New co-living rules in Dubai may lower rent for families
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Khaleej Times
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New co-living rules in Dubai may lower rent for families

For many residents of Dubai, the news about the legalization of co-living has been a source of great relief and anticipation. On Wednesday, the Dubai Municipality announced details of its February law that permits shared accommodation in the emirate. A detailed list of locations where this will be allowed was published on Thursday, including the areas of Karama, Barsha 1, and Al Rikka.

Mohammed Ashraf, a fitness trainer, reacted to this news with great enthusiasm. Last year, during increased scrutiny of co-living, he sent his wife and three-year-old son back to India. He explained that they lived in a villa with neighbors in Kusais, but after stricter checks, they had to move out. Since finding suitable accommodation on such short notice was difficult, they decided it was better for her to return home.

He noted that the family planned to return after Ramadan this year, but a regional conflict postponed their plans. Now that co-living is legalized and new rules have been announced, he considers it the best news of the year, expressing relief that it will hopefully make more affordable housing options available.

The law grants property owners and operators one year of grace period to bring their status into compliance, with adherence to the requirements due by September 8, 2027.

Maria, an expat from the Philippines, experienced a difficult time in January when she lost almost 4000 dirhams to an agent who promised her a room for co-living in an apartment in Deira. She reported that the agent asked her to pay the full monthly rent in advance, even though the room was supposed to be shared with other women. Three days after moving in, the landlord demanded she vacate the premises because co-living was not permitted, and he could face problems.

Maria spent days trying to get her money back through the agent, who disconnected his phone. She expressed satisfaction with the introduction of new rules in Dubai, noting that there are now no ambiguities and everything is protected by law, and also expressed hope for the successful implementation of these norms, which will benefit everyone.

Indian expat Sheenaz Hussain was forced to move out of her co-living arrangement less than a week earlier this year. She welcomed the change, believing it would significantly help professionals. She recounted that she and her friend had to leave the co-living space in just five days when the landlord stated that only families were allowed to live there. Sheenaz noted that this period was very stressful, but now sudden evictions are impossible thanks to clear contracts that specify which buildings are designated for individuals and which are for families, which she believes is a big step forward.

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Dubai residents allowed to get rent refund upon early termination of co-living agreements
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www.khaleejtimes.com

Dubai residents allowed to get rent refund upon early termination of co-living agreements

A new co-living law in Dubai allows residents to terminate their lease before the contract expires and demand a refund of prepaid rent.

According to Law No. 4 of 2026, the tenant has the right to terminate the lease agreement at any time, provided they notify the landlord in a timely manner. The minimum notice period is 30 days, but if the contract specifies a longer period, that one applies.

This provision is part of Dubai's new regulatory framework for co-living, although detailed requirements and licensing procedures are still being implemented. Previously, the Dubai Municipality informed Khaleej Times that the law's details would be announced, and a new service would be added to the Service Guide to simplify co-living licensing.

The law grants residents who terminate the contract according to the notification terms the right to request a refund of prepaid rent. However, the law gives the landlord the right to deduct an amount equivalent to one month's rent from the prepayment before returning the balance.

This rule is particularly relevant for those who have paid rent several months in advance. Under the new co-living system, rent is defaulted to be paid monthly unless otherwise agreed upon by the tenant and landlord. Furthermore, utility bills for electricity and water are included in the rent unless the parties agree otherwise.

The law provides a special mechanism for residents who do not receive the due funds. If the tenant does not recover the amount within 30 days after notifying the landlord of the refund request, they can file a petition with the Enforcement Court to recover the rent.

The Rental Disputes Center has exclusive jurisdiction over disagreements concerning the rights and obligations established by the co-living law. The method of providing notice may also be significant in case of subsequent disputes.

The law stipulates that termination notices can be delivered via a notary, sent to the email registered in the lease agreement, handed over in person, or delivered by any other legally approved method. Therefore, residents should ensure that the notice is submitted using one of the recognized methods, rather than relying on an informal verbal conversation.

Another important protection for co-living residents is contained in the law: a change of property owner does not automatically terminate the contract. If the co-living property transfers to a new owner, the existing lease agreement remains valid, and the resident has the right to continue residing there according to the contract signed with the previous owner.

Co-living agreements must specify the lease term and remain valid until its end unless terminated in accordance with the law. These provisions are part of a structure that formalizes co-living in Dubai through permits, registered lease agreements, living standards, and specific rights and obligations for owners, authorized institutions, and residents.

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