Dubai's crackdown on overcrowded and illegally subletting apartments may improve living conditions for many residents. However, higher compliance costs for landlords could make affordable shared housing less accessible for workers who need it.
Dubai Municipality's shared housing guide sets standards for building design, occupancy, health and safety, shared facilities and approved locations. It gives landlords until September 1, 2027 to comply with the new requirements across 43 designated areas of the emirate.
The new regulations address unregulated residential practices, prevent rooms from being subdivided, and protect the privacy and rights of owners and occupants.
Nasser AlShaibani, structural control section manager at Dubai Municipality, told The National that the law required buildings to be designated as either individual or family-shared housing.
“Each building should be designated only for individuals or only for families; you cannot mix both permits within one building,” he said.
“Within this year, we are giving the building owners time to get the necessary approval from Dubai Municipality, Dubai Land Authority, Civil Defence and Rera.
“During this time, Dubai Municipality will keep on monitoring those buildings. We'll continue visiting and we'll do the inspections. This period does not exempt them from unpermitted building modification,” Mr AlShaibani said.
The municipality has received six applications for shared-housing permits so far. Three of them have been approved through the Build in Dubai platform.
Apartment blocks designated for shared accommodation are close to public transport and workplaces to reduce commuter traffic and encourage people to walk or cycle.
“Previously, the majority of the tenants living in shared accommodation did not have any contract or any legal backbone to their residential status,” said Mr AlShaibani.
“With this law, tenants can have a one- or two-month contract, which gives them the flexibility to change, to go and come back while having legal support.
“This will have a big impact on Dubai, as we'll see people moving to better housing and a better quality of life.”
A 2025 Dubai workforce report by Edenred UAE found that 60 per cent of workers earned less than Dh5,000 ($1,361) a month, creating strong demand for affordable housing.
While the new regulations aim to improve housing standards, industry operators caution that higher costs could make it harder to provide affordable accommodation for all.
Rayan Hanna, founder and chief executive of Next House, an affordable housing platform in Dubai specialising in short-term rentals, backed the regulations but said the sector still faces challenges.
“Although subdividing apartments into smaller rooms, commonly known as partitions, and operating shared rooms in residential units was prohibited, this type of accommodation has existed across Dubai for years,” Mr Hanna told The National.
“A clearer legal framework for shared housing creates opportunities for experienced operators, property owners and institutional investors.
“I also believe we will see stronger enforcement against illegally subdivided and overcrowded apartments in premium residential areas, with shared housing gradually moving towards designated locations.”
Next House caters to professionals visiting Dubai who are looking for short- to midterm rental agreements.
Under the new standards, shared accommodation must include kitchens, sanitary facilities and designated areas for dining, recreation, laundry and clothes drying. Bedrooms must be at least five square metres per person.
There must be at least one toilet for every four occupants and one shower for every six people. Kitchen space must provide at least one square metre per person, and buildings must provide bicycle parking for at least 10 per cent of residents.
Landlords found in breach of the regulations can be fined up to Dh500,000 ($136,147) for a first offence, with repeat offenders facing a maximum penalty of Dh1 million.
Mr Hanna, who has amended his business model to comply with the latest rules, said affordability remained the biggest challenge for many people moving to Dubai for work.
He said operators may need to generate around Dh2,000 to Dh3,000 per rentable room per month to make the model financially attractive for investors and property owners.
“Many people relying on bed spaces simply cannot afford more than Dh700–900 a month,” he said.
“The new regulations introduce minimum space requirements which are important improvements, but they also increase operating and development costs.
“This could improve housing for a small part of the market while still leaving many lower-income workers without affordable options.”
“The real challenge is finding the balance between making housing safe and compliant, and making it attractive for investors.”
Mr Hanna added, “I don't think these regulations alone will solve Dubai's affordable housing problem, but they're certainly a step in the right direction.”
Dubai is one of the world's fastest-growing cities, with its population of around 4.8 million forecast to increase to around six million by 2040.
The city's infrastructure is expanding alongside its population, with extensions to public transport networks and existing communities.