Dubai Issues New Law to Regulate Shared Housing, Fines Up to Dh1 Million for Violations

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New legislation sets strict rules on permits, leasing, and occupancy limits to tackle overcrowding and informal housing across Dubai.

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Dubai is tightening the rules on shared housing.

Mohammed bin Rashid Al Maktoum has issued Law No. (4) of 2026, introducing new regulations for shared housing in Dubai aimed at preventing overcrowding and improving living conditions.

The law lays out clear guidelines for permits, leasing rules, and safety standards, while also defining the responsibilities of landlords, tenants, and property managers.

Permit Now Required for Shared Housing

Under the new law, no property can be used for shared housing without an official permit.

Permits will be issued and renewed by Dubai Municipality in coordination with Dubai Land Department and other authorities.

Each unit must meet technical and safety requirements, including building standards, maximum occupancy limits, minimum space per resident, and proper shared facilities.

Permits are generally valid for one year, though owners may apply for a two-year permit. Renewal requests must be submitted at least 30 days before expiration.

Strict Rules on Leasing and Subleasing

The law also clarifies who is allowed to lease shared housing units.

Only the property owner or a licensed establishment can lease the unit. Tenants are not allowed to sublease any part of the property.

Units can be leased directly by owners, managed by licensed operators on behalf of owners, or leased to licensed establishments that then rent the space to residents.

Heavy Fines for Violations

Authorities are also introducing steep penalties for rule-breakers.

Violations could result in fines ranging from Dh500 to Dh500,000, depending on the offense. Repeat violations within one year could double the penalty up to a maximum of Dh1 million.

Additional measures may include suspending business activity for up to six months, cancelling permits, revoking licences, disconnecting utilities, or evicting non-compliant units.

Disputes related to the law will be handled by the Dubai Rental Disputes Center.

One Year to Comply

Existing shared housing units will have one year to comply with the new regulations once the law takes effect.

Authorities may grant a one-time extension if needed.

The law will officially come into force 180 days after publication in the Official Gazette.

Officials say the goal is to create a balanced framework that protects tenants and landlords while maintaining safe and orderly residential communities across Dubai.