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Arabian Business
6 days ago
- Business
- Arabian Business
Dubai real estate: What is illegal subletting? Experts warn against shared flats, lease breaches
Subletting or partitioning a rental property in Dubai without approval from the landlord and authorities is against the law. Yet, the practice continues to remain common in parts of the city, real estate experts told Arabian Business, driven by rising rents and demand for affordable housing. Authorities have ramped up inspections in recent months, targeting unlicensed shared housing and warning of safety risks, overcrowding, and violations of building codes. That said, knowing the rules is critical to avoid fines, eviction, and legal disputes – for tenants and landlords alike. So, what exactly is considered illegal subletting or partitioning in Dubai? PP Varghese, Head of Professional Services at Cushman & Wakefield Core, defines illegal subletting as the act of tenants renting out parts of their leased property without proper authorisation from the landlord or relevant authorities. 'Specifically, this includes converting living rooms, balconies, or storage areas into bedrooms, installing makeshift partitions that block emergency exits, or subdividing units beyond their approved capacity. Dubai Municipality's regulations are clear that any structural changes require proper permits and must comply with fire safety, ventilation, and occupancy standards,' he told Arabian Business. Echoing the sentiment, Svetlana Vasilieva, Head of Sales – Secondary, at Metropolitan Premium Properties explained that 'a tenant cannot sublet or share an apartment without written permission from the landlord.' She added that many tenants sublet properties temporarily to avoid breaching contracts during relocation or to share rent costs in high-rent areas. Why does illegal subletting continue? Varghese pointed to economic conditions that make unauthorised subletting attractive to both tenants and landlords. 'The fundamental issue is an economic arbitrage opportunity created by Dubai's rental market dynamics,' he said, adding that residents often prioritise access to soft infrastructure such as retail outlets, public transport, schools, healthcare facilities, and employment hubs. These amenities are typically found in central locations, which also come with high rental prices. 'For tenants, sharing the cost of a centrally located unit makes premium areas accessible at individually affordable rates. For landlords, subdividing units allows them to achieve rental yields significantly higher than standard lease rates – sometimes 150–200 per cent of normal rental income for the same space,' Varghese said. According to Varghese, the economic incentives are 'powerful enough' that some landlords and tenants are willing to accept regulatory risks. Vasilieva also agreed that affordability plays a role. 'There are multiple reasons such as lack of awareness about the regulations, rent affordability – especially in high rent areas by sharing the cost of rent. Often, tenants need to relocate temporarily and in order not to breach the rental contract, the apartment is being sublet for a short period of time,' she said. Which Dubai areas are most affected? Older parts of Dubai report high levels of unauthorised subletting and partitioning, both experts said. According to Vasilieva, areas such as Al Rigga, Deira, and Satwa are among the most affected. She also noted that villas in Jumeirah and larger apartments in Dubai Marina are commonly sublet, especially by younger bachelors and new arrivals. In addition, Varghese explained that the areas most affected are 'typically those that offer the best combination of central location, soft infrastructure access, and rental arbitrage opportunities.' Parts of Bur Dubai, Sheikh Zayed Road, and Jumeirah Lake Towers are also locations with 'see significant illegal subletting activity.' Aside from this, Varghese also listed mid-tier areas with affordable base rents but strong connectivity, including Al Qusais, International City, Discovery Gardens, and parts of Business Bay. 'Interestingly, we're seeing increasing violations in newer developments across various emirates where the economics work favourably – areas that combine reasonable base rental rates with strong connectivity to employment centres and urban amenities,' he said, adding that the pattern consistently follows 'locations where the gap between individual affordability and area desirability creates the most profitable arbitrage opportunities for landlords.' What are the legal consequences? There is a clear legal framework in Dubai on the matter. Article 25 (1)(b) of Law No. 26 of 2007 states that unauthorised subletting is a breach of contract. 'This entitles the landlord to seek eviction of both the tenant and subtenant,' Vasilieva said, adding that if the sublease generates higher revenue than the original tenancy agreement, landlords must file a case at the Rental Dispute Centre to recover the financial difference between the revenue earned from the sublease and the rent stipulated in the original tenancy agreement. 'The landlord may pursue a claim for compensation, these are in addition to any orders issued,' she said. Varghese added that penalties for violations can include fines of up to AED 50,000, with additional fines for overcrowding starting from AED 10,000 per incident. However, there are more repercussions than just a penalty, he added. 