Can Dubai Villa Owners Legally Rent Out Each Floor To A Different Family?

(MENAFN- Khaleej Times) Question: I own a two‐storey villa in Dubai. Am I legally allowed to rent each floor to a different family? If so, what does the process look like?

Answer: Pursuant to the query raised, as the property is in Dubai, the provisions of the Dubai land law are applicable.

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In the emirate of Dubai, the relationship between a landlord and a tenant is regulated by a written lease contract which must contain, amongst other matters, a description of the leased real property, tenure of the lease, amount of rent. This is in accordance with the Article 4 (1) of the Law No. (33) of 2008 Amending Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai (the “Dubai Tenancy Law”),

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“The contractual relationship between a Landlord and a Tenant will be regulated by a Lease Contract which includes a description of the leased Real Property that leaves no room for uncertainty; the purpose of the lease; the term of the Lease Contract; the Rent and its payment method; and the name of the Real Property owner if the Landlord is not the owner.”

Further, Article 2 of Dubai Law No. (4) of 2026 Concerning the Regulation of Occupancy and Management of Shared Accommodation in the Emirate of Dubai (the“Dubai Law No. (4) of 2026”) defines

“Shared Accommodation as

Joint residence between a group of individuals or families, by allocating space to each of them in the real estate unit for the purpose of living, and includes sharing the use of the facilities and services shared in the real estate unit, such as the kitchen, dining room, bathroom and outdoor spaces

The same Article defines a

“Real Property Unit.

The building or any unit located in the building, house or other, which is designated for shared housing after fulfilling the conditions, controls and standards stipulated in this law and the decisions issued thereunder”

It also defines a Digital window as ,

A unified digital platform at the emirate level, dedicated to receiving, studying and deciding on applications for permits, as well as any other requirements related to the organization and management of shared housing in the emirate, and monitoring and inspecting it.

Further, Article 3 of the Dubai Law No. (4) of 2026 provides that the Law applies to all real property units located in Dubai, including those in special development zones and free zones, as well as owners authorised to designate their real property for shared accommodation.

“ Article (3)

a- The provisions of this law apply to:

1. All real estate units located in the emirate, including real estate units located in private development areas and free zones.

2. Owners who are authorized to allocate their real estate units for shared housing.

3. Residents of real estate units designated for shared housing.

4. Establishments licensed by the licensing authority to conduct business in the emirate, including establishments operating in special development zones and free zones.

5. Lease agreements and management contracts concluded between owners or establishments and residents.”

Furthermore, Dubai Municipality has the mandate for regulating shared accommodation and, empowers it to determine the areas in which the activity may be carried out and real property may be designated for shared accommodation , taking into account urban planning, population density, infrastructure, sewage systems and the social character of residential neighbourhoods. This is in accordance with Article 5 of the Dubai Law No. (4) of 2026

“The municipality is the competent authority for regulating shared housing in the emirate, and in order to do so, and in coordination with the competent authorities, in cases that require it, it shall carry out the following tasks and powers:

1. Preparing the general policy and strategic plans related to regulating shared housing in the emirate, and presenting them to the Executive Council for approval.

2. Determining the conditions for allocating a real estate unit for shared housing in accordance with the provisions of this law, including the maximum number of residents allowed in each real estate unit, the space allocated to each resident, and the shared services and facilities that must be available in the real estate unit.

3. Determining the standards and specifications of the areas where the activity is permitted and real estate units are allocated for shared housing, taking into account the urban planning

of the emirate, the population density in those areas, the infrastructure and sewage system therein, and the social nature of the residential neighborhoods.

4. Creating, operating, managing, supervising and updating the digital window, in a way that ensures the documentation, organization and management of shared housing in the emirate, linking it to the registry, and making it available for use by the competent authorities.

5. Any other tasks or powers necessary to achieve the objectives of this law shall be assigned to her by the Chairman of the Executive Council”

If an owner is proposing that Family A independently leases the entire ground floor and Family B independently leases the entire first floor, with each family having its own self-contained residential space and without the families sharing common facilities, the arrangement may not necessarily fall within the statutory definition of“shared accommodation” in Article 2 Law No. (4) of 2026.

However, if the arrangement involves allocating portions of the villa to different families while they share facilities or services or common areas, it is likely to fall within the definition of “shared accommodation”. In that case, the owner would need to comply with Dubai Law No. (4) of 2026 , including the applicable requirements for obtaining the requisite permit before designating the property for shared accommodation

Accordingly, the owner/landlord may consider approaching Dubai Municipality, as that is the competent authority responsible for regulating shared accommodation under Dubai Law No. (4) of 2026 , for further clarification as to whether the proposed arrangement of leasing the two floors of the villa to two different families would fall within the scope of the Law and whether any permit or prior approval would be required. Further, subject to confirmation that the proposed arrangement is permissible under the shared accommodation requirements, the owner/landlord would be required to ensure that any tenancy arrangements comply with the requirements of Dubai Tenancy Law , including the requirement for the lease contracts to clearly identify the leased premises and to be duly registered with RERA/Ejari.

Applicable provision:

· Law No. (33) of 2008 Amending Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai.

· Dubai Law No. (4) of 2026 Concerning the Regulation of Occupancy and Management of Shared Accommodation in the Emirate of Dubai

Disclaimer: The information provided above is intended for general guidance and does not constitute legal advice. It is recommended to seek formal legal counsel.

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