A new Dubai Municipality initiative to formalise shared housing could cut rental costs for some tenants by as much as 47 per cent, property experts say. Under Law No. 4 of 2026, the municipality has identified more than 44 areas where regulated shared-housing units will be permitted.
Farooq Syed, chief executive of Springfield Properties, said a bed in a licensed shared unit is likely to cost between Dh2,000 and Dh3,000 a month, compared with a studio apartment in the same area, which can run to Dh3,750 a month, or roughly Dh45,000 a year. That gap translates into potential annual savings of around Dh21,000, or nearly 47 per cent, for tenants who opt for regulated shared accommodation.
Rohit Bachani of Merlin Real Estate noted that tenants paying for a licensed bed space are effectively also paying for compliance, safety standards and a registered contract, services that "aren't free." Rakesh Mavath, co-founder of Takeem, added that a regulated bed "won't be as cheap as an illegal one, and it shouldn't be," given the added costs of legal compliance.
Analysts expect the rollout of regulated shared housing to simultaneously boost demand for two- and three-bedroom apartments and villas in approved zones, as some families choose independent units rather than shared accommodation. A further draw for shared housing is the removal of upfront costs such as security deposits, agency fees, Ejari registration and DEWA connection charges, which are typically bundled into a single monthly payment under the regulated model.