DUBAI: The Municipality of Dubai is tightening rules for shared accommodation through the emirate’s new Shared Housing Law (Law No. 4 of 2026). The policy aims to fix long‑standing issues in bed‑space rentals, overcrowded villas, and co‑living units by introducing standardized pricing, mandatory permits, and a digital housing registry.
The law takes effect end of August, with a one‑year grace period for operators to comply.
A major change is the creation of a separate rental index specifically for shared housing. The Dubai Land Department (DLD) will build and regularly update this index, ensuring that rental prices reflect unit size, facilities, and occupancy limits. This move is expected to bring greater transparency and prevent arbitrary pricing across Dubai’s fast‑growing co‑living market.
Standard Contracts + Digital Register
To streamline compliance, DLD will also introduce standard tenancy contracts for shared housing. These contracts will be linked to a digital register that records property details, permits, resident information, and occupancy limits. Dubai Municipality will oversee the unified digital platform, while DLD manages the electronic registry.
Permits Now Mandatory
Under the new law, no operator—individual or company—may lease shared housing without a permit. Only property owners or authorised establishments can legally run shared accommodation. Tenants are not allowed to sublet, and units must meet strict standards on space per resident, safety, and shared facilities.
Fines Up to Dh500,000 (Dh1 Million for Repeat Offences)
Violations carry steep penalties:
- Up to Dh 500,000 for first offences
- Up to Dh 1 million for repeat violations These fines target illegal partitions, overcrowding, and unlicensed operators—issues that have long plagued Dubai’s rental landscape.
Grace Period Until 2027
Operators have one year from the law’s effective date to regularise permits, contracts, and unit standards. This gives landlords and co‑living companies time to adjust operations before full enforcement begins.