'Violations create a documented history with authorities that can complicate future property management and leasing activities,' he said. 'Properties with a history of illegal partitions or overcrowding may face higher scrutiny, lower valuations, and difficulty in sale. Insurance claims may be denied for properties with unauthorised modifications, and owners may face civil liability for safety incidents.' What are the other risks? Another risk is safety concerns – a major issue highlighted by the experts. Varghese explained that illegally partitioned units often result in overloaded electrical systems, blocked fire exits, and inadequate ventilation. 'In emergencies, these unregulated layouts can be life-threatening,' he said, adding that the Civil Defense has 'repeatedly flagged illegal partitions as a fire hazard.' Vasilieva further explained blocked ventilation and emergency exits are among the most common safety risks in such units. Are tenants aware of what is legal? 'It's a responsibility of the landlord to inform the tenants what is allowed in a shared house,' Vasilieva said, stressing that clear terms and conditions should be outlined in tenancy agreements. 'Many new expats don't realise that sharing a flat is only legal when the landlord consents and partitions are approved,' Varghese said, adding that lack of awareness often leaves tenants vulnerable to eviction, even if they have paid rent on time. However, regular inspections carried out by Dubai Municipality has reduced the opportunities for illegal subletting. 'Dubai Municipality conducts regular inspections and responds to public complaints. Enforcement has strengthened, but given the demand for low-cost housing, some illegal setups persist,' he explained, concluding that recent efforts to digitise building permits and track inspections are helping to close enforcement gaps.
Zawya
29-04-2025
- Business
- Zawya
Gulf House Real Estate launches Olaia Residences in the heart of Palm Jumeirah
Dubai, UAE: Gulf House Real Estate, a premier luxury real estate developer in Dubai, is announcing the launch of its first signature development, Olaia Residences, an exclusive residential project set in the heart of Palm Jumeirah – one of the world's most iconic destinations. Leading UAE brokerage firm, Metropolitan Premium Properties, is the exclusive sales and marketing partner for the project. Positioned on Dubai's most prestigious address, Olaia captures the very essence of waterfront luxury living, boasting panoramic views of the Arabian Gulf, Dubai skyline and private beach access. State-of-the-art amenities will include indoor and outdoor pools (rooftop), a wellness center, a mini-golf, 24/7 security and concierge services. 'Olaia is more than just a residence; it's a living statement, a symbol of elevated living and personal distinction,' said Eng. Mohammed Mana Sultan Aballala, Founder and Chairman of Gulf House Real Estate. 'At Gulf House, we believe exceptional living goes beyond aesthetics which means our developments are designed to deliver personalized service, attention to detail and a seamless experience from purchase through to post-handover care.' Blending architectural brilliance with refined elegance, Olaia Residences offers a limited collection of bespoke duplexes and luxury apartments, crafted to deliver an extraordinary lifestyle where opulence meets serenity. The collection of uniquely designed homes, created for discerning buyers who seek individuality and prestige, boasts a sophisticated design with floor-to-ceiling glass and expansive terraces showcasing uninterrupted views. Palm Jumeirah is synonymous with luxury and grandeur and Olaia Residences is the newest crown jewel within this globally recognized community. Olaia Residences will become a destination where everyday life feels like an escape—where breathtaking sunrises and evenings by the sea become a daily ritual. Maria Karmalova, Head of Exclusive Sales at Metropolitan Premium Properties said: 'From an investment perspective, the Palm Jumeirah community is among the most popular and high-performing in Dubai and it has already helped sell 20% of the project prior to launch. There is a limited availability of new luxury developments on Palm Jumeirah, strong rental demand from high-net-worth tenants as well as excellent resale potential thanks to its central location and prestigious surroundings.' The residences will consist of 1–3 bedroom apartments and 3–5 bedroom duplexes with the price for a 1-bedroom unit starting at AED 3.2M (USD 871K) and the initial price for a duplex at AED 11M (USD 2.9M). There are 18 duplexes on the top floor, with private pool, and 16 on the ground floor with sizes ranging from 2,200 sqft up to 4,000 sqft. The available payment plan is 50/50 with a 10% booking fee. Handover of the project is expected for Q4 2027. Olaia Residences is perfectly situated on Al Ittihad Park, 1.1 million sqft of green oasis where visitors can take relaxing strolls, have a picnic, jog on a 3.2 km track, do yoga or exercise amidst beautiful greenery and a picturesque setting. Olaia is also ideally next to The Palm Monorail, the only public transportation system on the Palm