Dubai issues new law to regulate shared housing with fines up to Dh1 million

Dubai: Dubai has introduced a new law to regulate shared housing and set clear rules for property owners, tenants, and companies managing such units.

Mohammed bin Rashid Al Maktoum issued Law No. (4) of 2026 in his capacity as Ruler of Dubai. The law governs how shared housing is managed and occupied across the emirate.

The legislation applies to private development zones and free zones. It also covers property owners who allocate units for shared housing and tenants living in those units.

Companies licensed to lease and manage real estate on behalf of owners are also covered. This includes firms that rent units from owners and sublease them to residents.

Housing used for collective labour accommodation is not included under the law.

Aim of the law

The regulation sets out rules for shared housing to:

• Protect the rights of property owners and residents

• Ensure safe and healthy living conditions

• Prevent overcrowding and informal housing arrangements

• Address building and land-use violations

• Promote fair rental practices

• Support stability in Dubai’s real estate market

Dubai Municipality will oversee shared housing across the emirate. The municipality will:

• Set policies and strategic plans for shared housing

• Determine maximum occupancy levels

• Define minimum space requirements per resident

• Specify required shared facilities in housing units

• Designate areas where shared housing is allowed

These designated areas will be determined based on urban planning factors such as population density, infrastructure capacity, and the social character of neighbourhoods.

Dubai Municipality will also operate a unified digital platform to process permits, store records, and allow authorities to access related data.

Registry, rental data

Dubai Land Department will maintain an electronic registry for shared housing units and link it to the municipality’s digital system.

The department will:

• Define the data recorded in the registry

• Update records when changes occur

• Set the required details for lease and management contracts

Contracts must include information such as landlord details, the number of residents, unit specifications, and space allocated per resident. Standard contract templates will be available on the department’s website.

The authority will also create and update a rent indicator for shared housing based on unit specifications.

Permit requirements

Under the law, no person or company may designate a property as shared housing without a permit.

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

Units must meet technical standards covering:

• Maximum occupancy limits

• Minimum space per resident

• Required shared facilities

• Building and structural standards

Permits will remain valid for one year and can be renewed for similar periods. Owners may also request a two-year permit.

Renewal applications must be submitted at least 30 days before the permit expires.

Leasing rules

Only property owners or authorised companies may lease shared housing units. Tenants are not allowed to sublease any part of the unit.

Units can be leased in three ways:

• Directly by the property owner

• Through a company managing the unit for the owner

• Through a company leasing the unit from the owner and subleasing it to residents

All properties must comply with safety and technical standards covering health, fire safety, sanitation, security, and electrical systems.

Penalties for violations

Violations of the law can result in fines ranging from Dh500 to Dh500,000. Repeat violations within one year can lead to doubled fines, up to Dh1 million.

The Dubai Land Department may also impose additional measures, including:

• Suspending activity for up to six months

• Cancelling permits

• Revoking commercial licences

• Disconnecting public services until violations are fixed

• Ordering eviction from units that fail to meet permit rules

Dispute resolution

Dubai Rental Disputes Center will handle all disputes related to the law. The centre will resolve cases involving the rights and obligations of owners, tenants, and management companies according to its established procedures.

Property owners and companies operating shared housing before the law takes effect must bring their units and operations into compliance within one year.

The Director General of Dubai Municipality may grant a one-time extension if needed. The law will come into force 180 days after its publication in the Official Gazette.