Dubai Issues New Law to Regulate Shared Housing Units

In his capacity as the Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, has issued Law No. (4) of 2026 to regulate the management and occupancy of shared housing units across Dubai.

The new law establishes a clear framework for shared housing in the emirate, aiming to protect the rights of both property owners and residents while ensuring safe, healthy and organised living conditions. Authorities say the regulation will help prevent overcrowding, control informal housing practices and maintain the stability of Dubai’s real estate market.

Scope of the law

The provisions of the law apply to private development zones and free zones across Dubai. It also covers property owners authorised to allocate their real estate units for shared housing and tenants living in such units.

The law also includes companies licensed to lease and manage properties on behalf of owners or those that lease units from owners and sublease them to residents. These provisions apply even to establishments operating in special development zones and free zones.

However, the law does not apply to collective labour accommodation units, which are governed under separate regulations.

Role of Dubai Municipality

Under the new law, Dubai Municipality will be responsible for supervising and regulating shared housing in the emirate.

The municipality will:

• Develop policies and strategic plans for shared housing

• Set conditions for allocating shared housing units

• Determine the maximum number of residents allowed in each unit

• Define the minimum space per resident

• Establish required shared facilities and services

Dubai Municipality will also identify areas where shared housing is allowed based on urban planning, population density, infrastructure and the social character of neighbourhoods.

Additionally, the authority will operate a unified digital platform to process permit applications, store housing data and allow government authorities to access related records.

Dubai Land Department responsibilities

The Dubai Land Department will manage the electronic registry for shared housing units, which will be linked to the municipality’s digital platform.

The department will determine the key information recorded in the registry and update it whenever changes occur. It will also define the details required in lease and management contracts, including:

• Landlord information

• Number of residents in the unit

• Property details

• Space allocated for each resident

Standardised contract templates will also be available on the department’s official website.

The Dubai Land Department will also monitor whether establishments comply with regulations related to the activity and coordinate with licensing authorities when necessary.

In addition, the department will create and regularly update a rent indicator for shared housing units, based on the property’s specifications and facilities.

Permit requirements for shared housing

The law clearly states that no individual or company can allocate a property for shared housing without obtaining an official permit.

Permits will be issued and renewed based on rules set by the Director General of Dubai Municipality in coordination with the Dubai Land Department and other authorities.

To receive approval, units must meet several technical and safety requirements, including:

• Building safety standards

• Maximum occupancy limits

• Minimum space per resident

• Availability of shared facilities

Each permit will be valid for one year, with the option to renew it for similar periods. Owners may also request a two-year permit.

Applications for renewal must be submitted at least 30 days before the permit expires.

Leasing and subleasing rules

According to the law, only the property owner or an authorised establishment can lease a shared housing unit.

Tenants or other parties are not allowed to sublease any part of the unit.

Leasing may take place through three methods:

1. Directly by the property owner

2. Through a licensed establishment managing the property on behalf of the owner

3. Through an establishment leasing the unit from the owner and subleasing it to tenants

All shared housing units must comply with safety and technical regulations covering building structure, health standards, fire safety, sanitation, security and electrical systems.

The law also outlines the responsibilities of both landlords and tenants and sets guidelines for the advertising and promotion of shared housing units.

Fines and penalties for violations

Individuals or companies that violate the provisions of the law or related regulations may face fines ranging from AED 500 to AED 500,000.

If the same violation occurs again within one year, the fine will be doubled, up to a maximum of AED 1 million.

Authorities may also impose additional penalties, including:

• Suspending business activities for up to six months

• Cancelling permits

• Revoking commercial licences

• Disconnecting public services until violations are corrected

• Ordering the eviction of residents from non-compliant units

Dispute resolution

The Dubai Rental Disputes Center will have exclusive authority to hear and resolve disputes related to rights and obligations defined in the law.

All disputes will be handled according to the centre’s established legal procedures.

Compliance period for existing units

Property owners and establishments already operating shared housing units in Dubai, including those in private development zones and free zones, will have one year to comply with the new law.

If necessary, the Director General of Dubai Municipality may grant a one-time extension.

Law implementation

Any legal provisions that conflict with this legislation will be cancelled. The new law will officially come into force 180 days after its publication in the Official Gazette.

The regulation is expected to strengthen Dubai’s housing system by ensuring better living standards, improving transparency in rental practices and maintaining the overall quality of residential areas across the emirate.