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

Dubai's new shared housing regulations aim to improve living conditions, but they could increase costs for low-income residents. The Dubai Municipality has set standards for building design, occupancy, health and safety, shared facilities and approved locations, giving landlords until September 1, 2027 to comply across 43 areas.

The rules prohibit subdividing apartments and require buildings to be designated for either individual or family-shared housing. Nasser AlShaibani, a structural control section manager, explained that each building must be designated for either individuals or families and that unpermitted modifications are still considered illegal.

The municipality has received only six shared-housing permits so far, with three approved through the Build in Dubai platform. While the regulations intend to provide tenants with a one- or two-month contract, industry operators warn that higher compliance costs could hinder affordable accommodation. Rayan Hanna, founder of Next House, an affordable housing platform, acknowledged the benefits of the regulations but highlighted the challenges of increased operating and development costs.

The new standards require kitchens, sanitary facilities, and designated areas for dining, recreation, laundry, and clothes drying, with bedrooms at least five square meters per person. Landlords face penalties for breaches, up to Dh500,000 for a first offense. While the regulations improve housing safety, they also increase costs, making it difficult for many workers who earn less than Dh5,000 a month to afford affordable housing.