Dubai Ruler Sheikh Mohammed Issues New Law to Regulate Shared Housing, Tighten Permits and Curb Overcrowding

Dubai’s Ruler issued a new law governing the management and occupancy of shared housing across the emirate. The legislation establishes clear rules for permits, leasing, and safety standards, aiming to safeguard residents and property owners while curbing overcrowding and informal housing.

Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced the regulation. It clarifies the rights of landlords and tenants, outlines leasing rules, and introduces fines for violations.

Law No. (4) of 2026 sets out comprehensive rules for shared housing. It introduces measures to limit overcrowding, reduce informal accommodation, and address breaches of building and land-use regulations. The law also promotes fair rental practices and aims to maintain Dubai’s real estate market as stable and attractive.

Under the legislation, no individual or entity may designate 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 bodies. Units must comply with all technical requirements, including building standards, occupancy limits, minimum space per resident, and necessary shared facilities.

Permits are generally valid for one year and may be renewed for the same duration. Owners may also apply for a two-year permit. Applications for renewal must be filed at least 30 days before the existing permit expires.

The law also defines who may lease shared housing units. Only the owner or a licensed establishment is permitted to lease the unit. Tenants or other parties are prohibited from subleasing any portion of it.

Leasing arrangements may be carried out directly by the owner, through an establishment managing the unit on the owner’s behalf, or by an establishment that leases the unit from the owner in order to sublease it to tenants.

All units must comply with technical and safety standards covering building structure, health, fire protection, sanitation, security, and electrical systems. The law also details the responsibilities of landlords and tenants, including regulations governing advertising and promotion of shared housing units.

Anyone breaching the law or related regulations may face fines ranging from Dh500 to Dh500,000. Repeat violations within one year may result in fines being doubled, up to a maximum of Dh1 million.

Additional legal measures

The Dubai Land Department may also impose further measures, including suspending the activity for up to six months, cancelling the permit, revoking the commercial licence, disconnecting public utilities until violations are rectified, or ordering the eviction of units that fail to comply with permit requirements.

All disputes arising under the law will be handled exclusively by the Dubai Rental Disputes Center, in accordance with its established rules and procedures.

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

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

Who the law applies to

The law applies to private development zones and free zones, as well as owners permitted to allocate their real estate units for shared housing and tenants residing in those units.

It also applies to licensed establishments that lease or manage units on behalf of owners or sublease units to tenants. Collective labour accommodation units are excluded.

Authorities said the legislation aims to create a balanced framework that protects the rights of both owners and tenants while maintaining the quality and safety of residential buildings.

Oversight, permits, standards for shared housing

Dubai Municipality will oversee the management of shared housing across the emirate. It will set policies and plans, determine rules for allocating units such as maximum occupancy levels, minimum space per resident, and shared facilities, and decide where shared housing may operate. Locations will be determined based on urban planning considerations, population density, infrastructure, and the social character of neighbourhoods. The municipality will also operate a unified digital platform for permits, records, and data access for relevant authorities.

The Dubai Land Department will manage the electronic shared housing registry, which is linked to Dubai Municipality’s platform. The department will determine which information must be recorded in the registry and update it whenever changes occur. It will also define the requirements for lease and management contracts, including landlord details, number of residents, unit information, and allocated space. Standard templates for these contracts are available on the DLD website.

The department will ensure that establishments comply with the regulations governing shared housing and will work closely with licensing authorities. It will also develop and regularly update a rent indicator for shared housing units based on their characteristics.

Objectives of the law:

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

Improve shared housing and ensure appropriate living environments for all segments of society.

Limit overcrowding in residential areas and neighbourhoods.

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

 

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.