Dubai Introduces New Shared Housing Law Requiring Permits and Setting Occupancy Rules

Dubai is set to implement a new regulatory framework for shared living accommodations with the activation of Law No. 4 of 2026 on the ‘Regulation of Occupancy and Management of Shared Housing in the Emirate of Dubai’, effective from September 8. This legislation aims to formalise shared housing arrangements, prevent overcrowding, enhance safety standards, and safeguard the rights of both property owners and residents.

Key Provisions

The law defines shared housing as multiple individuals or families living within a single property unit, jointly using facilities like kitchens and bathrooms. It applies to both apartments and villas but excludes collective labour accommodation, which falls under separate regulations. A primary objective is to regulate a common type of affordable housing while ensuring orderly use of residential properties and promoting safer living environments.

Permitting and Compliance

A mandatory permit will be required for any shared housing arrangement. This permit must be obtained and renewed through Dubai Municipality, in coordination with the Dubai Land Department (DLD) and other competent authorities. The requirement extends to homeowners, real estate agencies, and property management establishments. The permit, initially valid for one year and renewable, ensures the housing unit complies with technical requirements and standards, including:

• Approved planning and building regulations.
• Maximum number of permitted occupants per unit.
• Minimum space allocated per occupant.
• Availability of shared services and facilities within the unit.

Occupancy and Leasing

Under the new law, tenants are prohibited from subleasing their allocated space to third parties. Only property owners or licensed companies specifically permitted to lease shared accommodation units can do so. The law outlines three permissible leasing arrangements:

• Owners may lease directly to occupants.
• Owners may appoint a licensed establishment to manage and lease the unit on their behalf.
• Owners may lease the entire unit to a licensed establishment, which then subleases individual spaces to occupants.

The law also categorises eligible occupants, including employees of government and private companies, students, and families, ensuring a structured approach to shared living. Various property types, including villas and apartments, are approved for shared housing, provided they meet specific criteria.

Lessor Responsibilities

Property owners or establishments (lessors) providing units for shared housing must fulfil several obligations. These include adherence to occupancy limits, displaying a sign on the building facade with permit details in both Arabic and English, registering all lease and management contracts in the Shared Housing Register maintained by the DLD, maintaining the unit in a safe and habitable condition, and carrying out periodic maintenance. Non-compliance with the regulations can lead to significant penalties, including fines of up to AED 1 million.