In his capacity as Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum has issued Law No. (4) of 2026 regulating the management and occupancy of shared housing in the Emirate of Dubai. Published in the Official Gazette of the Government of Dubai on 27 February 2026, the Law takes effect 180 days after publication — in late August 2026. It moves partial renting and bed-space arrangements, long a grey area of the property market, into a clear legal framework built on prior permits, an electronic registry and digital oversight, backed by fines of up to AED 500,000 that may double to AED 1 million for repeat violations.

Scope: who does the Law apply to?

The Law applies to owners authorised to allocate their real estate units for shared housing, to tenants residing in units designated for shared housing, and to establishments licensed to lease and manage real estate units on behalf of owners — or to lease units from owners in order to sublease them to tenants. Its scope extends to private development zones and free zones in the Emirate, and it covers the lease and management contracts concluded between all of these parties. Units designated for collective labour accommodation are excluded, as they remain subject to a separate regime.

A mandatory permit before any unit is allocated

The Law prohibits any person or entity from allocating a real estate unit for shared housing without first obtaining a permit. Dubai Municipality holds general oversight of the activity: it sets the policies and strategic plans, establishes the allocation conditions — maximum occupancy, minimum space per resident and the shared facilities that must be provided — and designates the areas in which shared housing is permitted, based on urban planning considerations, population density, infrastructure and the social character of neighbourhoods. The Municipality also operates a unified digital platform to process permits, maintain records and give the relevant authorities access to the data.

Permits are issued for one year, renewable for similar periods, and a two-year permit may be issued at the owner’s request. Renewal applications must be submitted at least 30 days before the permit expires, and the unit must satisfy all technical requirements, including building standards, occupancy limits, space per resident and shared facilities.

The role of the Dubai Land Department: an electronic registry and a rent indicator

The Dubai Land Department (DLD) manages the electronic shared housing registry and links it to Dubai Municipality’s unified digital platform, determining the key data to be recorded and updating it as changes occur. DLD also specifies the information that lease and management contracts must contain — landlord details, number of residents, unit information and allocated space — with standardised templates available on its website. In addition, the department establishes and regularly updates a rent indicator dedicated to shared housing units based on their specifications, bringing greater pricing transparency to this segment of the market.

Who may lease a shared housing unit? Subleasing by tenants is prohibited

The Law reserves the leasing of shared housing units exclusively to the owner or an authorised establishment; tenants and other parties may not sublease any part of a unit. Leasing may take one of three forms:

• Directly by the owner to the tenants.
• Through a licensed establishment managing the unit on the owner’s behalf.
• Through a licensed establishment leasing the unit from the owner in order to sublease it to tenants.

All units must comply with technical and safety standards — building, health, fire, sanitation, security and electrical requirements — and the Law further sets out the obligations of landlords and tenants as well as the rules governing the promotion and advertising of shared housing units.

Fines, administrative measures and the jurisdiction of the Rental Disputes Center

Anyone who violates the Law or the decisions issued under it faces fines ranging from AED 500 to AED 500,000, doubled where the same violation is repeated within one year, up to a maximum of AED 1 million. The Dubai Land Department may also impose additional measures, including suspending the activity for up to six months, cancelling the permit, revoking the commercial licence, disconnecting public services from the violating unit until the violation is rectified, or ordering the eviction of units that fail to meet permit requirements. The Dubai Rental Disputes Center has exclusive jurisdiction to hear and resolve all disputes relating to the rights and obligations established by the Law, in accordance with its own rules and procedures.

The compliance window: what the Law means in practice

Owners of units already used for shared housing, and establishments operating in the activity before the Law takes effect — including in private development zones and free zones — must bring their units and operations into compliance within one year, and the Director General of Dubai Municipality may grant a one-time extension where required. In practice, owners and operators should act now: confirm that their units fall within the areas where shared housing is permitted, satisfy the technical requirements, redraft their contracts on the approved templates, and unwind existing tenant sublease arrangements, which the Law now prohibits. Tenants, for their part, gain clearer protection, with their rights documented in registered contracts and safeguarded by the Rental Disputes Center. Any provision in other legislation that conflicts with the Law is annulled.