Dubai will introduce a dedicated rental index for shared housing units under a new law regulating the sector, with the Dubai Land Department (DLD) responsible for establishing and updating the index.
The index will consider the technical and service specifications of individual shared housing units, according to guidance published by LexisNexis Middle East on Dubai Law No. 4 of 2026, which comes into effect at the end of August.
The new benchmark will apply specifically to licensed shared housing properties, separate from Dubai’s existing rental index used for regulating rent increases during tenancy renewals.
The DLD will also prepare standard tenancy and management agreements for shared housing and maintain an electronic Shared Housing Register containing details of approved units, contracts and residents.
Under the law, properties cannot be used for shared housing without a permit. Permits will generally be valid for one year and will only be issued after authorities verify compliance with safety, health, construction and occupancy requirements.
Existing shared housing operators will be given one year to comply with the new regulations. Violations may result in fines ranging from Dh500 to Dh500,000, with repeat offences attracting higher penalties.