Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No. (4) of 2026 to regulate the management and occupancy of shared housing across the emirate.
The legislation covers private development zones and free zones, and applies to owners permitted to allocate their properties for shared housing, tenants residing in such units, and establishments licensed to lease and manage units on behalf of owners or to sublease them. Units designated for collective labour accommodation are excluded from the Law’s scope.
The Law sets out a framework to protect the rights of owners and residents and to guarantee conditions that meet health and safety standards.
Sheikh Mohammed signs law regulating shared housing in Dubai: What owners and tenants need to know
It addresses overcrowding and informal housing arrangements, targets building and land use violations, and promotes fair rental practices. The legislation is also intended to support stability in Dubai’s real estate market and preserve the character of the emirate’s neighbourhoods.
Under the Law, Dubai Municipality is designated as the authority responsible for overseeing shared housing across the emirate. Its responsibilities include setting policies and plans, establishing conditions for the allocation of units – including maximum occupancy levels, minimum space per resident, and required shared facilities – and designating the areas in which shared housing is permitted.
Those designations will be made based on considerations of urban planning, population density, infrastructure capacity, and the social character of the neighbourhoods in question. Dubai Municipality will also manage a unified digital platform to process permit applications, maintain records, and provide relevant authorities with access to related data.
The Dubai Land Department (DLD) is responsible for managing an electronic shared housing registry, which will be linked to Dubai Municipality’s unified digital platform. The DLD will determine the data to be recorded in the registry and will update it as circumstances change.
The department will also specify the information required in lease and management contracts – including details of the landlord, the number of residents, unit particulars, and allocated space – with templates to be made available on the DLD website. The department will enforce compliance by establishments operating in the shared housing sector and will coordinate with licensing authorities on related matters. It will additionally establish and update a rent indicator for shared housing units based on their specifications.
The Law prohibits any person or entity from allocating a unit for shared housing without first obtaining a permit. Permits will be issued and renewed in accordance with rules set by the Director General of Dubai Municipality, in coordination with the DLD and other relevant authorities. Units must satisfy all technical requirements, covering building standards, maximum occupancy, space per resident, and the provision of shared facilities.
Permits are valid for one year and are renewable for equivalent periods. At the owner’s request, a two-year permit may be issued. Renewal applications must be submitted no fewer than 30 days before the expiry of the existing permit.
Under the Law, only the owner or an authorised establishment may lease a shared housing unit. Tenants and other parties are prohibited from subleasing any part of the unit. Leasing may be conducted directly by the owner, through an establishment managing the unit on the owner’s behalf, or by an establishment that has leased the unit from the owner for the purpose of subleasing it to tenants.
Units must comply with technical and safety standards covering building, health, fire, sanitation, security, and electrical requirements. The Law also sets out the obligations of landlords and tenants, and establishes rules governing the promotion and advertising of shared housing units.
Dubai shared housing law 2026: Fines of up to AED1 million for violations under new legislation
Any person or entity found to have violated the provisions of the Law or related decisions may be subject to fines ranging from AED 500 to AED 500,000. Where a violation is repeated within one year, the fine will be doubled, up to a ceiling of AED 1 million.
The DLD may also impose a range of additional measures, including suspending the relevant activity for a period of up to six months, cancelling the permit, revoking the commercial licence, disconnecting public services until the violation is remedied, or ordering the eviction of units that fail to meet permit requirements.
The Dubai Rental Disputes Centre has been granted sole jurisdiction to hear and resolve all disputes arising from the rights and obligations established under the Law and its related decisions. The Centre will consider such cases in accordance with its existing rules and procedures.
Owners of units already in use for shared housing and establishments already operating in Dubai – including those in private development zones and free zones – prior to the Law coming into force must bring their units and operations into compliance within one year. The Director General of Dubai Municipality may grant a single extension to this period where required.
Any provision in existing legislation that conflicts with the new Law will be annulled. The Law takes effect 180 days from the date of its publication in the Official Gazette.
