HH Sheikh Mohammed bin Rashid Al Maktoum has issued Law No. (4) of 2026 regulating the management and occupancy of shared housing across the emirate.

The law establishes a framework governing shared housing in Dubai, covering private development zones and free zones, as well as property owners authorised to allocate their real estate units for shared accommodation and tenants residing in those units. It also applies to establishments licensed to lease and manage units on behalf of owners or to lease units for the purpose of subleasing them to tenants.

Units designated for collective labour accommodation are excluded from the scope of the law.

The new legislation aims to regulate shared housing while protecting the rights of property owners and residents and ensuring safe and healthy living conditions. It also seeks to curb overcrowding and informal housing practices, address building and land-use violations, promote fair rental practices and support the stability and overall appearance of Dubai’s real estate market.

Under the law, Dubai Municipality will oversee the regulation of shared housing in the emirate. The municipality will develop policies and strategic plans, define the conditions for allocating units — including maximum occupancy limits, space per resident and required shared facilities — and designate the areas where shared housing is permitted.

These areas will be determined based on urban planning considerations, population density, infrastructure capacity and the social character of neighbourhoods. Dubai Municipality will also operate a unified digital platform to process permits, maintain records and allow relevant authorities access to shared housing data.

Meanwhile, Dubai Land Department will manage the electronic registry for shared housing units and integrate it with the municipality’s digital platform. The department will determine the data required for registration and ensure that records are updated whenever changes occur.

It will also define the information required in lease and management contracts, including landlord details, number of residents, unit specifications and allocated space. Standardised contract templates will be made available through the department’s official platforms.

The Dubai Land Department will also oversee compliance by licensed establishments involved in leasing and managing shared housing units and coordinate with relevant licensing authorities. In addition, the department will establish and periodically update a rental index for shared housing based on unit specifications.

The law prohibits any individual or entity from allocating a unit for shared housing without obtaining a permit. Permits will be issued and renewed according to regulations set by the Director General of Dubai Municipality in coordination with the Dubai Land Department and other relevant authorities.

All units designated for shared housing must meet technical and safety requirements, including building standards, occupancy limits, space per resident and the provision of shared facilities.

Permits will be valid for one year and may be renewed for similar periods

Property owners may also apply for a two-year permit, while renewal requests must be submitted at least 30 days before the permit’s expiry.

Under the law, only the property owner or an authorised establishment may lease a shared housing unit. Tenants or other parties are prohibited from subleasing any portion of the unit.

Leasing may take place directly through the owner, through an establishment managing the property on the owner’s behalf or through an establishment leasing the unit from the owner for the purpose of subleasing it to tenants.

All units must comply with health and safety standards covering building regulations, fire safety, sanitation, security and electrical requirements. The law also outlines the obligations of landlords and tenants, along with rules governing the promotion and advertising of shared housing units.

Violations of the law or related regulations may result in fines ranging from Dhs500 to Dhs500,000. Repeat violations within one year may lead to fines being doubled, up to a maximum of Dhs1m.

Authorities may also impose additional penalties, including suspension of business activities for up to six months, cancellation of permits, revocation of commercial licences, disconnection of public services until violations are rectified or eviction of occupants from units that fail to meet permit requirements.

Under the law, the Dubai Rental Disputes Center will have exclusive jurisdiction to resolve disputes related to the rights and obligations outlined in the legislation.

Owners of units currently used for shared housing, along with establishments operating in the sector — including those in private development zones and free zones — must bring their operations into compliance within one year from the law’s implementation. The Director General of Dubai Municipality may grant a one-time extension if necessary.

Any provisions in existing legislation that conflict with the new law will be annulled. The law will come into force 180 days after its publication in the Official Gazette.

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