Picture for illustrative purposes only. DUBAI MUNICIPALITY

Tenants in Dubai will no longer be allowed to partition apartments or sublease shared housing units without official approval under a new law issued on Wednesday (March 11). In his capacity as the Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, issued legislation regulating shared housing in the emirate. The new law sets strict rules for owners, tenants and real estate establishments, with fines reaching up to Dh1 million for repeat violations. The new law aims to regulate shared housing in Dubai, safeguard the rights of property owners and residents, and ensure safe and healthy living conditions. It also seeks to prevent overcrowding, informal housing arrangements and building violations while supporting the stability of Dubai’s real estate market.

No partitioning or subleasing without permits

Under the law, no person or entity may allocate a unit for shared housing without obtaining a permit. Permits will be issued and renewed according to rules set by Dubai Municipality in coordination with Dubai Land Department and other relevant authorities. Units approved for shared housing must meet technical and safety standards, including building regulations, health and sanitation requirements, fire safety rules, electrical systems, and security measures. Authorities will also set maximum occupancy limits, space requirements per resident, and the number of shared facilities required. Permits will typically be valid for one year, though property owners may request permits valid for two years. Renewal applications must be submitted at least 30 days before the permit expires.

Only owners or authorised establishments can lease units

The law also tightens rules on leasing arrangements. Only the property owner or an authorised establishment may lease a shared housing unit. Tenants and other parties are not allowed to sublease any part of the unit. Leasing may take place in three ways:
  • Directly by the owner
  • Through a licensed establishment managing the unit on the owner’s behalf
  • Through an establishment leasing the unit from the owner and subleasing it to residents
The law also sets out rules governing the advertising and promotion of shared housing units, as well as the responsibilities of landlords and tenants.

Fines from Dh500 to Dh1 million

Violations of the law or related regulations may lead to fines ranging from Dh500 to Dh500,000. If the same violation is repeated within a year, the fine will be doubled, up to a maximum penalty of Dh1 million. Authorities may also impose additional measures. These include:
  • Suspending business activity for up to six months
  • Cancelling the shared housing permit
  • Revoking a commercial licence
  • Disconnecting public utilities until violations are corrected
  • Ordering eviction from non-compliant units

Designated housing zones

Under the law, Dubai Municipality will oversee shared housing across the emirate. The municipality will develop policies, set technical requirements for shared housing units, and designate areas where shared housing is allowed based on urban planning, population density, infrastructure and the social character of neighbourhoods. It will also operate a unified digital platform to process permits, maintain records and allow authorities to access shared housing data. Meanwhile, Dubai Land Department will manage the electronic registry for shared housing units, ensuring accurate records for landlords, residents and properties. The department will also define the information required in lease and management contracts, including: Landlord details; number of residents; unit specifications; allocated living space; standardised contract templates will be available on the department’s website.

Disputes handled by rental tribunal

Any disputes related to the new law will fall under the jurisdiction of the Dubai Rental Disputes Centre, which will hear and resolve cases based on its established procedures. Property owners and establishments currently operating shared housing units will be given one year to bring their properties into compliance once the law takes effect. The Director-General of Dubai Municipality may grant a one-time extension if needed. The law will take effect 180 days after its publication in the Official Gazette, and any conflicting provisions in other legislation will be annulled. ICA/CAM/Expat Media
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