that lets its users explore key destinations such as the Golden Mile Galleria, Al Ittihad Park, Nakheel Mall and Atlantis Aquaventure. The Monorail will also connect residents within minutes to the vibrant city center, providing easy access to five-star hotels, Michelin-starred restaurants, designer boutiques and premier leisure destinations. Gulf House Real Estate is a forward-thinking real estate developer renowned for redefining the landscape of luxury living in the UAE. With a focus on innovation, craftsmanship and lifestyle-centric design, the developer is committed to creating timeless properties that reflect the aspirations of a new generation of homeowners. About Gulf House Real Estate Developer Gulf House Real Estate Development stands at the forefront of luxury living, dedicated to creating iconic residences that challenge architectural conventions and redefine the meaning of elegance. With a commitment to bespoke design, our developments are curated for discerning individuals seeking homes that reflect their personal taste, lifestyle, and aspirations. Our philosophy is simple yet powerful: true luxury is not mass produced—it is tailor-made. We work hand-in-hand with globally renowned architects, interior designers, and artisans to shape residences that offer both aesthetic brilliance and functional perfection
Gulf News
28-04-2025
- Business
- Gulf News
Gulf House Real Estate's Olaia Residences offers luxury waterfront living
Gulf House Real Estate, a premier luxury real estate developer in Dubai, has launched its signature development, Olaia Residences, an exclusive residential project set in the heart of Palm Jumeirah – one of the world's most iconic destinations. Leading UAE brokerage firm Metropolitan Premium Properties is the exclusive sales and marketing partner for the project. Located on Dubai's most prestigious address, Olaia captures the very essence of luxury waterfront living, boasting panoramic views of the Arabian Gulf, Dubai skyline and private beach access. State-of-the-art amenities include indoor and outdoor pools (rooftop), a wellness centre, a mini-golf, 24/7 security and concierge services. 'Olaia is more than just a residence; it's a living statement, a symbol of elevated living and personal distinction,' says Mohammed Mana Sultan Aballala, Founder and Chairman of Gulf House Real Estate. 'At Gulf House, we believe exceptional living goes beyond aesthetics, which means our developments are designed to deliver personalised service, attention to detail and a seamless experience from purchase through to post-handover care.' Blending architectural brilliance with refined elegance, Olaia Residences offers a limited collection of bespoke duplexes and luxury apartments, crafted to deliver an extraordinary lifestyle where opulence meets serenity. The collection of uniquely designed homes, created for discerning buyers who seek individuality and prestige, boasts a sophisticated design with floor-to-ceiling glass and expansive terraces showcasing uninterrupted views. Palm Jumeirah is synonymous with luxury and grandeur and Olaia Residences is the newest crown jewel within this globally recognised community. Olaia will become a destination where everyday life feels like an escape—where breathtaking sunrises and evenings by the sea become a daily ritual. Investment opportunity 'From an investment perspective, the Palm Jumeirah community is among the most popular and high-performing in Dubai and it has already helped sell 20 per cent of the project prior to launch,' says Maria Karmalova, Head of Exclusive Sales at Metropolitan Premium Properties. 'There is a limited availability of new luxury developments on Palm Jumeirah, strong rental demand from high-net-worth tenants as well as excellent resale potential thanks to its central location and prestigious surroundings.' The residences will consist of one- to three-bedroom apartments and three- to five-bedroom duplexes with the price of a one-bedroom unit starting at Dh3.2 million and the initial price for a duplex at Dh11 million. There are 18 duplexes on the top floor, with private pool, and 16 on the ground floor with sizes ranging from 2,200 square feet up to 4,000 square feet. The available payment plan is 50/50 with a 10 per cent booking fee. Handover of the project is expected in the fourth quarter of 2027. Olaia Residences is situated on Al Ittihad Park, 1.1 million square feet of green oasis where visitors can take relaxing strolls, have a picnic, jog on a 3.2km track, do yoga or exercise amidst beautiful greenery and a picturesque setting. Olaia is also next to The Palm Monorail, the only public transportation system on the Palm that lets its users explore key destinations such as the Golden Mile Galleria, Al Ittihad Park, Nakheel Mall and Atlantis Aquaventure. The Monorail also connects residents within minutes to the vibrant city centre, providing easy access to five-star hotels, Michelin-starred restaurants, designer boutiques and premier leisure destinations. Gulf House Real Estate is a forward-thinking real estate developer renowned for redefining the landscape of luxury living in the UAE. With a focus on innovation, craftsmanship and lifestyle-centric design, the developer is committed to creating timeless properties that reflect the aspirations of a new generation of homeowners.
