The New Shared Housing Law in Dubai: A New Era for Co-Living in Real Estate Properties

Dubai's real estate market has proved itself as one of the prominent markets in the region in addition to its ability to adapt to evolving market demands. In particular, demand for affordable, flexible, and community-oriented living continues to grow in Dubai. Accordingly, shared housing has evolved from a niche accommodation model into a fundamental component of Dubai's residential landscape. However, rapid market growth of shared housing has exposed it to legal and regulatory gaps, raising important questions around licensing, safety, occupancy standards, and accountability.

In light of the above, the Government of Dubai has introduced the new Shared Housing Law No. 4 of 2026 (“Shared Housing Law” or “Law”) which answered those questions. This Law demonstrated a strategic shift toward formalizing the co-living sector, protecting residents, enhancing investor confidence, and reinforcing Dubai's position as a global leader in forward-thinking real estate regulation.

The Shared Housing Law permits the use of various types of real estate units for shared housing, including apartments, detached villas, residential compounds, mixed-use buildings, and townhouses.

What are the objectives of the Shared Housing Law?

This Law, which will come into effect by the end of August 2026, establishes a comprehensive regulatory framework for the management and occupancy of shared housing units in Dubai. It aims to protect the rights of landlords and occupants(lessees), set each resident’s obligations and restrictions, ensure fair leasing practice, eliminate overcrowding and unregulated shared housing and provide suitable accommodation that complies with the Emirate's safety standards.

What are the key provisions of the Shared Housing Law?

Shared Housing Law introduced various new regulations for the sector of urban co-living, which includes mainly the following:

1- Shared Housing License

No individual or entity may use a real estate unit for shared housing purposes without first obtaining the required license. The license must be issued and renewed in accordance with the procedures prescribed by the General Manager of Dubai Municipality, in coordination with the relevant authorities. To obtain or renew the license, the unit must comply with the Law's technical and regulatory requirements, including applicable planning and building regulations, public health and safety standards, occupancy limits, minimum space requirements per occupant, and the provision of the required shared facilities and services. It is worth mentioning that the license is provided for a term of one year and may be renewed for successive one-year terms. Alternatively, upon request, the license may be issued or renewed for a period of up to two years.

2- Right to lease a licensed shared housing

Property owners of the licensed accommodation for shared housing, are only entitled to lease this accommodation. Occupants and any other third parties are prohibited from subleasing such units. Accordingly, shared housing units may only be leased through one of the following arrangements: directly by the owner to the occupants, managed by a licensed establishment on the owner's behalf, or leased by the owner to a licensed real estate management entity for the purpose of subleasing the units in accordance with the Shared Housing Law.

3- Occupants’ Lease Terms and Conditions

Every shared housing lease contract made with the Occupant, shall specify its term and rental amount, with the lease remaining in force until the expiry of its agreed duration unless terminated in accordance with the Shared Housing Law. The lease may be renewed by mutual agreement between the parties. Unless otherwise agreed, rent must be paid monthly in advance and is deemed to include electricity and water charges, unless the parties may agree otherwise.

4- Owners’ Obligations

According to the Law, owners shall comply with various obligations such as compliance with the terms of the issued license (including occupancy limits), execute and register written lease agreements, notify the relevant authorities of any changes to the ownership, operator, or occupant information, and ensure that lease and management agreements comply with the permit requirements. They are further required to deliver and maintain the premises in a safe and habitable condition, carry out all necessary maintenance, provide a multilingual guide outlining occupants' rights, obligations, emergency contact details, and permitted uses of the property.

5- Occupants’ Obligations

In brief, Occupants must comply with all applicable environmental and safety requirements, maintain the unit and their allocated space with reasonable care, and refrain from carrying out any alterations, repairs, or maintenance works without authorization. They may use the allocated space solely for residential purposes, are prohibited from permitting third parties to occupy or use it, conducting any commercial or business activities within the unit, or subleasing their allocated space.

6-Penalties and Fines

The Shared Housing Law establishes a solid enforcement regime to ensure compliance with its provisions. Administrative fines for violations range from AED 500 to AED 500,000 and may be doubled in the event of a repeated violation within one year, up to a maximum of AED 1 million. In addition to financial penalties, the competent authorities may impose a range of administrative measures, including the suspension of the shared housing activity for up to six months and cancellation of the relevant permit.

To sum up, Dubai's new Shared Housing Law marks a significant milestone in the regulation of one of the Emirate's fastest-growing residential sectors. By introducing a comprehensive licensing framework, clearly defining the rights and obligations of landlords, operators, and occupants, the Law provides greater legal certainty, enhances regulatory oversight, and promotes a safer, more transparent, and well-managed shared housing sector in Dubai.

If you would like to explore the new Shared Housing Law in greater detail, assess its implications for your real estate portfolio or leasing operations, or understand how its requirements can be implemented in practice, our team at Rasma Legal would be pleased to assist you. We also provide comprehensive legal advice on all aspects of real estate law, including property acquisitions and disposals, lease matters, development projects, regulatory compliance, and real estate dispute resolution.