Hidden Costs of Relocating to Abu Dhabi: What Relocation Companies Wish You Knew

Relocating to Abu Dhabi might seem like a dream come true — breathtaking skylines, tax-free earnings, the most luxurious amenities on earth, and a blend of luxury and culture. Still, though you are busy dreaming about sunsets across the Corniche or brunches at Saadiyat Island, there is a less-glamorous aspect that everyone is not talking about, the hidden costs of relocation.

The majority of people think that they need to budget a new house, visa, and flight tickets. The reality is that the financial surprises begin after you have landed. Experience with relocation companies in Abu Dhabi has frequently cautioned customers that these additional costs may quickly accumulate and make what would otherwise become an easy process a stressful one. It is possible to save money and time knowing these hidden costs and be at peace at the beginning and avoid them.

Housing Deposits and Agency Fees

To rent an apartment in Abu Dhabi, you normally need to pay a large security deposit (usually 5% of the annual rent) as well as agency commissions (commonly 2 to 5 per cent). Other landlords even demand several post-dated cheques to the full year. According to reliable relocation companies, newcomers should consider the following costs as their moving budget and agree on the payment terms before signing a lease.

Also, we need to offer your tenancy to the Abu Dhabi Municipality (using the system Tawtheeq), and this requires some administrative costs, which may be unexpected to the first-time tenants.

Utilities, Internet, and Setup Charges

After you have found a place to stay, you will be required to have your electricity, water, and internet connections set up. In the case of utilities, Abu Dhabi Distribution Company (ADDC) typically needs a refundable deposit. In the meantime, installation of broadband and TV services usually involves an installation fee or activation fee.

A lot of relocation companies recommend allocating a minimum of AED 1,000-1,500 of these initial setup costs. These costs may appear insignificant, but they may mount very fast once added to the costs of the moving day and the need to furnish an apartment.

Furnishing and Appliance Purchases

Unless your rental is fully furnished, you will incur high expenses on furniture, curtains, kitchenware and basic appliances. The rental market in Abu Dhabi has a large amount of semi-furnished units, i.e. only built-in wardrobes or simple fittings.

Professional relocation companies usually refer clients to a local supplier or a temporary furniture renting company to save initial expenditure. It can be a clever idea to rent furniture that you can use temporarily until you can afford to invest in the long-term.

School Fees and Registration Charges

Education to families is among the largest relocation expenses — and the most underestimated. Before admission is assured, they also impose registration and assessment fees on international schools in Abu Dhabi on top of the annual school fees.

The leading relocation companies underline the importance of applying to schools early and whether your employer will cover these expenses in his relocation package. Other schools also take the first term fees upfront and that can be a big financial burden at such a young age.

Transportation and Vehicle Registration

Abu Dhabi has better public transportation, which is used by the majority of people, but they use personal vehicles. When purchasing or leasing a car, one has to pay fees on registration, insurance and possibly loan processing fees. Conversion and testing fees can also be incurred in transferring a driving licence in one country to another.

The authoritative relocation agencies can assist newcomers in the process of registering the vehicle with the Abu Dhabi Police and assist in comparing the leasing of cars to reduce any unnecessary expenses.

Visa, Health Insurance, and Legal Documentation

Although you may be sponsored by your employer for the visa, it always comes with some form of expenses, which may include medical examinations, purchase of Emirates ID, or application of dependent visa. These charges may increase dramatically to self-sponsor residents or entrepreneurs based on the type and length of visa.

Many relocation companies in Abu Dhabi include visa assistance in their service packages to simplify these procedures. They also serve to remind clients that they should not disregard mandatory health insurance which is necessary to all residents and must be bought prior to a visa.

Temporary Accommodation and Storage Fees

Unless your new house is ready when you arrive, you might be forced to put in temporary lodging or even hotels, for a few days or weeks. On the same note, any delay in the delivery or clearance of your goods may lead to storage charges of your property.

The relocation companies would usually advise the inclusion of a buffer budget in the event of such contingencies. Another option that can be used is to choose a service provider that provides both moving and storage services to avoid third-party mark-ups and coordination hassles.

Conclusion

Moving to Abu Dhabi is a great step and it will make it successful with preparation. By engaging professional relocation companies, one can be sure that not a single dime can be lost in the cracks - be it housing deposits and customs hold-ups, school admissions and unnoticed legal expenses.

Planning ahead of the apparent expenses will not only save you a lot of money but will also provide you with an easier time adapting to your new reality in the UAE capital. And, at that, it is not only about moving boxes to relocate, but creating stability at the very beginning.