Khaleej Times
27-03-2025
- Business
- Khaleej Times
Luxury meets privacy at this exclusive island in Dubai
Dubai's Jumeirah Bay is known as the Billionaires' Island, and rightly so. Nestled off the coast between Downtown and World Islands, this uber-luxurious island is home to centimillionaires and billionaires. Connected to Dubai by a private bridge, the private island features just 128 ultra-premium plots offering unmatched privacy, breathtaking skyline views, and direct waterfront access. 'Plots on the island were offered only to Gulf royals…The net worth of the people who live there is much higher than you can imagine. Most of them are billionaires, not millionaires. People who are buying at Bvlgari Residences know that whatever they have is a jewel in their crown. It is very difficult to find a seller. If anything is being sold, it is off-market most of the time,' said Rasha Ibrahim, senior sales manager at Metropolitan Premium Properties. Premium records Jumeirah Bay Island has cemented itself as the destination for ultra-luxury real estate in Dubai with its continuous record-breaking transactions. A six-bedroom custom-built villa was sold for a record Dh330 million, making it the most expensive home on the island. The previous record was a cool Dh240.5 million. According to Sotheby's International Realty, if the price per square foot is taken into account, Jumeirah Bay Island is already the most expensive residential area in Dubai. 'The island's properties consistently achieve higher per square foot rates than Palm Jumeirah and Emirates Hills, with record-breaking transactions like…the Dh330 million mansion sale solidifying its dominance. As demand continues to rise, Jumeirah Bay will continue to set new benchmarks for ultra-luxury real estate in Dubai,' said Regan Faulkner, associate director at Dubai Sotheby's International Realty. According to Rasha, a custom-made villa on Jumeirah Bay Island will cost double what is available in other posh areas like the Palm. 'We offered Dh500 million price to some of the owners, but they rejected the offer. They said they would not sell it even for Dh1 billion. They want to enjoy that exclusivity that Jumeirah Bay Island offers them,' says Rasha, who is known as the 'Queen of Bvlgari Island' as she specialises in the project. 'There are people who rent only in Bvlgari because they cannot live anywhere else and not settle below that quality of life. They live in the most posh places in London, the US and they just cannot compare any other residence in Dubai,' she said. Leading the price rally Dubai's prime residential market has surged, and Jumeirah Bay Island has led the way. While overall prime areas saw an 18.2 per cent increase in value, the island's most exclusive plots have appreciated far beyond this average. According to Sotheby's International Realty, in just three months, plots of the same size on Jumeirah Bay jumped from Dh150 million to Dh180 million, marking a 20 per cent increase in value. This highlights the overwhelming demand and limited availability on the island. Regan believes that the price rally will continue into 2025 as well. 'The limited supply of plots, the unrivalled prestige, and the increasing influx of UHNWIs are set to push prices even higher. Market forecasts already predict an 8 per cent rise in luxury real estate prices for 2025, but Jumeirah Bay Island is likely to massively outperform this projection, given its scarcity and rising global demand. 'Unlike other luxury communities, Jumeirah Bay Island is a true standalone island, accessible only by a single private bridge, which ensures an unparalleled level of exclusivity and seclusion for residents, as well as providing an ultra-prime waterfront location with a clear and unobstructed view of the Dubai skyline and Arabian Gulf.' The island offers the 'unique opportunity for true customisation', which is something that ultra-high net worth individuals (UNHWIs) prize. It provides options for custom-built ultra-luxury mansions that are specifically designed to meet individual tastes and requirements. 'Additionally, residents can access Bvlgari Resort and Yacht Club, offering a high-end lifestyle experience,' said Regan. According to Metropolitan Properties, prices increased more than 40 per cent last year and plots that were sold initially at Dh25 million have seen their prices go up by 200 per cent so far. Billionaires' island or billionaires' row? Frond G of Palm Jumeirah is another address that billionaires want in their portfolios. Unlike Frond G, which is attached to Palm Jumeirah, Jumeirah Bay Island is a private island sanctuary, with a single exclusive entry point. Frond G offers medium-to-large beachfront villas as a part of a larger development, whereas Jumeirah Bay Island plots are significantly larger, allowing for fully custom-built ultra-luxury mansions. 'It's also worth noting that Jumeirah Bay Island has overtaken Palm Jumeirah in property values, with transaction records now significantly higher than those on Frond G,' said Ioana Armeanu, associate director at Dubai Sotheby's International Realty. Lyndsey Redstone, private office adviser at Allsopp & Allsopp, called Jumeirah Bay the 'perfect private retreat'. 'Whether it's a full-time home or a place to stay when visiting the city, nothing compares. With villas surrounded by the Bvlgari Resort & Marina and just a short drive from the city, it's no surprise that the area is becoming the top choice for the elite.'
