Dubai: In his capacity as the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, has issued Law No. (4) of 2026, which governs the management and occupancy of shared housing in Dubai.
According to Emirates News Agency, the provisions of the Law encompass private development zones, free zones, and owners authorized to allocate their real estate units for shared housing. It also applies to tenants residing in units earmarked for shared housing, and establishments licensed to lease and manage real estate units on behalf of owners, including those operating in special development and free zones. Units designated for collective labor accommodation are excluded from this regulation.
The Law aims to regulate shared housing in Dubai by safeguarding the rights of both owners and residents, ensuring safe living conditions, and preventing overcrowding. It seeks to address building and land use violations, promote fair rental practices, and support the stability of Dubai's real estate market. Dubai Municipality is tasked with overseeing shared housing, setting policies, and designating areas based on urban planning, population density, and infrastructure considerations.
The Dubai Land Department (DLD) manages the electronic shared housing registry and links it to Dubai Municipality's unified digital platform. DLD is responsible for determining the key data to be recorded in the registry and ensuring compliance with regulations. The department also standardizes lease and management contracts and updates a rent indicator for shared housing units.
Permits for shared housing units are mandatory and must comply with technical standards. These permits are valid for one year, with a two-year option available. Only owners or authorized establishments may lease shared housing units, and subleasing by tenants is prohibited. The Law also outlines the obligations of landlords and tenants, with fines for violations ranging from AED500 to AED500,000. Repeated violations could result in fines up to AED1 million.
The Dubai Rental Disputes Centre has exclusive jurisdiction over resolving disputes related to the Law. The Law mandates that all existing shared housing operations comply within one year, with possible extensions granted by Dubai Municipality. Contradictory provisions in other legislation are annulled, and the Law will be effective 180 days after its publication in the Official Gazette.