Experts say regulated shared housing can halve Dubai tenants’ rental costs

Dubai tenants could reduce their housing expenses by 25 to nearly 50 percent by opting for regulated shared accommodation instead of renting a studio or one-bedroom apartment, property industry executives have said. The savings come as Dubai Municipality rolls out rules under Law No. 4 of 2026, which designates more than 44 areas for shared housing across the emirate.

Savings and Cost Structure

Farooq Syed, chief executive of Springfield Properties, calculated that a studio renting for Dh45,000 a year works out at about Dh3,750 a month. By comparison, he said, shared accommodation at Dh2,000 a month would save a resident Dh21,000 annually, or nearly 47 percent. Syed noted that actual savings depend on location, the type of accommodation and the services included.

Rohit Bachani, co-founder and director of Merlin Real Estate, estimated that tenants can save 25 to 40 percent compared with renting a studio or one-bedroom alone. He cautioned, however, that legal shared housing will cost more than the informal market. “Tenants are now paying for compliance, space, safety and a registered contract,” Bachani said. “It isn’t free.”

Rakesh Mavath, co-founder of Takeem, put the viable monthly rent for a compliant room at roughly Dh2,000 to Dh3,000, against Dh3,500 to Dh5,000 for a studio or one-bedroom in the same areas. He stressed that a regulated bed “won’t be as cheap as an illegal one, and it shouldn’t be”, because operators now carry permits, meet space standards and provide required facilities.

Mavath added that the bigger saving is upfront. Renting an entire unit typically requires a deposit, agency fee, Ejari registration, a Dubai Electricity and Water Authority (Dewa) connection fee and rent paid in several cheques — costs that for a newcomer can amount to several months’ salary. Regulated shared housing, he said, usually involves monthly payments, bundled utilities and a contract that protects the tenant. “Cash flow, not just rent,” Mavath said.

Regulatory Framework and Categories

Dubai Municipality has identified more than 44 areas for shared housing under the new law. The regulations split shared housing into individual and family categories, and each residential unit must be allocated to only one category. The circular sets requirements for shared facilities and services based on the category and the number of occupants.

Demand for Larger Homes

Industry executives expect demand for larger homes to increase, though for different reasons. Bachani said two- and three-bedroom apartments and villas in approved zones become the most efficient way to house several people legally. Because each unit can now hold fewer people, more units are needed for the same population, which he said further supports rents. He expects professional co-living operators and investors to compete for such properties.

Mavath said the buyers will differ. Tenants can no longer sublet rooms or beds, so demand will come from owners and licensed operators, not groups of friends. “Units need bedrooms large enough for the per-person minimum, enough bathrooms and kitchen and laundry space that scales with occupancy, and many large units will not qualify without works. Demand will therefore be selective,” he said. Mavath cautioned landlords that leasing an entire block to one operator concentrates risk and advised careful due diligence.

Farooq Syed said the opportunity goes beyond size. Occupancy, safety and shared-facility requirements will make design and management more important and could encourage developers and owners to introduce more purpose-built shared housing.