Dubai Issues Law No. (4) of 2026 on Shared Housing: What Owners, Tenants and Operators Need to Know

His Highness 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 regulating the management and occupancy of shared housing in Dubai. The Law introduces a comprehensive regulatory framework aimed at safeguarding the rights of property owners and residents, curbing informal housing practices, and maintaining the integrity of Dubai’s real estate market.

Scope of Application

The Law applies across private development zones and free zones in Dubai. It covers owners authorised to allocate their real estate units for shared housing, tenants residing in such units, and establishments licensed to lease and manage shared housing units — whether acting as managing agents on behalf of owners or as master lessees subleasing units to tenants. Units designated for collective labour accommodation are expressly excluded from the Law’s provisions.

Regulatory Authorities

Two principal authorities are tasked with implementing the Law. Dubai Municipality serves as the primary oversight body, responsible for setting policies and strategic plans, establishing occupancy and space standards, designating areas where shared housing is permitted, and operating a unified digital platform for permit processing and record management. The Dubai Land Department (DLD) maintains the electronic shared housing registry, linking it to Dubai Municipality’s platform, and is responsible for specifying the data to be recorded, standardising lease and management contract templates, monitoring establishment compliance, and publishing and regularly updating a rent indicator for shared housing units.

Permit Requirements

No person or entity may allocate a unit for shared housing without first obtaining a permit. Permits are issued and renewed in accordance with rules set by the Director General of Dubai Municipality in coordination with the DLD and relevant authorities. Units must satisfy all applicable technical requirements, including building standards, maximum occupancy limits, minimum space per resident, and the availability of shared facilities. Permits are valid for one year and renewable for similar periods, with an option for owners to obtain a two-year permit upon request. Renewal applications must be submitted at least 30 days before the permit’s expiry.

Leasing and Subletting

Only the owner or an authorised establishment may lease a shared housing unit. Tenants and other parties are expressly prohibited from subleasing any portion of the unit. Leasing may be conducted directly by the owner, through a managing establishment acting on the owner’s behalf, or by an establishment that has leased the unit from the owner for the purpose of subleasing it to residents. All units must comply with applicable technical and safety standards, encompassing building, health, fire, sanitation, security, and electrical requirements.

Penalties and Enforcement

Violations of the Law or related decisions may attract fines ranging from AED 500 to AED 500,000. Where a violation is repeated within one year, the applicable fine will be doubled, up to a ceiling of AED 1 million. In addition to financial penalties, the DLD may impose a range of further measures, including suspension of activity for up to six months, cancellation of the permit, revocation of the commercial licence, disconnection of public utility services pending rectification, and eviction orders for units that fail to meet permit requirements.

Dispute Resolution

The Dubai Rental Disputes Center has been granted exclusive jurisdiction to hear and determine all disputes arising from rights and obligations under the Law and its related decisions.

Transitional Period and Commencement

Owners and establishments currently operating shared housing in Dubai — including those in private development zones and free zones — must bring their units and operations into compliance within one year of the Law coming into force. The Director General of Dubai Municipality is empowered to grant a single extension where necessary. The Law will take effect 180 days from the date of its publication in the Official Gazette.

Key Takeaways for Stakeholders

Property owners currently operating or considering shared housing arrangements should review their existing permits, lease structures, and unit specifications against the new requirements well before the Law’s commencement date. Establishments engaged in leasing and managing shared housing units should similarly assess their licensing and operational arrangements. Given the scope of the penalties and the mandatory compliance window, early engagement with the regulatory framework is strongly advisable.

Our firm will continue to monitor the implementing regulations and decisions issued under the Law. For further guidance on how Law No. (4) of 2026 may affect your property interests or business operations, please contact our Real Estate Practice team.