Dubai: Dubai has introduced a new law aimed at regulating shared housing across the emirate, establishing clear rules for property owners, tenants and companies managing shared accommodation. The regulation seeks to improve living conditions, prevent overcrowding and formalise a housing option widely used by residents seeking more affordable accommodation.

Law No. (4) of 2026 sets out a comprehensive framework governing how shared housing units are leased, managed and occupied. Authorities say the move will bring greater structure and oversight to the sector while ensuring safety and fairness for residents and property operators.

Who the law applies to?

• The new regulation covers several groups involved in shared housing, including:
• Property owners who designate their units for shared accommodation
• Tenants living in shared housing units
• Licensed companies or establishments that lease or manage properties on behalf of owners
• Firms that lease properties from owners and sublease them to residents

The law applies across all areas of Dubai, including private development zones and free zones. However, it does not apply to collective labour accommodation, which is housing specifically designated for workers.

Purpose of the regulation

Authorities introduced the law to organise the growing shared housing sector and address issues related to overcrowding and informal housing arrangements. The regulation aims to:

• Ensure safe and healthy living conditions for residents
• Prevent overcrowding in residential units
• Address building and land use violations
• Promote fair rental practices
• Support stability in Dubai’s real estate market

By introducing permits and clearer operational rules, the government aims to better regulate bed spaces and shared apartments across the city.

Authorities responsible for implementation

Two main authorities will oversee the implementation of the new law: Dubai Municipality and the Dubai Land Department (DLD).

Dubai Municipality will regulate shared housing across the emirate and will be responsible for:

• Developing policies and strategic plans for shared housing
• Setting maximum occupancy limits and minimum space per resident
• Defining requirements for shared facilities
• Identifying areas in Dubai where shared housing is permitted

These decisions will consider factors such as urban planning, infrastructure, population density and the character of neighbourhoods. The municipality will also operate a unified digital platform to issue permits and maintain records.

Dubai Land Department (DLD) will manage the electronic registry of shared housing units and integrate it with the municipality’s digital system. Its responsibilities include:

• Defining the data required in the shared housing registry
• Determining information needed in lease and management contracts
• Providing standard contract templates for landlords and operators
• Monitoring compliance by companies managing shared housing

Lease contracts must include details such as landlord information, the number of residents, unit specifications and the space allocated to occupants. The department will also introduce and update a rental indicator for shared housing based on unit specifications.

Permit requirements

Under the new law, no property can be used as shared housing without an official permit issued by Dubai Municipality.

To obtain a permit, the property must meet several requirements, including:

• Compliance with building and safety standards
• Adherence to maximum occupancy limits
• Adequate living space for each resident
• Availability of required shared facilities

Permits will generally be valid for one year, although property owners may apply for permits valid for two years. Renewal requests must be submitted at least 30 days before the permit expires.

Leasing rules

The law restricts who can lease shared housing units. Only the property owner or an authorised licensed establishment can legally rent out such accommodation. Tenants are not allowed to sublease or rent out part of the unit to others.

• Shared housing may be leased through three main arrangements:
• The property owner rents the unit directly to residents
• A licensed company manages and leases the unit on behalf of the owner
• A company leases the property from the owner and subleases it to tenants

All shared housing units must comply with health, safety and technical standards, including fire safety, sanitation, security and electrical system requirements. The law also introduces guidelines for advertising and promoting shared housing units.

Penalties for violations

The regulation imposes strict penalties for violations. Fines range from Dh500 to Dh500,000. If a violation is repeated within one year, the fine may be doubled, with a maximum penalty of Dh1 million.

• Authorities may also impose additional measures, including:
• Suspension of the activity for up to six months
• Cancellation of the permit
• Revocation of the company’s commercial licence
• Disconnection of public services until violations are resolved
• Eviction of residents from non-compliant units
• Disputes related to shared housing will be handled by the Dubai Rental Disputes Center, which will have exclusive jurisdiction over cases linked to the law.

Implementation timeline

The law will take effect 180 days after its publication in the Official Gazette. Property owners and companies currently operating shared housing units will have one year to comply with the new regulations.

The Director General of Dubai Municipality may grant a one-time extension if additional time is required for compliance. Once the law comes into force, any conflicting provisions in existing legislation will be отменed.