Zawya
04-03-2025
- Business
- Zawya
Penthouse.ae lists Signature Villa on Palm Jumeirah for AED 7.5mln yearly rent
Dubai, United Arab Emirates: powered by Metropolitan and the luxury division of Metropolitan Premium Properties, has exclusively listed, in collaboration with Savills, a Signature Villa, on the prestigious Palm Jumeirah for an annual rent of AED 7.5 million ($2 million). 'As Dubai continues to cement its position as one of the world's ultra-luxury real estate capitals, this Signature Villa listing underscores the city's unrivaled offerings in the super-prime segment,' said Marcus Andersson, Director of Sales, 'The Signature Villa is an ideal offering for UHNWIs seeking a once-in-a-lifetime rental opportunity in one of the world's most sought-after locations. This villa is a true masterpiece, designed to cater to the most discerning clientele who expect nothing less than perfection in every aspect of their lifestyle.' With its prime location and its array of high-end features, the villa caters to ultra-high-net-worth individuals (UHNWIs) seeking unparalleled luxury and exclusivity, further solidifying Dubai's position as a leading global destination for ultra-luxury real estate investors. This stunning villa sits on a 15,000 sq ft plot and offers breathtaking views of the Arabian Gulf and the Dubai skyline. The meticulously designed residence features four bedrooms, two garages and several luxurious amenities, including a show kitchen, grease kitchen, two living rooms, a dining room and a dedicated office space. Each of the four main bedrooms features built-in wardrobes, while the villa also includes two staff rooms. The villa's contemporary design is evident in its premium finishes, cutting-edge appliances, and stylish furnishings from Fendi. Residents can enjoy a private indoor gym, home theatre, jacuzzi and sauna, an infinity pool and a cold plunge pool. The outdoor space is equally impressive, with an infinity pool overlooking the Arabian Gulf and Ain Dubai, the world's tallest observation wheel. provides a full-suite, concierge-style service for ultra-high-net-worth property owners and investors. From strategically positioning ultra-exclusive properties and facilitating off-market deals to curating investment portfolios, ensures every aspect of the process is handled with precision and discretion. expertise is backed by a deep understanding of the market, a global network and a proven track record. A team of 30 expert agents, caters to a clientele from across the world, matching discerning buyers with exceptional properties, from private waterfront villas to penthouses with panoramic views. For more information on the Signature Villa, please visit About powered by Metropolitan is the luxury division of Metropolitan Premium Properties, a Dubai-based full-service real estate agency and the flagship property company of the Metropolitan Group. The brand was launched in 2022 to cater to the discerning needs of Ultra High-Net-Worth Individuals (UHNWIs) who require a bespoke real estate experience in the UAE. The agency caters to properties valued at AED 15M and above, offering tailored end-to-end solutions that include opening bank accounts to assist with visas, legal services, company formation and property management among others. About Metropolitan Premium Properties Metropolitan Premium Properties (MPP) is the Metropolitan Group's flagship property company based in Dubai. It is a full-service real estate agency offering customised solutions to developers, owners and investors who are looking to maximise value from their luxury real estate assets. MPP offers a complete real estate solution under one roof and has the UAE's largest premium property portfolio. For further information, please contact: Lejo Johnny Leidar MENA Email:
