Dubai Introduces Shared Housing Rental Index Under New Law

Email: online@newsofbahrain.com

Dubai: In order to control the expanding shared housing market in the emirate, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the United Arab Emirates, and Ruler of Dubai, issued Law No. 4 of 2026, which establishes a specific rental index for shared housing units. After being published in the Official Gazette on March 11, 2026, the law will take effect on August 26, 2026, 180 days later.

The Dubai Land Department (DLD) shall develop a new rental index that will set standard rents for shared housing based on location, property type, building condition, and unit characteristics. The act's objectives are to increase transparency, ensure fair rental rates, and protect the rights of both tenants and property owners.

The law also requires property owners and licensed operators to get permits before providing shared accommodations. All residents must be registered using the Ejari system, and occupancy limits, health and safety regulations, and housing categories will be strictly enforced to reduce overcrowding and improve living conditions.

Violations of the ordinance may result in fines ranging from AED 500 to AED 500,000, with repeat offenders facing penalties of up to AED 1 million, as well as the suspension of permits or eviction orders. The measures are part of Dubai's overall attempts to improve rental market regulation and promote long-term urban growth.

Photo: Representative Image