across industries, covering sectors such as energy, financial services, construction, real estate, and retail.

As Dubai continues its growth and development, these adjustments are set to shape the financial landscape in 2025, requiring residents and businesses to adapt their budgets accordingly.

Source : Kahleejtimes

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