Tenants in Dubai could pay roughly a quarter to nearly half less by choosing regulated shared housing over a studio or one-bedroom flat, according to property experts, who also expect stronger demand for larger apartments in approved areas.
Dubai Municipality has identified more than 44 areas for shared housing under Law No. 4 of 2026. Shared housing is split into individual and family categories, and each residential unit must be allocated to only one. The circular sets out requirements for shared facilities and services based on the category and number of occupants.
Farooq Syed, CEO of Springfield Properties, said a studio renting for Dh45,000 a year costs about Dh3,750 a month.
“At Dh2,000 a month for shared accommodation, a resident could save Dh21,000 a year, or nearly 47 per cent. Actual savings will depend on location, accommodation type and included services.”
Rohit Bachani, co-founder and director of Merlin Real Estate, estimated savings of 25 to 40 per cent against renting a studio or one-bedroom alone.
He warned that, compared with the informal market, legal shared housing will cost more.
“Tenants are now paying for compliance, space, safety and a registered contract,” he said. “It isn’t free.”
Rakesh Mavath, co-founder of Takeem, put the viable rent for a compliant room at roughly Dh2,000 to Dh3,000 a month, against Dh3,500 to Dh5,000 for a studio or one-bedroom in the same areas.
A regulated bed “won’t be as cheap as an illegal one, and it shouldn’t be”, he said, because operators now carry permits, space standards and facility requirements.
Mavath said the bigger saving is upfront.
A whole-unit lease usually means a deposit, agency fee, Ejari, Dubai Electricity and Water Authority (Dewa) connection and rent in several cheques, which for a newcomer can amount to several months’ salary. Regulated shared housing typically means monthly payments, bundled utilities and a contract that protects the tenant. “Cash flow, not just rent,” he said.
Demand for larger units
The real estate industry executives expect stronger demand for larger homes, 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 further supports rents. He expects professional co-living operators and investors to compete for them.
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.
He cautioned landlords that leasing a 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.
Source: Khaleej Times