Dubai Municipality tells Gulf News when tenants must stop subletting apartments.
Dubai: Dubai’s new law regulating shared housing, which imposes fines of up to Dh1 million for repeat violations, will officially come into force later this month, Dubai Municipality has exclusively confirmed.
Law No. (4) of 2026, issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, establishes a comprehensive framework for the management, occupancy and leasing of shared housing across private development areas and free zones in the emirate.
It excludes residential units designated for collective labour accommodation.
Effective date confirmed
On March 11, 2026, the Government of Dubai Media Office (GDMO) announced the issuance of the law by His Highness Sheikh Mohammed bin Rashid Al Maktoum. At the time, it said the law would come into force 180 days after its publication in the Official Gazette.
Dubai Municipality, the authority responsible for overseeing shared housing in the emirate, has now confirmed to Gulf News exactly when that 180-day period ends.
“The law was published in the Official Gazette on February 27, 2026, and it shall come into effect 180 days from the date of publication. Accordingly, the effective date is August 26, 2026,” the civic body said.
The confirmation provides long-awaited clarity for landlords, tenants and property operators as they prepare for one of the most significant overhauls of Dubai’s shared accommodation sector.
Tenants barred from subletting
Among the law’s most significant changes is a ban on tenants subletting any part of a shared housing unit.
Under the new rules, only property owners or companies authorised by the owner to manage or lease the property will be permitted to rent out shared accommodation, effectively ending the common practice of tenants subletting rooms or bed spaces to others.
One-year grace period
The law allows shared housing units to be leased directly by the property owner, through a licensed management company, or by a company authorised to lease the property from the owner and sublease it to residents. However, tenants themselves will no longer be permitted to sublet any part of a shared housing unit.
Property owners and operators have one year from the law’s effective date to bring their shared housing units into compliance.
Asked how the grace period would be calculated, Dubai Municipality told “The compliance period will be calculated in accordance with the law, giving property owners and operators sufficient time to align with the new regulatory requirements.”
Based on the confirmed effective date of August 26, 2026, the compliance deadline falls on August 26, 2027.
Grace period serves as warning
Asked whether warnings would be issued before penalties are enforced, Dubai Municipality said the one-year compliance period is intended to serve that purpose.
“The law grants a full year’s grace period for compliance after it comes into effect, and this grace period serves as a warning and regulatory period before the application of penalties begins.”
When will inspections begin?
On when formal inspections will start, the municipality said it is continuing preparations ahead of the law’s implementation.
“Dubai Municipality continues to monitor the current situation and assess existing conditions to support the effective implementation of the new regulatory framework.”
The civic body added that enforcement activities “will be implemented in line with the official enforcement timeline of the law and after the relevant procedures are finalised.”
Fines of up to Dh1 million
Violations of the law carry fines ranging from Dh500 to Dh500,000, with penalties doubling to Dh1 million for repeat offences committed within one year of the initial violation.
Executive regulations to set fine structure
Dubai Municipality said the law allows fines of up to Dh1 million, with the exact penalties for individual violations to be set out in the executive regulations, which are yet to be issued.
“The law stipulates that fines can reach up to one million dirhams depending on the type of violation. Details of the violations and fines for each case will be specified in the executive regulations to be issued later,” the municipality said.
In addition to financial penalties, authorities may suspend activities for up to six months, cancel permits, revoke commercial licences, disconnect utility services, or order the eviction of occupants from non-compliant shared housing units.
New permit system ahead
Under the new law, no property may be designated or operated as shared housing without obtaining a permit issued by Dubai Municipality in coordination with the Dubai Land Department.
Asked how the permit system will be introduced, the municipality said:
“The procedures for issuing shared accommodation permits will be announced through Dubai Municipality’s approved systems and digital platforms, whether existing or updated, once the official processes are finalised.”
Permit requirements
Dubai Municipality said permit requirements will centre on occupancy limits, health and safety standards, and compliance with applicable building and planning regulations, with more detailed requirements to be outlined in the law’s executive regulations and implementation guidelines.
What else the law covers
Shared housing permits will be valid for one year and can be renewed. Property owners and operators may also apply for permits valid for up to two years, while renewal applications must be submitted at least 30 days before the permit expires.
The law also assigns key responsibilities to other government entities. The Dubai Land Department will establish an integrated electronic register for shared housing, introduce standardised tenancy contract templates and develop a rent index for the sector. Meanwhile, the Dubai Rental Disputes Centre will have jurisdiction over disputes involving property owners, tenants and shared housing management companies.
