Sheikh Mohammed Issues New Law To Regulate Shared Housing In Dubai

Dubai Ruler on Wednesday issued a new law regulating the management and occupancy of shared housing in the emirate. The legislation sets clear rules for permits, leasing, and safety standards, aiming to protect residents and property owners while preventing overcrowding and informal housing.

Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced the new regulation. It clarifies the rights of landlords and tenants, sets leasing rules, and introduces fines for those who break them.

Law No. (4) of 2026 lays out clear rules for shared housing. It includes steps to prevent overcrowding, reduce informal housing, and handle violations of building and land-use rules. The law also encourages fair rental practices and helps keep Dubai's real estate market stable and attractive.

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Under the new law, no person or entity can allocate a unit for shared housing without a permit. Permits are issued and renewed according to rules set by the Director General of Dubai Municipality, in coordination with the Dubai Land Department and other relevant authorities. Units must meet all technical requirements, including building standards, maximum occupancy limits, space per resident, and necessary shared facilities.

Permits are usually valid for one year and can be renewed for the same period. Owners can also request a two-year permit. Renewal applications must be submitted at least 30 days before the current permit expires.

The law also specifies who can lease shared housing units. Only the owner or a licensed establishment can lease the unit. Tenants or other parties are not allowed to sublease any part of it.

Leasing can be done directly by the owner, through an establishment managing the unit on the owner's behalf, or by an establishment leasing the unit from the owner to sublease it to tenants.

All units must comply with technical and safety standards, covering building, health, fire, sanitation, security, and electrical requirements. The law also outlines landlords' and tenants' responsibilities, including rules for advertising and promoting shared housing units.

Anyone who violates the law or related regulations may face fines ranging from Dh500 to Dh500,000. Repeat violations within a year can double the fines, up to a maximum of Dh1 million.

The Dubai Land Department may also impose additional measures, including suspending the activity for up to six months, cancelling the permit, revoking the commercial licence, disconnecting public services until the violation is rectified, or ordering the eviction of units that fail to meet permit requirements.

All disputes related to the law will be handled exclusively by the Dubai Rental Disputes Center, following its established rules and procedures.

Owners of units and establishments operating shared housing before the law takes effect have one year to bring their units into compliance. A one-time extension may be granted by the Director General of Dubai Municipality if needed.

Any conflicting provisions in other legislation will be annulled. The law will officially come into effect 180 days after its publication in the Official Gazette.

The law covers private development zones and free zones, as well as owners who are allowed to allocate their real estate units for shared housing and tenants living in those units.

It also covers licensed establishments that lease or manage units on behalf of owners or sublease units to tenants. Collective labour accommodation units are not included.

Authorities said the law is intended to provide a balanced framework that protects the rights of both owners and tenants, while maintaining the quality and safety of residential buildings.

Dubai Municipality is responsible for managing shared housing across the emirate. It sets policies and plans, defines rules for allocating units such as maximum occupancy, space per resident, and shared facilities, and decides where shared housing is allowed. Locations are chosen based on urban planning, population density, infrastructure, and the social character of neighbourhoods. The Municipality also runs a unified digital platform for permits, records, and data access for relevant authorities.

The Dubai Land Department (DLD) manages the electronic shared housing registry, which is linked to Dubai Municipality's platform. DLD decides which information should be recorded in the registry and updates it when changes occur. It also defines what must be included in lease and management contracts, such as landlord details, number of residents, unit information, and allocated space. Standard templates for these contracts are available on the DLD website.

DLD ensures that establishments follow the rules for shared housing and works closely with licensing authorities. The department also creates and regularly updates a rent indicator for shared housing units based on their features.

Regulate the management and occupancy of shared housing units in Dubai.

Enhance shared housing and ensure suitable living environments for all segments of society.

Reduce overcrowding in residential areas and neighbourhoods.

Address violations related to construction and land and building use in accordance with applicable legislation in Dubai.

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