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Shared accommodation in Dubai: what Law No. 4 of 2026 changes for owners and sublets

· Oleg Svyatenko, RERA broker

Shared accommodation in Dubai is not being banned, says Pavel Ivashchenko, who manages buildings in the city. Law No. 4 of 2026 keeps it legal for owners and properly licensed companies, but every shared unit now needs a Dubai Municipality permit, a fixed number of registered residents and roughly 5 square metres per person.

Is shared accommodation banned in Dubai?

No. Pavel puts it plainly: nobody is going to shut sharing down, but it will be regulated far more carefully and within the law. What disappears is the informal version with no legal basis.

Under the new rules there always has to be a defined number of people in an apartment and a legal basis for the arrangement. Either the owner runs it himself, or a company with the proper permit does. Everyone living in the unit has to be registered.

In other words, the market is being made stricter rather than closed. Oleg Svyatenko, who hosts the interview, sums it up the same way: the new licensing does not remove sharing as such, it moves it into the open.

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What is Law No. 4 of 2026?

It is the Dubai law that regulates the management and occupancy of shared housing, issued by Sheikh Mohammed bin Rashid in 2026 and in force from 26 August 2026. Pavel calls it one big law that covers all shared property in every building in Dubai without exception.

Its central point is a single authority. Dubai Municipality issues the permits for the activity and sets how many people may live in each property, how much space each resident must have and which shared facilities the unit has to provide.

Operators who were already running shared units were given one year from the date the law took effect to bring them into line, according to published coverage of the law.

Were there rules on sharing before the new law?

Yes, and that is the part people tend to miss. Pavel says the same restrictions existed before, they were simply spread across different authorities. Civil Defence had its norms and approvals for partitions, and Dubai Municipality always had rules on the number of occupants.

The building code already set a standard back in 2021 or even earlier: one person per 5 square metres of living space. RERA was involved too. What the new law does is gather all of this into one framework, so that nobody can speculate on the market unfairly.

For an owner, that means the ceiling on occupancy is not new. What is new is that the same ceiling now comes with a permit, registration of residents and one regulator that checks it.

Can an owner still run a shared apartment or building?

Yes. If you own the unit or the building, Pavel says, you can basically do all the same as before. The only change is that under the new law you need a permit from Dubai Municipality.

The owner still has to respect the permitted number of residents for the floor area, and every resident has to be registered. A building that was already run within the civil defence and municipality norms should find that the permit formalises what it was doing.

This is where the law tilts the market toward owners. The person holding the title deed keeps the right to share, while the people who only rented the flat lose the easy version of it.

What happens to tenants who sublet by the bed space?

That model is the one the law is aimed at. Renting a flat on an ordinary lease and subletting it by the bed space, or adding illegal partitions, is what Pavel says people will no longer be able to do so easily.

A non-owner who wants to operate shared housing, as he understands the law, has to open a company. Not a holiday home company, but a different licence that allows this activity, plus the Dubai Municipality permit on top.

The entrepreneurs who used to rent and sublet simply to earn the difference are the ones squeezed out. They will have to go legal: respect the number of residents per square metre, register everyone and hold a permit, or stop.

How is sharing different from a long let or a holiday home?

A Dubai landlord is choosing between three businesses. A twelve-month let is a regulated tenancy, registered with Ejari, with rent increases at renewal limited by the RERA rental index. The tenant needs that registration for utilities, visas and any dispute.

A nightly let is a licensed hospitality operation. It needs a holiday-home permit from Dubai's tourism department, held by the owner or by a licensed operator, and brings guest registration and tourism fees with it.

Shared accommodation is now the third licensed regime, with its own regulator. The licences are not interchangeable: Pavel stresses that a holiday home licence does not cover sharing, which needs its own company activity and its own permit.

What should an investor in Dubai rentals do now?

Check where your income actually comes from. If a unit earns its yield because several unrelated tenants live in a flat let as one home, that income now depends on a permit and on an occupancy ceiling of about 5 square metres per person.

Read your tenancy contract. It says who may occupy the unit and whether the tenant may sublet. Where a tenant runs bed spaces without your consent, the unit is exposed, so the clause is worth enforcing.

Recalculate on the legal model. A shared unit with registered residents and a permit earns less than an overfilled one, and it is the only version the new law leaves standing.

Frequently asked

Is shared accommodation legal in Dubai in 2026?

Yes, within Law No. 4 of 2026. An owner or a properly licensed company can operate a shared unit with a Dubai Municipality permit, a limited number of registered residents and the required space per person.

How much space does each resident need in a shared flat in Dubai?

The standard cited in the interview is one person per 5 square metres, a rule from the building code that predates the new law. Dubai Municipality now sets the occupancy limit for each property under the permit.

Can a tenant sublet beds in a Dubai apartment?

Not in the informal way that was common. A non-owner needs a company with an activity that allows shared housing, not a holiday home licence, plus a Dubai Municipality permit, registered residents and the occupancy limit respected.

Who issues permits for shared housing in Dubai?

Dubai Municipality. Under the new law it is the single authority for the activity, replacing a patchwork of civil defence, municipality and RERA rules that previously applied separately.

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