Dubai Enforces New Shared Housing Law, Fines for Violations to Reach Dh1 Million

Dubai, September 02, 2026 (Pothwar.com — Mohammad Naseer Raja): The Dubai government has introduced a comprehensive new law aimed at curbing illegal and unregulated accommodation and bringing the shared-housing sector under a clear regulatory framework. Under the new regulations, individuals or companies providing shared accommodation without the required permits, or repeatedly violating the rules, could face fines of up to Dh1 million.

According to Gulf media reports, Law No. 4 of 2026, issued by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has officially come into force. The law applies across Dubai’s residential areas, special development zones and free zones, while formally established labour camps have been excluded from its scope.

Under the new regulations, no individual or company will be permitted to use a property for shared housing without obtaining the required property approval and permit. Only property owners and registered, licensed entities will be allowed to lease approved shared-housing units to residents.

The regulations also strictly prohibit tenants or residents from subletting any part of a property, including individual rooms, to other people.

The law allows apartments, villas, residential complexes, mixed-use buildings, townhouses and multi-storey buildings to obtain permits for shared housing, subject to the applicable requirements and approvals.

Different categories of residents, including families, women, men, students, government employees and workers employed by private companies, may be accommodated under approved procedures and arrangements.

Authorities have warned that serious action will be taken against operators who fail to comply with the new regulatory framework. Fines for violations will range from Dh500 to Dh500,000, while a repeat violation within one year could result in a doubled penalty of up to Dh1 million.

In addition to financial penalties, authorities may disconnect electricity and water services at illegal accommodation facilities and cancel their tenancy contracts. The permits and trade licences of operators found violating the regulations may also be suspended or cancelled for a period of up to six months.

The new framework further provides for the eviction of an illegally operated property following a judicial order. However, residents will not necessarily be removed immediately after a permit is cancelled. Authorities are required to allow them reasonable time to find alternative accommodation.

Property owners and companies already operating shared-housing facilities in Dubai have been given one year from August 26, 2026, to comply with the new regulations. The compliance period may be extended once more, subject to approval by the Director General of Dubai Municipality.

The new legislation is aimed at improving living standards, reducing overcrowding and illegal accommodation, and ensuring that shared housing in Dubai operates through a regulated and transparent system.