Dubai: If you live in a shared accommodation in Dubai – whether it an apartment or a villa – the new shared housing law in Dubai is going to introduce some key changes that you should be aware of.Dubai Law no. 4 of 2026 on the ‘Regulation of Occupancy and Management of Shared Housing in the Emirate of Dubai’ was issued earlier this year, setting out conditions for allocating housing units for shared occupancy.Emirates 24|7 spoke with legal experts in the emirate to find out what changes are being introduced and how the new law affects both tenants and landlords.1. What is the biggest change introduced in the law?While earlier subletting an apartment was permitted in the emirate of Dubai, it was allowed as long as you had a written consent from the landlord.The new law introduces several changes to shared housing agreements in the emirate, according to Reda Hegazy, Partner at Alsuwaidi & Company LLC Advocates & Legal Consultants.“Law No. 4 of 2026 establishes a framework governing how shared housing units are leased, managed, and occupied. The regulation aims to ensure safer living conditions, prevent overcrowding, and formalise a type of accommodation widely used by residents seeking more affordable housing options,” he said.Reda Hegazy, Partner at Alsuwaidi & Company LLC Advocates & Legal Consultants2. What is ‘shared housing’?According to Hegazy, the law defines shared housing as multiple individuals or families living within a single property unit, where facilities such as kitchens, bathrooms, or common areas are used jointly.“This covers a broad range of living arrangements familiar to many of Dubai’s residents, from flat sharing among professionals to families co-occupying a villa. Collective labour accommodation, however, remains governed by separate legislation and falls outside the scope of this law,” he said.3. Is shared housing still permitted?The new law, in fact, does permit shared housing in Dubai and establishes a regulatory framework to formalise the practice.“The regulation aims to ensure safer living conditions, prevent overcrowding, and formalise a type of accommodation widely used by residents seeking more affordable housing options. The law seeks to enhance safety standards, safeguard the rights of owners and residents, and ensure orderly use of residential properties across the Emirate,” Hegazy said.4. Why obtaining a permit is importantAny shared housing arrangement can only be made after a permit is obtained.“Such permit must be issued and renewed in accordance with the conditions and procedures determined by a decision of the Director General of Dubai Municipality, in coordination with the Dubai Land Department and the competent authorities,” Hegazy said.This applies to homeowners as well as real estate agencies and property management establishments. The requirement for a permit ensures that the housing unit complies with the technical requirements and standards set out in the new law.5. What do the shared housing requirements cover?The law also sets out standards and requirements that need to be met for a housing unit to be used for shared housing, including compliance with:Approved planning and building regulations.Public health and safety requirements.The maximum number of permitted occupants per unit.The minimum space allocated per occupant.The shared services and facilities that must be available within the unit.6. How long is a permit valid for?The permit is valid for one year, renewable for similar periods. It may be extended to two years upon request. Renewal must be requested at least 30 days before expiry.7. Can tenants sublet an apartment they are leasing?No, the new law only allows for subletting by property owners or licensed companies permitted to lease shared accommodation units.“Residents themselves are prohibited from subleasing their allocated space to third parties, a measure aimed at curbing unregulated subletting and overcrowding,” Hegazy said.8. Who can sublet an apartment?Ahmed Elnaggar Founder and Managing Partner at Elnaggar & Partners, commented on how Article 11 of the new law sets out three permissible leasing arrangements:The owner may conclude lease contracts directly with occupants.Alternatively, the owner may appoint a licensed establishment to manage and lease the unit on their behalf under a management contract.The owner may also lease the entire unit to a licensed establishment, which then subleases individual spaces to occupants.“These are the only three routes recognised under the law,” Elnaggar said.He added, however, that the starting point for any shared housing agreement once the law comes into effect, will always be applying for a permit with Dubai Municipality.“Article 8 makes clear that no unit may be used for shared housing without one, and the permit must be obtained before any lease is concluded with occupants. Applications are submitted through the unified digital platform operated by Dubai Municipality,” he said.Ahmed Elnaggar Founder and Managing Partner at Elnaggar & Partners9. Who is eligible to live in shared housing?Articles 14 and 15 recognise six categories of occupants, according to Elnaggar:FamiliesIndividual womenIndividual menFemale studentsMale studentsEmployees of government entities and private companies10. Which types of building can have shared housing?It also provides for six categories of properties where shared housing may be permitted:Residential apartmentsStandalone housesResidential complexesMixed-use buildingsAdjoining housesMulti-storey buildings“The applicable occupant category must correspond to the type of unit,” Elnaggar said.11. What are the obligations of the person or company subletting a unit?The homeowner or establishment that puts up a unit for shared housing is referred to as the lessor. Article 25 of the new law imposes certain obligations that a lessor must fulfil to ensure the unit is suitable for shared housing.These include:Compliance with the occupancy limits set out in the permit.Displaying a sign on the building facade in both Arabic and English showing the permit holder's details and the housing category.Registering all lease and management contracts in the Shared Housing Register, which will be maintained by the Dubai Land Department.Maintaining the unit in a safe and habitable condition.Carrying out periodic maintenance and renewing compliance certificates.Providing occupants with a multilingual guide covering their rights and obligations, emergency contact numbers, and the permitted uses of the property.