Dubai's shared housing rules could push costs up for low-income groups

Dubai's new regulations for shared housing could potentially increase costs for low-income residents seeking affordable accommodations. While the crackdown aims to improve living conditions by addressing overcrowding and illegal subletting, higher compliance costs for landlords may make it harder for affordable shared housing to remain accessible.

The Dubai Municipality's shared housing guide sets standards for building design, occupancy, health, safety, and shared facilities, giving landlords until September 1, 2027 to comply across 43 designated areas. Nasser AlShaibani, a structural control section manager, explained that buildings must be designated for either individual or family-shared units, not mixed.

During a transitional period, Dubai Municipality will monitor and inspect buildings, though unpermitted modifications remain prohibited. So far, only three of six shared-housing permit applications have been approved. The new regulations require minimum space requirements, including at least one square metre per person for kitchen space, five square metres per person for bedrooms, and one toilet for every four occupants.

Rentable rooms must accommodate at least one square metre per person, with bicycle parking for 10% of residents. However, affordability remains a challenge, as the new regulations introduce higher operating and development costs that may deter investors and property owners. Rayan Hanna, founder of affordable housing platform Next House, acknowledges the benefits of the regulations but emphasizes the need for a balance between safety and financial viability for investors.

He estimates operators may need to generate Dh2,000 to Dh3,000 per rentable room per month to make the model financially attractive. Despite the challenges, Hanna believes the regulations are a step in the right direction, as Dubai's population is expected to grow significantly in the coming decades, increasing demand for affordable housing.