Dubai Municipality Allows Shared Housing in 44 Areas with Fines Up to One Million Dirhams

Dubai Municipality issued a circular to implement Law No. 4 of 2026 concerning the regulation of occupancy and management of shared housing in the emirate. It designated more than 44 areas where this activity is permitted, including Al Souk Al Kabir, Al Ras, Al Warqa 1, Al Barsha 1, Al Muraqqabat, and Al Rigga, with additional areas to be added upon approval.

According to the circular, the landlord's agreement alone is not sufficient to operate the property for shared housing; a license must be obtained prior to use. It may only be leased to the owner, a licensed entity, or through an authorized operator who manages and leases it on behalf of the owner under a management contract. The circular prohibits tenants from subleasing rooms or beds.

The framework specifies a minimum area of five square meters per person in bedrooms and one full bathroom for every four people. It also mandates dedicating each unit to a single category of residents, preventing families from being housed alongside individuals in the same building. Major tourist and commercial thoroughfares, such as Sheikh Zayed Road, Jumeira, Al Wasl, and Baniyas, are excluded from single shared housing and restricted to families.

Fines range from AED 500 to AED 500,000, and may be doubled in the event of repeated violations within a year, up to a maximum of one million dirhams. Additional penalties include activity suspension for up to six months, license revocation, and utility disconnection. The law grants existing operators one year from its effective date to regularize their status.

What Do These Terms Mean?

Shared Housing: A system in which more than one person or family shares a unit or building in exchange for rent, subject to regulations defining permitted categories and areas.

Shared Housing License: Official approval from the municipality prior to operating the property for this activity; the owner's consent alone is not sufficient for the tenancy to be compliant.

Single Category: A requirement to allocate each unit or building to a single category of residents, such as families, female students, or workers, without mixing them in the same place.