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 to regulate the management and occupancy of shared housing in Dubai.
The new law applies across Dubai’s private development zones and free zones and sets clear rules for property owners, authorised operators, and tenants involved in shared housing arrangements.
What the law aims to do
The legislation is designed to organise shared housing in the emirate and address issues such as overcrowding and informal accommodation. The law aims to:
- Protect the rights of property owners and residents
- Ensure safe and healthy living conditions
- Prevent overcrowding and illegal housing practices
- Address building and land-use violations
- Promote fair rental practices
- Support the stability and appearance of Dubai’s real estate market
Permit required for shared housing
Under the law, no individual or entity may allocate a property unit for shared housing without obtaining an official permit.
Permits will be issued and renewed according to rules set by Dubai Municipality, in coordination with Dubai Land Department and other authorities.
Properties must meet specific technical and safety requirements, including:
- Maximum occupancy limits
- Minimum space per resident
- Adequate shared facilities
- Compliance with building, health, fire, sanitation, security, and electrical standards
Permit validity and renewal
- Permits are valid for one year and may be renewed for similar periods.
- At the owner’s request, a two-year permit may be issued.
- Renewal applications must be submitted at least 30 days before expiry.
Leasing rules
The law states that only the property owner or an authorised establishment can lease a shared housing unit.
Tenants or other parties are not allowed to sublease any part of the unit, ensuring better oversight and compliance with regulations.
Heavy fines for violations
Violating the law can result in fines ranging from Dh500 to Dh500,000.
If the same violation is repeated within one year, the penalty will be doubled, up to a maximum of AED1 million.
Authorities may also impose additional measures, including:
- Suspension of activity for up to six months
- Cancellation of the permit
- Revocation of the commercial licence
- Disconnection of public utilities
- Eviction orders for non-compliant units
Oversight and implementation
Dubai Municipality will set detailed conditions for shared housing, including maximum occupancy levels, required space per resident, and necessary facilities. The authority will also determine which areas in Dubai are permitted for shared housing, based on urban planning, population density, infrastructure capacity, and neighbourhood characteristics.
The law applies to companies licensed to manage or lease properties on behalf of owners, including those operating in special development zones and free zones. However, collective labour accommodation is excluded from its scope.
When the law takes effect
The law will come into force 180 days after its publication in the Official Gazette, and any conflicting provisions in other legislation will be annulled.
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