Dubai is set to introduce a dedicated rental index for shared housing units as part of a new law aimed at bringing greater transparency and consistency to the sector. The Dubai Land Department (DLD) will be responsible for developing and periodically updating the index based on the technical and service specifications of shared accommodation.
The new law, announced in March, is expected to take effect by the end of this month. However, details on whether rents will be calculated per unit, room, bed space or based on the area allocated to each resident have yet to be clarified.
The new framework will also introduce standardised rental and management contracts, along with an electronic register containing details of approved units, tenancy agreements and residents. No individual or company will be permitted to operate a property as shared housing without a permit.
Permits will generally be valid for one year and renewable, while property owners can also apply for two-year permits. Authorities will assess requirements covering construction, health, fire safety, hygiene, electrical safety, minimum space per resident, occupancy limits and access to essential common facilities before granting approval.
Existing shared housing operators will be given one year to comply with the new regulations. Violations can attract fines ranging from AED 500 to AED 500,000, while repeat offences within one year could result in doubled penalties of up to AED 1 million.
The new system is expected to strengthen oversight of Dubai’s shared accommodation market while providing clearer standards for property owners, operators and residents.
