Dubai shared housing could cost tenants a quarter to nearly half less, experts say

Property experts say tenants in Dubai could spend 25 per cent to almost half less by moving into regulated shared housing instead of renting a studio or one-bedroom flat. Khaleej Times reported their estimates on 22 October 2026. They also anticipate firmer demand for bigger apartments in approved zones. The figures are expert estimates, not official data.

Under Law No. 4 of 2026, Dubai Municipality has named over 44 areas where shared housing is allowed. Units fall into an individual or a family category, and each unit can serve only one. A circular sets facility and service requirements by category and occupant count.

Farooq Syed, CEO of Springfield Properties, used a studio at Dh45,000 a year, or about Dh3,750 a month. Shared accommodation at Dh2,000 a month would save a resident Dh21,000 a year, close to 47 per cent. He said the real saving varies with location, type of accommodation and services included.

Rohit Bachani of Merlin Real Estate put the saving at 25 to 40 per cent against renting alone. He said legal shared housing costs more than the informal market. “Tenants are now paying for compliance, space, safety and a registered contract,” he said.

Rakesh Mavath of Takeem estimated a workable rent for a compliant room at Dh2,000 to Dh3,000 a month. He put the cost of a studio or single-bedroom flat in those same locations at Dh3,500 to Dh5,000. Operators now bear permit, space and facility costs, so a regulated bed will not match an illegal one on price.

Mavath said the larger gain is upfront. Leasing a whole unit usually involves a deposit, agency fee, Ejari, Dewa connection and several rent cheques. Shared housing typically brings monthly payments, bundled utilities and a protective contract.

Bachani expects stronger demand for two- and three-bedroom flats and villas in approved zones, as the simplest legal way to house several people. Subletting of rooms or beds by tenants is no longer allowed, so he sees owners and licensed operators driving it. He said many large units need works to qualify.

For renters, the experts' figures suggest savings depend on area and inclusions. Whole-unit listings are in the long-term rental catalog.