“Owners are also required to monitor occupant compliance and to promptly notify the competent entity of any violations observed. Article 25(14) makes clear that failure to report a violation is itself an offence,” Elnaggar said.12. What are the obligations of the people living in shared housing?The law also sets out obligations that tenants in the shared housing should meet in Article 26, including:Using the allocated space solely for residential purposes.Maintaining the property with reasonable care.Refraining from conducting any business activities within the unit.Not sub-letting their allocated space.According to Elnaggar, any subleasing agreement that may be put in place by an occupant of the shared housing in breach of the prohibition on subletting shall be considered null and void.13. What if the owner of my shared housing sells the unit?As per the new law, the tenants who are living in a shared housing unit after obtaining a permit can continue living in the apartment or villa, even if the unit is sold or transferred to a new owner.14. What if I want to terminate my lease?Miruna Lupascu, Legal Consultant at Elnaggar & Partners, also commented on how the new law protects tenants in a shared housing agreement, giving them the right to unilaterally terminate the lease at any time during its term, as long as they give thirty days' prior written notice. The tenants, however, will need to pay a month’s rent as a deduction for terminating the lease.“Upon termination, Article 20(c) entitles the occupant to a refund of any prepaid rent, subject only to a capped statutory deduction of one month's rent. If the landlord fails to issue the refund within thirty days of the request, Article 20(d) allows the occupant to petition the Execution Judge at the Dubai Rental Disputes Centre directly to recover it. Article 36 confirms that all disputes between occupants and lessors fall within the exclusive jurisdiction of the Dubai Rental Disputes Centre,” he said.15. Can my landlord ask me to vacate the shared housing?The law also provides circumstances in which the landlord may request the tenant to vacate the shared housing unit before the lease expires:If the tenant fails to pay the rent or any part of it within 30 days of being notified, unless both parties agree otherwise.If the tenant uses the unit for unlawful purposes or in a manner that violates public order or public morals or allows others to do so.If the permit is revoked or the permitted land use is changed by the relevant authority.If the building is at risk of collapse, as confirmed by a technical report from a competent authority or an accredited engineering office.If the competent authority orders the demolition, rebuilding, or maintenance of the unit or building due to technical defects.If the owner wishes to reclaim the unit for personal use or for the use of a first-degree relative. In this case, the tenant must be given at least 30 days' notice prior to the termination date, or as per the notice period in the lease — whichever is longer.If urban planning or development requirements necessitate the demolition of the unit or building as determined by the competent authority, the tenant may be asked to vacate.Any other cases as determined by a decision issued by the Director-General of the municipality.16. What are the penalties for not complying with the new law?According to Lupascu, violating provisions of the law can lead to a fine of at least AED 500 up to a maximum fine of AED 500,000.The amount of the fine shall be doubled in the event of a repeat offence of the same violation within one year from the date of the previous violation, provided that the maximum fine does not exceed AED 1 million.Lupascu said that in addition to financial penalties, the authorities may impose a range of further enforcement measures, including:Suspension of activity for a period not exceeding six months.Revocation of the permit.Coordination with the Licensing Authority to revoke the establishment’s commercial licence.Suspension of public services to the violating property unit until the causes of the violation are removed.Refusal to accept any transactions related to the property unit.Refusal to issue any building permits for the property unit until the violation has been rectified.Eviction of the property unit that violates the permit conditions, based on a decision issued by the Execution Judge at the Rental Disputes Centre.17. When will the law come into effect?According to Lupascu, the law was issued on February 27, 2026 and published in the Official Gazette on March 12, 2026, Issue no. 764.“Pursuant to Article 40, it is expected to come into force 180 days later, on September 8, 2026,” she said.She also added that the implementing regulations of the law are still to follow, which will clarify details of how the law will be implemented, including the permit fees, the area maps designating where shared housing may be conducted, the detailed occupancy and space standards and the shared housing rental index, which will be established by the Dubai Land Department.For those tenants and landlords already in a shared housing arrangement, there is a transitional period on one year also mentioned in the law."All owners and establishments already operating shared housing units have one year from September 8, 2026 to regularise their status and bring their arrangements into compliance. The Director-General of Dubai Municipality may extend this period once if necessary. Anyone currently operating without a permit is not immediately in violation, but the window to comply is narrow and the consequences of failing to do so by the deadline are significant,” Lupascu said.
