Owners of villas in Dubai who want to lease different floors to different families should first determine whether the arrangement is simply a divided tenancy or whether it becomes shared accommodation under Dubai Law No. (4) of 2026. The distinction matters because the law gives Dubai Municipality authority over shared housing, including where it may be permitted and which properties may be allocated for that purpose. The legislation applies across Dubai, including private development zones and free zones.
Under the tenancy framework, a lease must be in writing and should clearly identify the property, the lease term, rent, payment method and related details. In the villa scenario, if Family A rents the ground floor and Family B rents the first floor as fully separate and self-contained residential spaces, with no shared facilities, the setup may fall outside the law’s definition of shared accommodation. But if the arrangement involves shared kitchens, bathrooms, outdoor areas or similar common services, it is more likely to be treated as shared housing.
Where the proposal does fall within shared accommodation rules, the owner would need to follow the requirements set by the law before designating the villa or part of it for that use. The next step would be to seek clarification from Dubai Municipality, which is the body responsible for regulating the activity and operating the digital window used for applications, oversight and inspection. Any tenancy documents would still need to comply with Dubai tenancy law and be properly registered through the relevant RERA/Ejari process, subject to the arrangement being permitted in the first place.