Rental rates in Dubai are decreasing in most areas amid increased choice for tenants

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.

Dubai has introduced new regulations for shared accommodation, giving property owners and operators one year to bring their operations into compliance with the updated standards. According to a new circular issued by the Dubai Municipality, shared accommodation will be divided into two categories: individual and family accommodation.

Shared accommodation is only permitted in approved areas. Currently, the Dubai Municipality has designated over 44 such zones, including Al Suk Al Kabir, Al Ras, Al Warka 1, Al Barsha 1, Al Murakkabat, and Al Rigga; more zones will be announced later.

Properties located on major tourist and commercial streets, such as Bani Yas Road, Sheikh Zayed Road, Jumeirah Road, and Al Wasl Road, may be used exclusively for family accommodation, not for individual use.

To obtain a shared accommodation permit, owners and operators must meet a series of conditions. First, the owner must ensure that the building or villa is located in one of the 44 approved areas; otherwise, registration is impossible.

It is important that the entire building or villa is used for only one category of accommodation—either individual or family; mixing the two categories in one property is prohibited.

There are also area requirements: each person must have at least 5 square meters of sleeping space. In the case of family accommodation, each family must have a separate bedroom with its own bathroom.

Furthermore, kitchens must provide an area of at least 1 square meter per resident. Bathroom requirements depend on the configuration: if the toilet and shower are combined, there must be at least one bathroom for every four people; if they are separate, one toilet is required for every four people and one shower for every six people.

Parking spaces for bicycles must also be provided in a quantity of at least 10 percent of the total number of residents in the building.

After meeting all these conditions, owners must obtain a construction permit for shared accommodation. This requirement applies to both new and existing buildings or villas requiring modification. Applications are submitted through the Dubai Construction Platform with the assistance of an appointed engineering consultant.

These consulting offices will undergo training on electronic services related to issuing shared accommodation permits. The engineering consultant must provide all plans and information, including building, apartment, and room numbers, their areas, occupant categories, and occupancy rates. The consultant must also confirm the building's compliance with fire safety, sanitation, environmental, and security requirements.

Upon issuance of the completion certificate, the shared accommodation permit will be provided. This document contains all necessary information for the Dubai Land Department, allowing rental agreements to be drawn up for residents. The emirate previously announced the introduction of a special rental index for shared accommodation.

The permit is valid for one year and can be extended. Applicants can also request a two-year term. Owners and building operators must apply for renewal no later than 30 days before the expiration date. Applicants have until September 8, 2027, to legalize their status. This grace period does not cover violations of building codes or unauthorized changes in use. Violations may result in fines ranging from 500 to 500,000 dirhams.