Dubai Municipality’s formalisation of shared housing is unlikely to bring rents down and could push them higher in the newly approved communities, according to three Dubai property-market figures quoted by Khaleej Times on 19 October 2026. As Zagdim has previously explained, Law No. (4) of 2026 already sets out which areas may host shared housing, how much space each occupant must have and how a permit is obtained; what is new this week is the first expert read on what the law does to rent.
Rakesh Mavath, co-founder of Takeem, frames the law as bringing an existing informal market “on paper” rather than creating anything new: “Dubai has always had shared housing. It just never had it on paper.” He says rents are already correcting for larger reasons unrelated to the law — tenants hit an affordability ceiling in late 2025, a fresh supply wave is still arriving, and household formation has slowed — and calls the new rules “a second-order effect” on top of that. In his reading, the rules pull in two directions at once: inside the newly approved areas, space and facility standards mean fewer beds per unit, and that, combined with higher compliance costs, “usually lifts the price per bed.” Outside those areas, informal sharing must stop or relocate, pushing some units back into the ordinary long-term rental market, which adds supply and puts mild downward pressure on whole-unit rents elsewhere. “Neither is a market-wide reset,” he said.
The article also publishes a longer list of named communities than Dubai Municipality’s own area-by-area circular has detailed so far. Shared housing is confirmed permitted across 28 communities, including Al Ras, Al Dhagaya (Deira), Al Bateen, Naif, Al Rigga, Al Muteena, Al Muraqqabat, Hor Al Anz, Al Rashidiya, Al Nahda 1, Al Qusais, Al Twar 5, Al Nahda 2, Muhaisnah 4, Karama, Oud Metha, Jumeirah 1, Al Barsha 1 and Al Warqa 1, among others. In 11 further communities it is permitted only in designated parts: Abu Hail, Al Baraha, Al Hamriya, Mankhool, Al Jaffiliya, Al Hudaibiya, Al Satwa, Port Saeed, Hor Al Anz East, Al Mamzar and Al Qusais Industrial Areas 1 to 5.
Farooq Syed, CEO of Springfield Properties, does not anticipate “a widespread reduction” in residential rents as a direct result of the law. He points out that the framework governs how shared accommodation is managed and occupied rather than adding housing supply, and that owners must meet space, facility and safety requirements that will raise their operating costs; population growth, supply, location and connectivity will keep shaping the wider market regardless. He also notes that the distinction the rules draw — fully permitted areas, partially designated locations, and restrictions along major commercial and tourism corridors — lets each community be managed on its own terms while owners have until September 2027 to comply, which he reads as a transition toward better-managed accommodation and greater transparency.
The clearest case for higher rents comes from Rohit Bachani, co-founder and director of Merlin Real Estate, who expects rents in the newly regulated communities to rise over the next 12 to 24 months. His reasoning: “Law No. 4 of 2026 caps how many people can share a unit and requires permits, registered contracts and minimum space per person. When a two-bedroom that housed twelve can legally house far fewer, the same rent is split among fewer people.” He adds that displaced residents still need homes in the same central areas, and that “the right decision for safety and dignity” will, in his view, have a market impact “the opposite of what many expect.”
Mavath, for his part, welcomes the shift toward quality and accountability — minimum space per person, proper facilities, and one responsible party per unit — calling it “good for tenants, good for neighbours, and good for the landlords who do it properly.”
None of the three experts put a figure on how much rents might move, and Dubai Land Department has not yet published the launch date or methodology for the dedicated shared-housing rent index that the law provides for, as Zagdim’s guide to the law has noted. As of this report, Khaleej Times is the only outlet to have published named-expert commentary on rent direction under the new rules; readers checking whether a specific building or community is covered should still confirm against Dubai Municipality’s own published area list, which is more limited than the community names given above.
References
Khaleej Times – Dubai’s new shared housing law: Why your rent could actually go up in 2026 / Zagdim – Is Dubai Shared Housing Legal? Approved Areas, Room Standards and Permits Under the 2026 Law, and What Tenants, Landlords and Sub-Letters Must Do
